# Honest opinions needed please



## trishaanne (Aug 20, 2005)

So here's the deal...our house has been on the market six months and the only offer we got on it is for $250,000 LESS than we owe. We're doing a short sale, so naturally the guy low balled the offer. We haven't signed the papers yet because I didn't like the guy. The bank will most likely approve a low offer. SO, last night my neighbor called us over, told us he'd be willing to buy our house and rent it back to us for a few years until we're ready to move out of state. The rent he'd charge would be almost 2/3 less than our mortgage is. I'm extremely reluctant to do it because you never mix business with friendship, and he's a great friend that I wouldn't want to lose. He's an investor...has 3-4 other houses that he rents out. He wouldn't fix this one up yet, just let us stay here, and once we move fix it up and resell it. He would only replace the central air because that died 2 years ago. I'd love to stay in the neighborhood and it sure as hell beats moving in with my mom for a few years (I'd have to do something drastic to one of us if I did) or pay for a smaller apartment, which would be the same amount as the rent he'd charge us. I don't want to put him in that position of taking on another bill but he says he would just write it off as a loss on his taxes for a few years. He said he's not ready for us to move away yet! SO, what would any of you do? Would you consider it? Would you not do it? What are the reasons? I just want to get other opinions to see if I may be over thinking this or not. Thanks.


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## Headless (Sep 4, 2011)

Gee that's a tough one Trishanne. I think you just have to go with your gut feeling on something like that. If you have to sell and rent, to me this would be the better option. Moving is going to cost money as well. Good luck with whatever you decide.


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## debbie5 (Mar 2, 2007)

Go with your gut. Your gut is telling you not to mix friendship & business & I agree.
I'd take the offer and jet. You have worked so hard to try to sell the house...who the hell wants to go through that again?? BUT.....you still can get a different relator, one who will more aggressively market it.


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## BioHazardCustoms (Aug 5, 2009)

Having been in your friend's position and being screwed over by it, I have to say that if he is really a friend, don't do it. You'll end up losing a friend in the long run.


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## Dixie (Feb 18, 2009)

I guess my first thought would be - is he a good neighbor that you have become TRUE FRIENDS with and plan to keep in touch with no matter where you are, or is he a good neighbor that you enjoy living by, but would probably loose touch with after you move?

If you are basing the decision on the fact that you dont mix business with friendship then I think you really have to ask yourself what this relationship is. He is offering you one heckuva deal for you, and you would be moving eventually anyways.... I don't know, I really think I would do it. Sorry if that sounded distant/cold/loner-ish, but thats just a really great solution, I would find a way to make it work.


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## trishaanne (Aug 20, 2005)

He is someone that we would keep in touch with, most definitely! He is an awesome person. I really want to do it, and we could save more money by getting all our stuff out of storage and not paying that $180 a month. I know he's looking at it both ways..to help us out and to get his money back at a later date. Either way, we'd have to pay the same amount of money, whether in a 1 bedroom apartment or in our home. Hubby and I have to sit down and seriously discuss it. Jim (our neighbor) said he would have the papers drawn up tomorrow and submitted on Monday if we would like, just to give us peace of mind and to beat the December deadline when the tax laws change. In December (maybe January, not 100% sure) if you owe say 350,000 on your house and sell it for 110,000, you are responsible for the taxes on the other 250,000. That's ALOT of money! This is also my neighbor who deals with the haunters, comes to our BBQ's, invites us to his and who the haunters went to his house at 10 PM, in JULY, singing Christmas carols! He's also afraid that someone that bought the house may not be as accepting of his lifestyle that we are and make trouble for him.


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## hedg12 (Jul 6, 2008)

In my experience the trouble with doing business with friends only creeps up when one "friend" tries to take advantage of the other. Put down in writing who is responsible for what (maintenance, repairs, etc.), make your expectations clear & make sure you understand his, pay your rent on time, and be a good tenant. I'd say go for it.


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## Copchick (Apr 10, 2012)

hedg12 said:


> In my experience the trouble with doing business with friends only creeps up when one "friend" tries to take advantage of the other. Put down in writing who is responsible for what (maintenance, repairs, etc.), make your expectations clear & make sure you understand his, pay your rent on time, and be a good tenant. I'd say go for it.


I agree with Hedg12. If you are truly happy there, why not stay? If you have everything spelled out, there is less chance of any misunderstandings and miscommunication. It sounds like your friend is in the position to help you, just keep the lines of communication open. Good luck!


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## niblique71 (Dec 2, 2009)

The easiest way to make an enemy out of a friend is to do business with him/her....Especially a neighbor. 

If it buys you two years and the business arrangement is legally correct it could be OK. Better than some alernatives... But, this has the Huge potential of going WAY sour as well. You'll only know a year or two down the road how bad it could be, unless you fork over some substantial bucks to have the arrangement vetted out by a decent lawyer (NOT A FRIEND)...Hope my opinion helps.. Miss ya both...


