Newsflash: Buying dead fathers house from his partner in [WA] and I’m a beneficiary of estate. What should I be concerned about?

I’ll try and provide as much detail as I can though this is still the early stages of the process. First… A little back story.My dad and his partner (We’ll call him Mike) had been living together since around 2000 and within a couple years Mike had some money trouble and my dad offered to buy half the house and help make payments on the mortgage. At that point my Dad put in his will that his half of the house would go to me and my brother in the event of its sale (if he was already dead). At some point they had to take a 2nd mortgage out on the house to pay for some things (I’m still working on finding out how much is left on it). The 1st mortgage is apparently paid off and only the 2nd mortgage remains which is nice. Now, on Xmas even 2015 my father passed away and we were able to find his will which outlined this. I understood that he left his half to Mike but after 19 months my family just told me I was wrong. Now to my predicament…3 weeks ago Mike asked me if I wanted to buy the house and I told him I didn’t have the money as he wants to sell it for $350k and I already own one house and based on what I can tell can only afford $250k. Fast forward to last weekend when my friend who is a real estate investor tells me about lots of other ways to buy houses besides traditional 20% down and a conventional 30yr loan. He mentions he has bought several houses under contract (owner financing) and pays a smaller amount for a set period of time with potential balloon payments giving him enough time to fix it up and then refinance with a bank. The seller gets what they want (full price of $350k in this case) and the buyer is able to buy it. This sounds like it’s something I could do because the house is big, on the water, and laid out perfectly for two large units which would be easy to rent in the area. So Mike is willing to hold the “paperwork” of the contract for a while but wants cash as soon as possible. He says he also wants to try and avoid a bank right now because he’s concerned that with the roof needing to be replaced that the bank would want that repaired before it can be sold. The current neighbor also had a property assessment done that shows they actually own part of the property on our side of the fence that the neighbors 27 years ago built (the house has had 4 different owners since the fence was built). I keep hearing from my friends that have bought and sold over 10 houses each that these are not big concerns but I still have my doubts. Mike and I both want the house to stay within the “family” and I can tell he wants to “sell” it fast but I want to do this right. As you can tell I’m trying to figure everything out and I believe that I can use the 25% that I’ll get back from the sale of the house (me buying it) back and that I should be able to apply that to the closing costs and other things but I’m a little confused about the process since right now. The Estate is still going through probate right now so I’m not sure what happens when the house gets sold. The house last sold for $120k so if I buy it for $350k the 2nd mortgage would need to be paid off, then my dads debts (last I heard was about $10k to Dads Discover credit card), then Mike gets his 50%, my brother gets his 25%, and I get my 25%. Somewhere in there will be money paid to the lawyer handling everything (who is my aunt) and any other expenses along the way. My write-up is all over the place I know but that’s about how my brain feels right now. There are so many things to consider, processes I have to worry about, people and things that need to be paid, in a shorter period of time then I was expecting, and of course need to figure out if I can afford it. Please let me know what questions I should be asking, what questions you have so I can fill in the missing data, and anything else. I’m so lost and I know Reddit is the best place to go right now. Thank you!!!



Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s