Posted by DaveD (WI) on April 04, 2006 at 09:20:55:
In order to think outside the box you need to challenge your own assumptions. Here are a few questions to start your thinking.
Why do thy need to sell for full market?
Are they planning to live off the equity difference between their old house and the new one?
If so, how would they invest this amount?
What purchase price for them would create a “low” mortgage?
Can they even qualify for a mortgage?
How long do you think they will utilize this new house before bad health forces another move?
Should they be buying at all? Maybe renting and/or assisted living would be better?
Who is the beneficiary of their estate?
Just a thought. I’m making a lot of assumptions here, but if they are planning to take their gain and invest it conservatively, why not have them carry back most of their equity? They know the borrower (you!). Just take over their payments, and set up a low rate of interest on the difference that gives them something, but gets you in the door for the equivelent combined payment of a 600K house.
Then put them in a nice retirement home, and bring them flowers often. They deserve it.