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## Terrormaster (Sep 27, 2007)

Business and friends/family are NEVER a good mix. Karou and I rented our old place from her mother for eight years. It was always tense and extremely awkward. I had some unusual circumstances when I first moved to CT from LA. But you end up in a "I'm still comfortable here" state of mind while the other party expecting you to leave as agreed but because of relationships becomes awkward. You're in a tight spot and I'm a straight shooter. If you have a better offer than your neighbor/friend, take it - it's not worth ruining a good friendship over. But if your situation is as tight as you say it is (and no doubt because the housing market is in the crapper and is a buyers market) you might not have a choice. Take the route niblique suggested and bring in a third party lawyer to iron out the details in an unbiased manner.


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## VillaHaunter (Jul 13, 2011)

Being on the investor side of this kind of deal was a win/win for us. I was able to help a good friend stay in their home. They were able to get back into better financial shape and moved on when a better job in another location offered. We are still good friends. Be very clear on the terms and put them in writing.


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## DoomBuddy (Mar 1, 2009)

We are trying to buy a short sale. We had to sign papers saying we did not know the people and we have no deals with them. They could not buy the house from us. You might want to talk to someone about the law first.


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## trishaanne (Aug 20, 2005)

Yeah, we know that part of it too...gotta talk to the realtor to see what she says.


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## Troll Wizard (May 3, 2012)

hedg12 said:


> In my experience the trouble with doing business with friends only creeps up when one "friend" tries to take advantage of the other. Put down in writing who is responsible for what (maintenance, repairs, etc.), make your expectations clear & make sure you understand his, pay your rent on time, and be a good tenant. I'd say go for it.


Well I think you should take advantage of what your neighbor is offering to you. I agree with hedge12 also, if everything is down in writing and the both of you agree to certain items on who is responsible for what during the time you pay rent then everything should be okay.

You may want to have a local real estate lawyer look over the papers before signing anything. I think your friend would understand if you did that. Short sales are kind of tricky because the buyers sees or thinks your desperate to sell, so they will always offer you a much lower price than what you want.

You as a renter would also have rights as your neighbor becomes your landlord. It would relieve you from your overall debt and make it easier for you to save some money for the day when you decide to actually move. I don't think that I would sign anything that would hold you to some kind of length of time that you would be required to stay just in case something happens and you would need to move out at a earlier time than when you plan to.

So if you can work things out with your neighbor and you still think you can remain friends then I would say go for it, as well!


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## Haunted Spider (Sep 6, 2010)

The idea could work but the devil is in the details. I agree with others on the thought that dealing in business with family or friends is bad, and it is. Most of the time, better than 90 percent, things go south somehow. It may be you miss a payment of rent, or your neighbor just cant hold onto the house anymore due to the market, or you decide you don't want to stay anymore and he is stuck with the house. So many things could go wrong, and only a few could go right. 

If you decide to do it, make sure everything is in writing. Length of time minumum you get to stay, so in 3 months he can't move his daughter into your home and kick you out. Who will fix what and repair things. There are a ton of other things an estate lawyer would know to include. If you do this, hire a lawyer to do it right. Don't just let your neighbor draw up the papers. If he or you misses something, that will be the thing that causes the rift in the friendship.


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## trishaanne (Aug 20, 2005)

He does this for a living and has leases. We've already agreed to who would take care of what. The only thing I would have to work out with him is the length of our stay. If a perfect B&B opens up for us, I need to be able to jump on it and not be locked into a lease. He's doing this to help us out but also because he knows that he'll make his money back on it in a few years. We'd continue to stay here, he wouldn't remodel any of the stuff that needs to be done to get a decent price for it until after we leave but he would replace the central air which died 2 years ago. However, a realtor jut called...someone she brought over twice already wants another look, so this may be a moot point anyway. (Keeping my fingers crossed)


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## Haunted Spider (Sep 6, 2010)

Well good luck with the second look couple. If your neighbor does this for a living then he knows what he is getting into as well. He may also know that alot of people buying a short sale are not someone you would want to live next to so if he buys it he can keep a neighbor he likes, and not get a slum land lord who bought a cheap house and doesn't care what happens to it. 

If you feel confident in your neighbor and what he does, then go for it. Just remember you take a chance on loosing the friendship. If it is worth the risk, especially to not have to redesign your display in a new yard, then stay.


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## diggerc (Feb 22, 2006)

It looks like a win win on the surface You could wined up putting substantial coin in your pocket over the next two years the real pain could be a huge turnaround of the housing market that your neighbor reaps the benefit of or worse gives you the boot to sell.
yup think about what what you want discuss and get it all in writing. etc. etc.


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## jaege (Aug 23, 2009)

If you did it, do not just rely on the handshake to seal the deal. Get EVERYTHING in writing, signed by both parties, so that there is NO misunderstanding on anyone's part. Length of time you will be staying, price of rental, his obligations, your obligations, EVERYTHING. Let him know you want i that way so that there can be no misunderstanding.


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## TheOneAndOnlyKelly (May 7, 2009)

If you can get a third party involved so that you are not directly dealing with your neighbor with finance/landlord issues, that would be good. Not sure how that would work out, but if he has a business partner, you might see if you can go that route. Def. get EVERYTHING in writing first, no matter what.


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