Neighbor wants to sell me her house

[Jermell Shavers]

So today me and my neighbor were talking and she wants to sell her house to me but she said she is upside down and wouldn’t have anywhere to go if she did sell as she is retired and has limited income.

So I offered to pay her 35k the place is worth about 72k and we would agree she live out her last days and when she is gone I would take it over.

Does this sound like a good deal she would still pay for property taxes insurance and everything. I could still use the property for a Heloc as I would own it free and clear. What are the downsides to this for me ? And her just want to see it from all angles

[Lynnette E.]

Plus you really want to be careful about giving someone a life estate in property.  They will not insure you, only themselves, if they even buy insurance and the do not spend their money on maintenance.  The place will be your new money pit.

Plus people live a long time now.

MY neighbor is a schemer.  She went 1/2 on a very expensive lawn mower with the stipulation that an elderly neighbor paid for 1/2 and she will mow his lawn for the rest of his life.  And the lawn mower is hers when he passes away.  He was 92 years old when they made the deal.  His daughter was furious.  Well now he is 95 and doing quite well.  Drives himself from TN to KY and back when he wants to visit.  And she HATES doing his lawn each week!  I am rooting for him to live to 110 just to do her in.

Save life estates for your grandma, or very close relatives, not neighbors.