Posted by JT-IN on July 25, 2003 at 24:11:22:
jorge:
Even though it is your pop, and even though it is the house you grew up in, etc., etc… whatever you do, don’t get emotional here and make a mistake. Be sure to have a title search completed before you leap/buy. As long as there are no other judgments or liens against pop, then you should be able to get clear title, which is essential.
When folks get into financial trouble, and you pop is NO exception, they tend to get into financial trouble with more than one creditor. This could mean others have a claim on his equity in this house. Provided that they do not, and provided that pop is not now in Bankruptcy, nor is he contemplating BK within the next year or two, then the arms-length matter is not an issue. However, lets say you buy pops house now for 35K, get clear title/deed, and about 6 months or one year later he files for BK, then BK Trustee, because you were not arms-length in this transaction, could and would reverse the sale, restoring title and equity back to your pop… and his other creditors that he owes. Provided nothing like that is in the works, then the arms-length issue is meaningless to you.
Wish you all the best… It is nice to be able to help out dear old pop… Nice going.
JT-IN