Raising funds to pay off a mortgage

[willspal]

This might take a while but if anyone can help I would appreciate it.

My MIL and her husband ( 70 & 61) have a mortgage of �25,000 and 'i think' a few smallish laons, mounting to about �45,000. He has just been made redundant and they are in a bit of a stew as to what they can do financially.

They looked into selling the equity from the house (about �80/90,000 ) but realised it would cost them a hell of a lot of money and they would have nothing to leave their sons ( 40, 42, 46 ) at the end of it. I must point out the sons are not bothered about this as they all own their own homes and are doing ok financially.

BUT at Easter they approached all the sons and asked them to each pay in �15,000 so they could pay off their mortgage. They would then all own the house equally and after their deaths they could sell the house and split the profit 3 ways. !!!!!!!!!!! (me not happy at this suggestion)

The other 2 seem happy enough to get the money some way or other but we are a family of 5 (3 small children) with only my husband working. We struggle a bit and don't have any savings so it would mean increasing our mortgage to pay our �15,000.

To say I am against the idea is a BIG understatement but I am being made to feel very bad about this.

Is there any other way they could raise the cash to pay off their mortgage without us being put out financially. I can feel trouble brewing.

Sorry for the essay.

WP

[gammaray]

No disrespect to your Mother In Law and her husband but why are you being asked to pay off their loans as well as their mortgage? The mortgage I can understand because you have a vested interest in the property, but the loans? You gain nothing by paying off those. You could suggest that he get another job ( I appreciate he may have to scale down his expectations but he would be able to continue payng the mortgage and the loans with even a modest income).

To add eight and a half grand to your own mortgage (a third share of their outstanding mortgage) over the same period as your mortgage won't add too much to your own repayments.

[lady_p_gold]

I suppose one way would be for you not to put in the �15,000 and for the house to be split with a larger amount going to the brothers, i.e. they put in your share and your share was reduced accordingly. As you say, trouble could be brewing and these family things always cause heartache and animosity. Might be best for them to just sell the house, clear everything and buy a smaller place and hope that they live long enough for it to increase in value.

[Ethel]

It could be another 30 years or more before they leave that house, one way or another.

In that time the sons could be divorced, died or anything. You just do not know what is around the corner.

I firmly believe that finance and family do not mix. They are adults and should sort this out themselves.

Likewise the children are adults and providing for them really should not be a consideration.

[jon1968]

Don�t do it if it�s going to cause you hardship.
If none of the sons are bothered about the future windfall then tell your MIL to release the equity in the house.
If the other two sons want to get involved from an �investment� point of view then they can and your MIL need only release a proportion of the equity and they can pay the rest in exchange for a future larger share in the house after the inevitable.
Don�t feel bad about your stance, I think it�s ridiculous for them to ask you to pay off their debts when they have the ability to pay it themselves.

As Ethel says, finance and family don�t mix.

[willspal]

Thankyou for your replies.

I don't feel as bad after reading some of the comments. I totally agree that family and finance do not mix and I think this case would really prove that to be true.

To add �15,000 to our mortgage when we are paying �600 a month now would be crazy. It would not stop at �15,000, by the time it was paid it would be more like �20,000 with the interest we would be paying on it.

They are both in good health and I can't see why he does not get a job elsewhere to pay his own bills. What would happen if my husband lost his job ???? would everyone rally round to pay off our mortgage. !!!! ummmmm me thinks not.

Anyway thanks again, I don't feel such a 2 headed monster now.

WP

[jason1980]

Yeah I have to say, that being asked to pay off their debts is really bad. As unless the title deeds are changed to your names, you could pay their debts off and then they could sell the house or remortgage if they wanted, getting into more debt.

I would not do this at all. At the end of the day, both could have a good 30years left in them, and when you think about how old you might be in 30 years, was it worth getting into debt yourself to end up old with one third value of a house.

Anyone paying money for a share of the house should have their name put on the property deeds otherwise like I said above, they can sell it and you'd end up with nothing.