Posted by Luke on February 01, 2002 at 09:04:48:
I would assume the first mortgage and have them (the in-laws) give you a carryback mortgage for either all or part of the remaining $28K. Also, make sure you know how much they are in arrears on the first mortgage, because that will have to be paid up somehow…my approach is to pay that for them and use that as the “down payment”.
Also, what are comparable homes selling for? Is the $85K a good deal or is it their fantasy? Since you are the one helping them, you have all the leverage in the world. Certainly, you don’t want to take advantage of them and leave bad feelings over the deal, but you are helping them out of a financial travesty and, I believe, you should be rewarded (fairly, that is) for that.
All in all, remember this: Don’t let family cloud your judgement. Being fair and equitable goes for them and you, as well. If this deal can’t go forward without you taking on an unnecessary burden, don’t. Don’t make their problems yours.