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Please help. need advise and short of time

2K views 8 replies 8 participants last post by  Mukhang pera 
#1 ·
thanks in advance to any who respond with helpful advice.

As background iam twice divorced and twice bankrupt so my credit score is not something that ayone could a source of pride. Iam awaiting a decision on cpp disability that i should get vey soon and with that should come 2 years retro pay. I am 48 and have a son that just turned a year old. i am living in my parents home and they have renovated and are moving into what used to be the summer cabin. to enjoy their retiement years they need to sell this house so they can have the money they need to do the things they want to do. I am desperate to keep this home in the family and i know my dad would like me to be able to buy it and would sell it to me for less than market value if that would make it easier for me to find a mortgage.i have renters lined up that would rent rooms in the house to cover the mortgage payments and am also very nterested in perhaps renting out part of the home for an air bnb e. im just wondering if anyone knows if there is a way i could get a mortgage on the property even if my credit is poor based on the collateral equity in the home being worth more thanthe ammount id be asking to borrow. or another way i can buy my dads property so he can get a large cash injection and i can buy my childhood home nd use the property to generate income while also living in it.` my dad needs to sell the property here asap to help pay for the upgrades to the lake house they will be moving into. I am also supposed to be eligile for some kind of government money for rdsp called the grant even if i haveno money to put away myself due to having had the disability tax credit for many years I would appreciate any advice info anyone has to offer because i dont know where to begin and losing this property is not a option i can bear to think about. its a very unique rural property with a bridge we built over a creek that rus to to the river on the rear boundary of the land and a lot of forested acres that we have been cutting and maintaining walking trails through since i was a kid. The property also has a shop and 2 car garage i use to make extra money fixing cars and electronics, doing some welding and other assorted projects. oh Both of the properties are in manitoba. Please do not tell me that there is no option that i can use to keep y home.
 
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#2 ·
Your dad has the option to rent the house you want to keep, and maybe rent part of it to you. He takes a loan for the cottage renos and services the loan with the rents from the house, if that cash flow works.

You may have to do a yard clean up of your ongoing projects to make the place more marketable to other tenants so rents can be higher.

My sisters in laws who never moved out went through the same thing when my father in law passed away - they loved the place they grew up in, but never generated the cash and savings to swing a mortgage jointly. The estate let them live in the house for a year after he died, and that caused all sorts of screw ups.

You are presently not on a path for home ownership.
Sorry to have to say it so plainly.
 
#5 ·
Obtaining a mortgage through a conventional channel is near impossible. Your only option is a private mortgage, however, anyone willing to lend money given your situation will be very aggressive on upfront fees, interest rate, and very conservative on the amount they'd be willing to lend. Rest assured, they will bear no risk - as soon as you default on payments, they will foreclose on your property. You risk loosing the property all together.

I would strongly advise you sell the property. This way, you guarantee that your dad will obtain top dollars from the sale. You can try to work out a deal with the buyer to remain in the house and rent for a while.

Ultimately, you have no steady income and a very poor credit history. You're considered a high risk borrower so not many will not want to lend to you. Planning to rent out rooms, Airbnb, are all great ideas - but not for a lender. Mentioning this to the lender will reinforce the fact you are a high-risk borrower and may even put the property condition in question.

I am sorry to deliver the bad news and not what you wanted to hear. Your options are very limited and the outlook is not very positive.
 
#6 ·
I had this idea a long time ago but never needed to implemented it. I’m not a lawyer or a financial professional so if you think it is worthy, get a professional’s opinion. If not, kindly let me down gently.

Have your parents sell the house to you. Take out a mortgage from your parents so that you can pay your monthly mortgage instalments to them. Do your parents need the total amount at this time or would monthly income help them with their retirement dreams? You can rent the house out as you have planned to finance your mortgage payments. If there is a mortgage default, your parents (the mortgage lender) can foreclose on the house. Since your parents are the mortgage lender, there will be tax considerations as the interest portion of the mortgage payments will be income.

The only extra costs will be lawyer's fees on both ends, and Land Transfer tax. Since no real estate agent will be involved, there is no commission.
 
#7 ·
My 1c less costlier way here based on the assumption that your parents had the funds for a reno on their 2nd home - the summer cabin.

Have your parents draw up a payment plan from you, then "gift" you their house where you can continue paying for its upkeeps. This way it's still in the "family" and you've a place to live.

As soon as you have the means (whether from CPPD, RDSP, rent part of the house, etc.), make good on that pre-payment plan to your parents.

Only costs like Tostig's post is lawyer's fee and land Transfer tax (even as gift).
 
#8 ·
I love my kids but if they were divorced twice , bankrupt twice and no stable income I am not handing them over title to my property ,it sucks not to be able to keep property in the family .But are your parents willing to get zippo in cash upfront and just some token payments while incurring debts themselves ?Could they get a credit line on the property and have you make the entire payments ,can they trust you to do that? How are you going to live if you do not have this property ?At 48 years old you seem to have nothing to be stable unless renting rooms is the plan .CPP won't be a pot of gold with prices of groceries utilities etc.
 
#9 ·
I don't have a lot to add in addition to the ideas above. I think Mortgage u/w has it about right.

But, we have no idea about the property to be purchased. How rural is rural? How "unique" is it. Both of those things might make it less attractive to lenders. What's your estimate of its fair market value? Is it $100,000 or $1 million, or more? Makes a difference. How much money does dad need to fix up cottage?

As Marina says, CPP won't be a pot of gold. In any event, not approved yet. My mummy always used to admonish against counting one's chickens before they hatch. Also, at age 48, you are able to make babies and "make extra money fixing cars and electronics, doing some welding and other assorted projects". Sounds a lot like you are employable or capable of your own business. But I know a sympathetic physician can paint a picture making you look like a basket case.

Also, you mention forested acreage. I know nothing about forest land in Manitoba and what timber values there might be. What's the volume of standing timber, species, etc.? Might be worth a lot. Here on there BC coast, I can sell western red cedar right now for $400 per cubic meter. Douglas fir and even western hemlock prices are decent.
 
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