I remember the very first house I listed for sale as a realtor. It was an all brick 2 bedroom 1.5 bath house with a one car garage. It had an un-finished walk up attic that would be perfect for a future master suite. As I recall, it was listed for about $95,000 and the year was 1987.
The buyer was young paralegal at a big law firm. She’d worked diligently saving the funds necessary for the down payment and closing costs. And, she was about to take out the biggest debt of her life, she was happy and she was also in love.
He worked in construction and had bad credit. I can’t remember what he looked like but I do recall what he asked. He wanted her to put his name on the deed since he’d be living there with her and paying half the mortgage. From his perspective it made sense because he was also going to be making improvements to the house – like finishing that attic.
But, her attorney/boss became incensed when he found out the plan. And, for good reason. She would be giving up control of her biggest asset to someone who had not committed much to her. He could control what happened to her life, with no risk to him.
After all, what would happen to him if he decided not to pay half the cost of the house? Nothing.
Or, what if, ten years later, they broke up and she wanted to sell the house and he said, no. She’d be caught.
Today (even with the recession), that house is worth more than $300,000. What if she wanted to sell now and he’d moved out after year one and paid nothing? She might be forced to give him half the proceeds ($100,000+) with the sale of the house.
The whole situation begs the question….. Why would you give someone control over your biggest asset when they aren’t responsible for the liability?
Don’t do it, Girl. If he can’t manage his finances, don’t give him yours.
______________________________________________
http://www.freefloridafun.com/
No comments:
Post a Comment