House buy out--how much

[rds_nc]

So my wife (before we were married) bought the house with her mother. The situation no longer is working. We met, married and had a kid. Her mom found a serious boyfriend. The house and situation was fine before but now there's too many people for not enough house with a baby and aging parent. Her mom used her inheritance for the down payment and significant upgrades to the house. My wife has been paying an equal share of the mortgage and other expenses since then. I've been doing a lot of the regular maintenance that my MIL was paying for before (lawn stuff, HVAC filter changes, little stuff like that but that my MIL was paying for). A lot of the furniture, appliances, etc were paid for with a joint account they set up. They would put a little extra each month into that joint account for that sort of thing. Tax returns also went into that account. When we talk to my MIL it sounds like she's pretty open to her and her BF buying us out. It's more house than they need and should take care of but it's what they want. Because of little man it's not really something we want to buy them out of since it's an older community and right on the water that has gators. They bought the house within 2 weeks of the very bottom of the real estate market roughly 66 months ago so between the market going up and the upgrades there's a pretty good amount of equity built up. Essentially it's going to have to be a divorce type split of the asset so how do we go about making sure we get a fair number since we are going to be starting over from nearly scratch?

[grandbassslayer]

Get it appraised, its half yours, everyrhing else is just living expense and should be a non factor. Does the mil have cash for your half of equity? Whos name is the house in?

[cbp84]

Good luck!

[grout-scout]

Well if you wait a few more months it’s going to be a buyers market and then you can beat her down some. Interest rates went up and the markets gonna get slow.

oh re-read it, you’ll be the one getting beaten down on appraisals.

[wildturkey]

Probably depends on whose names are on the title and if there was a contractural agreement prior to now.

[Nova Kaw 650]

That's a tough one.... but it does sound like it's between your wife and her mother.
Show some latitude on the price and keep in mind that they bought a house that they both could afford due to the depressed market. Your MIL may not be able to afford to buy the other half if the value has gone up a lot.
They may have to sell the house outright, then you both go your separate ways, imo.

[jc1234]

Hire an appraiser and have your MIL do the same. Then take the average of the 2. You probably should subtract the original down payment from the assessed value then settle for half of the remainder. I think this way no one will feel shorted. Don't think of it as a divorce either. It's more of a dissolvent of a business agreement.

[Bill2e]

Hire an appraiser and have your MIL do the same. Then take the average of the 2. You probably should subtract the original down payment from the assessed value then settle for half of the remainder. I think this way no one will feel shorted. Don't think of it as a divorce either. It's more of a dissolvent of a business agreement.

good way to look at it.

[berudd]

Good point about it being worth a lot more making the buyout more expensive. Might be in both their best interests to just sell it. MIL will likely have to take a second mortgage to pay the buyout. Did you mean MIL used inheritance she received from the passing a relative? If so, I’d probably spot her that amount from the equity and the expect half of the remaining equity. Furtiture will be tougher. Hopefully they have the same ideas about that

Would be hard to bring up but I’d being thinking about longer term and how the BF factors in to your MIL’s estate if it comes to that. Is he paying mortgage and upkeep? Even if not and they get married it becomes marital property. Does he have heirs? How much of the house would they get? Does MIL have a will?

[D.O.C. 989]

If your financially able, why not keep the arrangement and go buy your own place. If you can swing the wifes payment half and your own payment you will own 2 homes eventually and then you can sell one or both and move on up.

[Fishin is life]

Most importantly keep it civil, not worth losing a family member over money. Agree that getting it appraised is the way to go. Take the appraisal value, subtract the down payment the mil made and whats still owed on the house. Take that bottom line and split it in half, thats what she owes you. Keeps it very simple. You stating that you did basic maintenance makes it sound like you want a bigger piece of the pie. I would do all of my parents maintenance and never expect a penny even though i dont live with them.

[rds_nc]

Good point about making it a dissolvement.

Both of their names are on the mortgage. My MIL is not going to be able to afford the house without us or her BF. He retired early and talks about selling his house in SC to move this way. They talk about marriage but b/c of age aren't sure they want to with looking old age issues like dementia & Alzheimer's in the face. Unfortunately, they're mainly talk. It finally has come to a point that we're sort of all forced into making a decision.

I wish we were financially able to keep it and make another payment on a house. In BBC style I paid cash for my rig but it is a kayak, lol!

[rds_nc]

Most importantly keep it civil, not worth losing a family member over money. Agree that getting it appraised is the way to go. Take the appraisal value, subtract the down payment the mil made and whats still owed on the house. Take that bottom line and split it in half, thats what she owes you. Keeps it very simple. You stating that you did basic maintenance makes it sound like you want a bigger piece of the pie. I would do all of my parents maintenance and never expect a penny even though i dont live with them.

I don't think I expressed that correctly then. If it came across that way then I think it's probably my own frustration coming out over the whole deal of her constantly telling us how much she does around the house. Like you said it's the basic stuff that has to happen and just the division of labor.

[TampaJim]

It's your wife and her mom ... stay out of it. Anything else and you're screwed.

[JerryT]

So mom made down payment and all the upgrades .. wouldnt you only be entitled to your half of the 66 payments back ??

[Charles Prestridge]

Since the house is close to the water, it is likely in an ecologically-fragile area.

What about selling the house (for what is owned on the bank loan), to an non-profit working to restore waterways.

The non-profit can remove house and restore land back to natural state.

[Fatshaft Merc]

Since the house is close to the water, it is likely in an ecologically-fragile area.

What about selling the house (for what is owned on the bank loan), to an non-profit working to restore waterways.

The non-profit can remove house and restore land back to natural state.

Are you serious Clark?

[JerryT]

Since the house is close to the water, it is likely in an ecologically-fragile area.

What about selling the house (for what is owned on the bank loan), to an non-profit working to restore waterways.

The non-profit can remove house and restore land back to natural state.

What the truck ??

[Charles Prestridge]

What the truck ??

Jerry, I thought you would get the sarcasm of my post. rds_nc is usually pushing agendas against coal, diesels, etc.. Just wanted to toss out an option of giving back to the earth.

[Redneckgearhead]

Cut your losses and move out.