Never Make Deals With Family!

[UTCVenturesLtd]

My bro and sis inlaws moved to Saskatchewan last year. They were not able to find a place to rent, but found a house for sale for under $20k! They wanted to know if i would buy it and then they could buy it off of me after making payments to pay it off in full. Since they moved and started new jobs, they had no working history so could not qualify for a loan.

I bought the house in my name, drew up an agreement whereby they make 3yrs of payments of $500.00 starting in Aug, 2008 and the house gets signed over to them. I also said if $500.00 a month were ever a burden, we could readjust the figures.

They are now two months behind in payments for the last 2 months. I am in need of those funds to keep arriving so now i have my funds tied up in this "dead" deal. My new mortgage broker told me that because they have failed to make the said payments, that deal is over. I emailed them telling them to visit their credit union and get a loan now that they have some working history out there and buy me out. Currently waiting for a reply.

Ready to pass this property to another investor so that it is not a family matter that i have to deal with. Just $15,000 for a two storey house with a heated workshop on 4 titles and only 16kms to Waterous/ Lake Manitou. Place needs a new roof and flooring/paint throughout with some TLC and the value would easily double as a flip.

Any other suggestions on what to do with this situation other than what i have going now?

 

[GarthChapman]

Go have a face to face with your brother. Do what you can. Family is more important in the long run than money, so make the best of this without allowing yourself to be completely taken advantage of. You will be the villian no matter what you do so focus on the fact that you know the truth and don`t worry about what other family members may think.

If they can`t make this work quickly then out the place up for sale. You may find that your Realtor requirs the home to be empty to properly market it. At least that is what I would say...

 

[Thomas Beyer]

work with them .. find out why they don`t pay .. show them your side of not getting the $500 .. they may think you`re rich and can easily be mooched off !

or ask another relative to go 50/50 with you or lend them the $500/month @ 10% interest ..

or help them get a mortgage and buy you out !

 

[UTCVenturesLtd]

The cheque is in the mail??? (Have you heard that one before?)

They decided that they are now going to play catch up to where they should be so supposedly there are some money orders in the mail at this point as quick as they can get them off. Hoping that isn`t something that just happens for this month so we will see as time goes on.

Thank you for your input!