I'm hitting a dead end trying to get information on this topic. I'm about to file Chapter 7 (long story I don't want to get into) and I will be surrendering my home which has lost 30% of its value anyway.
I've been lucky enought to be able to find a new job now that will move us back close to our extended family (it's my wife and I and 3 kids). I will have a pretty good income (just over $100k), but will obviously not be able to buy a house.
My parents have never made much money, but through frugality, they just paid off their house of (they are 56 years old), and have no other debts and a great credit rating. In order to help us get back on our feet, they've offered to buy a home and then "rent" it back to us. I'm going to be able to provide about $10k to help with the down payment, but they will pay the rest with equity from their home, which is worth about $160k. (fyi, we're looking in the $180 - $190k range for homes).
I would much rather see if there's another way I can take advantage of this generosity while sharing some of the risk. My dad bought and fixed up a few houses several years back with a couple of his friends. They financed these through some kind of shared mortgage. My dad suggested that there might be a way for us to share a mortgage rather than have him buy it and rent it out to us. This would help him avoid higher interest rates from rental property and would make me feel better about the transaction. He said his current house, or part of the value of the home, would serve as collateral on this mortgage (not sure how that works).
So my question is has anyone heard of anything like this post BK? I just assumed my name on any kind of loan would be worthless, or that i might not even be allowed to do it (my credit history and score was really good until the past two years when things happened that led me to this point). I also wondered if having me as a cosigner with him the primary borrower would be allowed or not. He's worried that given his low income he might not even qualify for what we're looking for and me cosigning could get us to where we need to be.
Any experience or insights on how best to use this kind of opportunity after BK would be greatly appreciated.
I've been lucky enought to be able to find a new job now that will move us back close to our extended family (it's my wife and I and 3 kids). I will have a pretty good income (just over $100k), but will obviously not be able to buy a house.
My parents have never made much money, but through frugality, they just paid off their house of (they are 56 years old), and have no other debts and a great credit rating. In order to help us get back on our feet, they've offered to buy a home and then "rent" it back to us. I'm going to be able to provide about $10k to help with the down payment, but they will pay the rest with equity from their home, which is worth about $160k. (fyi, we're looking in the $180 - $190k range for homes).
I would much rather see if there's another way I can take advantage of this generosity while sharing some of the risk. My dad bought and fixed up a few houses several years back with a couple of his friends. They financed these through some kind of shared mortgage. My dad suggested that there might be a way for us to share a mortgage rather than have him buy it and rent it out to us. This would help him avoid higher interest rates from rental property and would make me feel better about the transaction. He said his current house, or part of the value of the home, would serve as collateral on this mortgage (not sure how that works).
So my question is has anyone heard of anything like this post BK? I just assumed my name on any kind of loan would be worthless, or that i might not even be allowed to do it (my credit history and score was really good until the past two years when things happened that led me to this point). I also wondered if having me as a cosigner with him the primary borrower would be allowed or not. He's worried that given his low income he might not even qualify for what we're looking for and me cosigning could get us to where we need to be.
Any experience or insights on how best to use this kind of opportunity after BK would be greatly appreciated.
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