Real Estate Advice

[OilKiller]

Thanks guys...The bank, funny enough, is a Calgary bank: Bridgewater Bank.

[onetwo_threefour]

Unfortunately I only see maybe half a dozen Bridgewater mortgages a year, so I can't say what their assumption policies are. Having said that, they are a relatively small lender, and in my experience, the smaller the lender, the more risk-averse they are with respect to assumptions (often because they take higher risk mortgages in the first place) so I would anticipate that they would either not allow assumptions at all or would insist on qualifying the buyer.

[algernon]

Originally Posted by OilKiller

I thought you didn't have to qualify to assume mortgages in Alberta? I know I've heard that several times. Is this only some mortgages or is this something that's been changed?

My stepson loves the house and the neighborhood, as mentioned. He doesn't care what the house is worth or what is owing. He wants it. It's not about financial sense to him it's about the house and the neighborhood.

Good call.
Why fix the mess you got yourself into, when you can have a 22 year old kid eat the losses?

[OilKiller]

Originally Posted by algernon

Good call.
Why fix the mess you got yourself into, when you can have a 22 year old kid eat the losses?

What's with the posts around here lately? WTH are you contributing to this thread with this comment?

It's his own choice. He knows exactly what is what and I've told him it's not a good idea already.

[photon]

You could do some kind of rent-to-own or wrap mortgage, where you still hold the mortgage but there's an agreement between you two regarding a fair deal. I don't think taking advantage of someone's desire regardless of their financial sense is a good idea for a couple of reasons.. there's probably a win-win here, and that's something that could cause a lot of bad blood down the road as he becomes more financially aware down the road.

You want to get out of an incomplete house, he wants a place to live.

Work out a rent-to-own kind of deal where you still hold the mortgage for 5 years, and he makes the payments. You save extra for a period of time, then use that extra to complete the renos on the house. In 5 years you have some way to end the deal, he buys the house outright and the extra payments he's made go towards the down payment. So at the end of the deal you've helped him buy the house, and he's helped you get the time you need to finish the house.

Or some permutation of that kind of deal where it's fair and everyone wins.

[algernon]

Originally Posted by OilKiller

What's with the posts around here lately? WTH are you contributing to this thread with this comment?

It's his own choice. He knows exactly what is what and I've told him it's not a good idea already.

I guess I'm mystified that you take Edmonton trash talk so personally. It's CalgaryPuck, not EdmontonIsAllrightPuck.

That, and I think you know that you are in a tough spot, and want to take the easy way out, although you've had some solid suggestions offered to you in this thread. I don't see a rich developer coming in and giving you fair price for an incomplete property, instead, I see the developer smelling blood in the water and hosing you further (not to mention that re-development probably tacks on 20-50K to the cost of the new project).

If you can get the place "livable" you may have a chance at cutting your losses. I don't understand why you'd want to pass the problems on to someone who could qualify for a mortgage on their own, especially if they have the wherewithal to fix it themselves.

Have you considered having your stepson and his friends get the place fixed up (while you stay), then have it appraised and 'gifting' him a down-payment?

[OilKiller]

Originally Posted by photon

You want to get out of an incomplete house, he wants a place to live.

No, I have lost patience with the house and want to move on. I'm tired of living in a construction zone and it didn't work out. If there is a way out, I will find it, if not, then I'll bite the bullet, make it work as long as possible and go from there.

He doesn't just want a place to live. He could easily live pretty much wherever he wants. He just really likes this place and location and would be willing to deal with the cost of it (knowing full well the mortgage is more than the house is currently worth) and wants to fix it up. He likes it and would like to stay. He currently stays in the basement here.

I doubt we'll end up doing that because I don't want to see him get in over his head, but he swears up and down this is what he wants. Again, doubtful it will happen anyway.

This thread has really taken some interesting turns and I think it's best if we just moved on. algernon, I have no interest in whatever you have to say after your completely disrespectful comment, so don't bother.

[photon]

Originally Posted by OilKiller

No, I have lost patience with the house and want to move on. I'm tired of living in a construction zone and it didn't work out. If there is a way out, I will find it, if not, then I'll bite the bullet, make it work as long as possible and go from there.

I get that, I've been there too and it's highly annoying. My only point is that it sounds like there might be a solution there, and I think that you can make it a win-win situation with him if you played with the numbers and some time.

And check out the REIN site I posted, I personally spoke with a few developers (not in Edmonton though) that belong to REIN that have helped people out that were in an undesirable situation.. rather than taking advantage of them they developed it and made sure the person got a fair price. Some people out there are ok with making a little less to find the win-win. Though I understand that they aren't overly common.

[OilKiller]

Thanks Photon. I will check that link out.