Dad retiring, taking out second mortgage, putting house under my name?

**TWhitman** · 08-03-2010, 07:19 AM

Hey guys -- I'm sort of new to this whole thing but here's the quick rundown: My dad is turning 70 years old and has retired this year. He's "selling" me the house, where we'll get a lower interest rate from 6.0 to 5.1. He'd like to pay off some credit bills and not effect the cash flow he has from his 401k, savings, etc, so that's why hes taking the second mortgage out.

Besides the fact that i'd be paying for the 30year replayment plan, is there anything I need to take into account such that I may not be able to sell the house for some reason, or if this effects me from buying a second property because owning a home may require me to put down a larger down payment for a second home?

Any advice would be greatly appreciated.

-Tom

**MaritesT** · 08-10-2010, 01:12 AM

I think you need some specialist regarding of this problem. In able to help you in the right track. And you can assure that this could end up nicely in any decision making you can make.

**Greg** · 08-10-2010, 07:20 AM

What happens when you want to buy a house to live in? Do you make enough to support 2 mortgage payments? A second home usually requires 20% down payment.

Be careful helping dad out. It could cost you in the long run. Has your father looked into getting a reverse mortgage to supplement his cash flow?

**agentsranking** · 09-22-2010, 09:15 AM

You will likely be creating a very difficult situation for yourself when you decide you want to purchase your own house. A few years ago, it was easy to buy five or six houses without any problems but times have changed and securing a second mortgage may be nearly impossible.

Another thing to consider is that if you get into any financial trouble such as lawsuits, liens, judgments, etc. your Dad's house will be at risk for attachment. Just keep this in mind. For all intents and purposes the house will be your house and it can then be a target for creditors.