My Financial Albatross - What Now?

[cschin4]

Recently, I made the biggest financial mistake of my life. We previously lived in an old home with lots of problems. So, we decided to move rather than undertake fixing it up. Anyway, I didn't adjust to the new neighborhood as well and missed the old. So, I thought that it would be reasonable for us to repurchase the old home and completely rennovate and then sell our current home and move back in. Fast foward.
I completed remodeling the home. But, then the economic collaspe and dropping housing market. Unemployment is up and people aren't buying. I put both our homes up for sale and couldn't sell either one. So, I left the house on the market. Then, my widowed mom was having problems in her rental apt. with unruly neighbors, alot of partying, etc and she even had her car vandalized. So, 2 months ago we had her move into the remodeled home and she is paying a small amount of rent. And, now even though we remodeled, we are still having some problems with the home. Water in the basement, etc. So, stupid, stupid, stupid is all I can say.
But, what now? Just ride it out and keep it going as long as my elderly (78) yr old mom lives? But, if I sell now, she would have to move again so I don't want to put her through that either. I would like to have some plan. Eventually, I just want to sell it at any price and be done with it. Suggestions?

[mdcrim]

Can your mom kick up the rental amount? Pay you fair market for her rent (she'd have to pay rent SOMEWHERE)?

[MyLifeFinance]

If you can find a buyer or a renter that will pay full monthly prices for the house, you may have to end up choosing between sending your mom elsewhere or destroying your finances. Not an easy choice, but at the same time you have more time here left than her (not trying to be pessimistic, just honest) and you have to decide what will be best for you and your family's future if you stay stuck in this position.

[project15]

Could she live with you and you sell one of the houses?

[cschin4]

Yes, I think that is probably what will happen down the road. But, she still wants her independence and she can afford at this point to pay the household bills. I pay the taxes and maintenance. But, I am concerned that maybe I have gotten in over my head. She pays the same rent she paid at her rental apt. And, she does buy my kids plenty of stuff. I probably just need to ride it out at this point. However, i am worried about the economy and all the "what ifs".

[project15]

Originally Posted by cschin4

Yes, I think that is probably what will happen down the road. But, she still wants her independence and she can afford at this point to pay the household bills. I pay the taxes and maintenance. But, I am concerned that maybe I have gotten in over my head. She pays the same rent she paid at her rental apt. And, she does buy my kids plenty of stuff. I probably just need to ride it out at this point. However, i am worried about the economy and all the "what ifs".

Just like with teens moving into adulthood, independence only comes when you are financially independent. Seems like she's not paying as much as the fair market value for this whole house which is normally fine if you can afford to help her out, but it seems as though times are changing with your ability to afford that.

[cschin4]

Just like with teens moving into adulthood, independence only comes when you are financially independent.

Good point. She is getting older and has been going on spending sprees. She is responsible at this point and pays all her bills in full (as far as I know). She does seem to think she has a lot of money when she doesn't and buys my kids way too much junk they don't need and herself as well.
This actually may work out OK in the long if the housing market stabilizes a bit and the market recovers. As long as she can pay the bills of heating, cooling, water, etc then it really shouldn't cost me all that much to keep it maintained besides taxes and insurance. But, if she gets to the point where she can't pay those bills then I will have to put the home up for sale.
Unfortunately, if she moves in with me, we would have to sell her household FULL of antiques and collectibles that she has. I don't not really like or want that stuff. She could bring some of those things but the rest would have to go. I am sure that would be quite upsetting to her to have to part with that stuff.

[cschin4]

Update - What a difference a couple of months make! Anyway, after much prayer and discussion with my spouse and also with mom, we finally came to a decision. I really have always loved my first home that I remodeled and the kids missed the old neighborhood. Anyway, the housing market was recovering so we decided to put our current home on the market. And, we sold it within a week at a great price! Also, my mom who was living in the remodeled home thought she would rather live in a smaller place. So, fast foward, her old landlord kicked out the trouble makers and wanted her to move back. We went in and painted and spruced it up and it looks great. And, she was very comfortable there and choose to return. So, she moved early this week and we are moving out next week. I also fixed the water problem which wasn't the big deal I thought it would be.
So, sometimes you just have to wait for the right time and especially God's timing as I do feel like this is the best move for our future.

[Broken Arrow]

Glad to hear it!

[Ima saver]

That is good news!!

[creditcardfree]

That is good news! I'm glad to know it worked out for all of you.

[FrugalTexan75]

That is awesome!

[LuxLiving]

Phewwwwww!

[cschin4]

Moving day! Will be a long day! Then I will have to clean the house we moved out of and the actual closing is next week. On top of that I am having surgery on my foot next Thursday as well! I really like to keep things as crazy as possible!