Seller wants to stay after the sale

[Dan Marriggi]

Seller wants to sell her mortgage free home to me.

Haven't decided on a price yet. She wants to stay living in the home until her death. She is 80 years young.

She will cover all utilities but doesn't want to pay much rent ($200) or so.

I will be responsible for all typical homeowner expenses plus repairs and maintenance of the property.

Even if I buy at a discount price, I'd be subsidizing this "renter" for the rest of her life.

Any thoughts on structuring a win win offer ?

[Rich Baer]

@Dan Marriggi

Here you go. Purchase price $375,000. She actually conveys you a life estate with no powers. You are the Remainderman. That vests the title in you. You give her a $300,000 mortgage. You give her $200,000 or so upfront. Terms of mortgage state that she get $10,000-$15,000 each year until her death with a cap. 5 percent mortgage.You can sell the note and recoup most of your costs.You make the monthly payments to the note buyer. That way you both profit from the deal. Also talk to your insurance agent about insuring her life. Just off the top of my head.