Don't Jeopardize Your Family For In-Laws
Deborah says her in-laws had their daughter purchase a home for them since they couldn't qualify for a mortgage. Deborah's husband now wants to cash in the equity in their home to pay off his parents' home.
QUESTION: Deborah in Alabama says her in-laws had their daughter purchase a home for them since they couldn’t qualify for a mortgage. Deborah’s husband now wants to cash in the equity in their home to pay off his parents’ home. Dave tells Deborah this is a really bad idea, and his parents probably need to sell their house.
ANSWER: I think it’s a really bad idea. I think it’s stupid. I think his parents ought to sell their house. Nobody in his family is going to like me, and I can probably live with that. They could live in rental property. And then they save up money and they get their act together, which it’s way past time for them to do, and they can buy a home in about three years. It’s probably time for them to grow up and learn how to handle money, isn’t it? That’s kind of harsh.
At what point are you guys going to look up and go, “We don’t have an extra $20 million lying around?” If you’ve got an extra $20 million and want to write a $100,000 check and pay off Mom and Dad’s house, I think you should do that. But I hear a baby in the background, and I hear a man getting ready to leverage his personal home up to his eyeballs, and when he loses his job, now this baby doesn’t have a place to live because his 61-year-old father can’t get his act together. No way. I’m sorry if that sounds harsh, but what angers me here is there is no way I’m going to put my children’s well-being and my grandchildren’s well-being at risk because I did something stupid. Who are these people?
No. I just think it’s a really bad idea. I think you guys are going to end up losing your home.