Should We Buy Mom's House?
Christina's parents have made some bad financial decisions. Her mom wants her to buy their house. Should they do that, or should they move into Christina's house and sell the parents' house?
QUESTION: Christina in Phoenix and her husband are debt-free, but her parents have made some bad financial decisions. Their $125,000 home was paid off, but they borrowed against that house for home improvements and now owe $45,000 on it. Her mom wants her to buy their house. Should they do that, or should they move into Christina’s house and sell the parents’ house?
ANSWER: I would not own their house, but I would sell it. Right now you are long-distance landlording. I would sell the house. You told your mom not to borrow this money and tell them you are not buying this house. It may sound cold, but I guess if they become homeless you can help them. But I say they need to roll up their sleeves and pay off this debt.