Best way to do a cash purchase of parents house?

Hi all. Sorry for the long post, but hopefully someone can help out. I have looked around online and can’t find anything that fits this scenario with answers to most of my questions. The current plan is to purchase my dad’s house with cash. He will stay in the home and rent from me for amount he has been paying the mortgage company. We are going to buy it for the current loan balance and he will gift us the equity.

The main reason for this is to keep the equity in the family for when he eventually has to go into a retirement home (I know they can go back 5 years. He shouldn’t hopefully shouldn’t pass in that time frame). One of my grandma’s got screwed in this situation and the other grandma was about to lose her house, but she passed away just before. The other one is that if he for some reason passes away before he has to go to a retirement home, his house is one less thing we will need to take care of. Bonus is he won’t have to pay interest

Q1. Does anyone have alternate suggestions?

Q2. I assume we should loan him the money to pay off his loan first to reduce the number of players in the deal. Would that cause any issues?

Q3. I have purchased two homes in the past and refinanced 3 times. I know the paper work sucks. How much less would it suck without a realtor, bank, escrow?

Q4. I assume I would still want someone involved to help with the paperwork and process. Should that be a realtor or would a realestate attorney be better? How much price difference between the two? I have a realtor that we have used to buy and sell a house, as well as he was the one helping my dad purchase the house in question. I assume this process would be really simple for him and know he would give me a discount.

Note that there is no need for contacts/inspection/apraisals or anything else that is not legally required. No worry of our family screwing each other over. We are very close. In his mind, the house is already going to be mine when he dies and in my mind it is still his house and he can do whatever he wants while living there.

Thanks

submitted by /u/flyingsquirrel6789
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Hi all. Sorry for the long post, but hopefully someone can help out. I have looked around online and can’t find anything that fits this scenario with answers to most of my questions. The current plan is to purchase my dad’s house with cash. He will stay in the home and rent from me for amount he has been paying the mortgage company. We are going to buy it for the current loan balance and he will gift us the equity. The main reason for this is to keep the equity in the family for when he eventually has to go into a retirement home (I know they can go back 5 years. He shouldn’t hopefully shouldn’t pass in that time frame). One of my grandma’s got screwed in this situation and the other grandma was about to lose her house, but she passed away just before. The other one is that if he for some reason passes away before he has to go to a retirement home, his house is one less thing we will need to take care of. Bonus is he won’t have to pay interest Q1. Does anyone have alternate suggestions? Q2. I assume we should loan him the money to pay off his loan first to reduce the number of players in the deal. Would that cause any issues? Q3. I have purchased two homes in the past and refinanced 3 times. I know the paper work sucks. How much less would it suck without a realtor, bank, escrow? Q4. I assume I would still want someone involved to help with the paperwork and process. Should that be a realtor or would a realestate attorney be better? How much price difference between the two? I have a realtor that we have used to buy and sell a house, as well as he was the one helping my dad purchase the house in question. I assume this process would be really simple for him and know he would give me a discount. Note that there is no need for contacts/inspection/apraisals or anything else that is not legally required. No worry of our family screwing each other over. We are very close. In his mind, the house is already going to be mine when he dies and in my mind it is still his house and he can do whatever he wants while living there. Thanks submitted by /u/flyingsquirrel6789 [link] [comments]

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