I have lived with my father in law for that time. Raising my children with my wife. We have worked toward a verbal agreement where part of our rent would be counted toward his 5 of his 20 acres. And eventually we would build.
The land was subdivided 7 years ago. The land is worth $70,000 and $20,000 has been paid with our agreement. He agreed that we pay the remainder $50,000 in monthly installments for the next 5 years.
We would build right away upon closing and passing of the deed of the land. Our intent was to build ASAP in 2021. Here is a timeline of what transpired this year.
January: he told us not to hire an attorney because we just use his. February: I question the progress and he said to hire an attorney to make the contract and a title search would need to be done and everything will be fine. March: I hide an attorney for $3,000 my lawyer makes the contract with all of our terms and agreements matching. We both sign the contract. April: title search is complete. It is found that the land is part of his quicken loans mortgage. Father in law stalls for a next step. May: my lawyer suggests he request quicken loans for a discharge of mortgage, or refinance his current mortgage. June: father in law applies to one lender for refinancing. His depth to income ratio doesn’t fly. He owes $280,000 on the mortgage, he owes $30,000 on a new car he bought in January of this year, he owes $25,000 on a lending tree personal loan he took out 3 years ago to make ends meet. No refinance unless he gets a co-signer or 55k paid.
The discharge of mortgage says with fha loans it will take at least 6 months to release. I don’t have the patience, the living conditions here are deteriorating, he has a broken heating system that will make conditions unlivable here in the winter, there are rodents who make there way in here because it’s a very old house with no maintenance done. And We feel misled.
If we walk away from this deal and move ASAP, I doubt he has the means to pay his mortgage and taxes. But I feel like a 12 year old kid living under his roof with my wife and children. We don’t eat dinner as a family because of the living conditions, the list goes on, on why we need to get out ASAP.
We are financial stable and able to purchase a house elsewhere or build elsewhere. We have a business where it doesn’t matter where we live. Moving would be the only hassle as we have 5 40 foot shipping containers filled with items for our business. This is a lot to take in. Can someone with some experience and wisdom guide me during this tough time?