He wants to purchase a mobile home with cash paid in full but does not have a Ca I.D. which I believe is needed to do so. He's undocumented, but that's another story so I'm not interested in opinions on that. He wants me and/or hubby to purchase it in our name and then rent the space it's on because him, my MIL and SIL are renting right now and really want to move. He will pay us $1000 for the favor.
I'm leaning towards no because I'm concerned about how it will affect us if we want to buy a home ourselves in the future, how it will affect our taxes, and my medical insurance is income-based. I don't know if buying a mobile home would affect that too because if they find out, they might wonder where I got the cash to buy it. I also have a judgement on my credit from a very old credit card. I'm concerned that the creditors could possibly place a lien on the mobile home should I purchase it and they find out.
Would you do this? Do you think it's worth the $1000? I feel bad saying no but i don't really want to get tied up in this. I wouldn't mind just renting the space in my name but the purchasing is the thing i'm worried about. Does anyone know if the name of the person renting and buying has to be the same? Anyone who knows about mobile home buying or how it might affect us would really be appreciated. If I've left anything out or didn't clarify just let me know and I'll add more info. Thanks for your help!
Thanks for all your answers. I did discuss with my husband and explained to him everything I said here and he passed the info along to his dad. Thank God they came up with another solution so I am just going to help them with applying for the rental space only, not buying the mobile home.
No, I wouldn't do it. There are just too many possible problems, issues and concerns.
Yes, if there is a judgement against you, they will put a lein on any property you own.
I dont think you should.
Lot's of things could go wrong, and you will be responsible. If you are up for owning a mobile home and following the park rules and tax laws, go for it.
Lot's of parks wont allow the owner to rent out the mobile home.
If you do this, you must accept that it WILL come back to bite you. You must be prepared for that.
I think you've answered your own question. You have many reasons to not do it- each on its own is enough to say no. It's hard to not help family, but this could really harm you going forward. He needs to find another way.
And as someone who used to establish judgments for child support, I can tell you that more times than not, title companies will insist the judgment be paid before closing.
Good luck to him.
You have a lot going on in your post.
To answer your question if I would do it. No. I would not.
1. Your FIL wants you to "buy" a property/mobile home for him because he's not legal or undocumented.
a. Just because he is "Undocumented" does NOT mean he cannot buy it himself. He can check into a ITIN (Individual Taxpayer Identification Number) and YES. Undocumented people get them.
2. You have a judgment on your credit report - okay - they fall off your credit report after 7 years, and in some cases 10. They (the collection agencies) only have a finite amount of time to collect the debt - it's called a Statute of limitations. Depending upon the debt - they have 4 years from the last action to collect. If it's been longer than 4 years - they, by law, can no longer collect on the debt.
3. Payment for doing something - especially this "deal" would sound like wrong in my book. Almost like a bribe....
4. your medical insurance....contact your policy holder and find out what would happen if you purchased property. Never know unless you ask.
5. Call the IRS and ask them what the tax implications are on property - even if paid in full - I'm sure there are state and local taxes that will be due...EVERY YEAR the property is in your name.
6. Insurance on the property - how much is it going to be and who will be responsible for it???? just because it's paid in full does NOT mean that it does not been to be insured....
I would say no.
No, I wouldn't do it. It's illegal six ways to Sunday. Everyone else pretty much covered why. I hope that your husband respects that this is a bad, bad, bad idea and doesn't do it if you ask him not to. And I really hope you ask him not to. I get that he's your husband's father, but you two are NOT obligated to do this for him.
Your fil has legal avenues he could pursue to get legal housing. He needs to follow them.
No this is a very BAD idea.
no-the overall liability is too great.
I would not do it because the risk for you is greater than the gain. Just because it's family does not mean you are obligated to do so. What's in your name belongs to you, so does you become the responsible party. Creditors or lien holders won't understand "it's in my name but it's not really mine. I don't co-sign or put anything for anyone else in my name. Relatives tend to think this is the easiest solution, but never consider what obligations it places you under. Tell him you really wish you could help, but you've got credit issues of your own.
I would not.
No other reason than that money and relatives usually don't mix well. No matter the circumstances.
What does your husband think? It's his father, right?
These things never end well, despite the greatest of intentions. Say no.
If I didn't have the questions you have yes I would. But since the same questions would be my own I would say no.
Family + money+credit= nothing but issues down the road.
No, it WOULD be considered an asset and you would more than likely lose your insurance, be responsible for the taxes, creditors would very likely put a lien on it, so when it is eventually sold they would get their money first, and the fact that if something goes sour you are still related and would undoubtedly have a broken, if not scarred relationship to deal with.
Because your income is effected by this purchase you have to say no.
A friend of mine is on disability. Her brother has stolen her identity due to their SS #'s being very close to the same. He bought a house in another state and she got cut off SSDI. They will see your purchase and will stop all benefits due to this unreported income.
You have to say no.
No, for many reasons. For the reasons you listed, because you don't do business with family because if it falls through too many personal emotions are involved to keep clear headed, and if you're eluding to the fact that he may be an illegal that's another reason. If he gets caught, so do you. IRS is not a kind agency, nor is the NIS. I would tell him no and figure out the problems facing him and his family quickly and legally before too many people end up involved. He should be considered about you guys. I can't imagine my father or FIL asking me such a thing no matter the situation.
K. B
mom to 4 including triplets
The only thing I know is that some mobile home parks don't allow renters. The owners of the mobile home have to live in the space so you should check that out. And even if they do allow renters, the renters might have to be approved by the park management. If he's undocumented, you could run into problems there to.
Also, you might have some tax liability for the purchase of a "second home." Also, the IRS might wonder why you're not reporting rental income. It is possible that your creditors will put a lien on the home if you have an outstanding judgment.
I would say no and I would tell them that it's because of your outstanding judgment.
You have to look at actual liability. It will not effect your income because you are not required to declare it as such.
If you have everything listed here your only potential liability is for the rent for the space since I assume that must have you listed since you are the owner. So if you can trust he will always pay the rent on time this seems to be low risk.
Oh, insurance!! Make sure he keeps insurance on the property. If someone is harmed on the property you will be liable for the damages unless you have insurance to pay that.
Many people from out of the country buy property in the US. Can he consult a friend in his shoes to see how the house/mobile home was purchased (if he knows anyone)?
Sounds like you have enough reasons to gracefully back out.
