Are we getting the horse a bit back of the cart, here, possibly? Have you bought your house yet? I assume not, in that you don't have mortgage set up, it appears. I'm not familiar with the housing situation generally, and certainly not with what's going on in your area, but the housing situation in many parts of the U.S. is in a real mess. Many bought several years ago, with small equity, and paying something like 1.5% interest directly at the time, but the actual amount being charged was much higher, say, 6% ...with the extra being added to the principal owing! The contract specifying that the rates were to be renegotiated after a certain number of years. When the amount that the mortgagees actually needed to pay became apparent on renegotiation ... the people couldn't pay it. So the house went on the market. Along with thousands of others in the same boat. Those (what many of us would call "spurious") mortgages were peddled over wide areas. Including to a Canadian bank in which I've held shares for 41 years, during which time share price advanced from $4.20 to about $106. and change, last May. Unfortunately, it seems that my bank had also backed an insurance company that had underwritten many of those lousy mortgages. As you know, North American stock markets are down a substantial amount during the last few months - but nothing like more than 40%! You can understand my feeling that I'd more or less like to use those guys who dreamed up that shady way of doing business as targets at a shooting range? The speed at which the Fed began freeing up money when this problem surfaced a while ago, and has moved on it again since, including today, in concert with the Canadian central bank, and some European ones the same, leads me to think that there's a lot more trouble yet to appear in the housing crisis in the U.S. Remember the Savings and Loan crisis of something like 30 years ago? Some are opining that this may turn out to be worse. If I were you, and it's at all convenient, I think that I'd be sitting on my money for a while. By the time house prices get down about as low as they may be about to go ... ... perhaps you'll have had the opportunity to have saved most of that $30,000. shortage, especially if you go into fairly heavy-duty savings mode in the meantime ... ... in which case - perhaps your problem may well have disappeared. Maybe more than disappeared ... for possibly the house you want may have had its price dropped by that $30,000. ... possibly more? And you may well have more than the "extra" $30,000. on hand ... ... Hey! maybe you can have enough extra down payment to be able to avoid mortgage insurance! The loss in value of that stock of mine since last May is about half of the amount that you're short. But I've held it for 41 years, so I guess I'm more or less too much attached to it to sell it now (and this is not the time to sell it, in any case - might be time to buy more). Just some food for thought. My daughter's wanting to buy housing in the Phoenix area. I've been suggesting to her for months that she keep her money in her jeans for a while. She made an offer last year, there was $5,000. difference, with neither stubbornly willing to spring for the diff. Within a few months, after she returned to her former location in Toronto ... ... she told me that a re-valuation of the premises had come in ... ... at $20,000. lower. Now she's back in Scottsdale, keeping her eye on the situation. Maybe even both eyes, on occasion? Sitting on her money ... still (I hope). I hope that you're having a great old week, at your "house" - (wherever that may be, at the moment!). ole joyful P.S. I'm not as upset as it sounds - when dealing with much of business in general, and the stock market, in particular, if one were to sweat the small stuff (or take a short-term view) ... ... one would have one's fingernails chewed down to bleeding, a good share of the time. Closing on age 80, very thankful to be enjoying good health, with only a small portion of needed health care payable directly, and fairly sure that I have sufficient assets to carry me through the remaining days of life ... ... with some residue for charities and offspring ... ... I'm a happy man! o j P.P.S. For many families, buying their home is the largest contract that they ever make. I strongly suggest that you make it your business to investigate the current housing crisis in the U.S. thoroughly, up, down and sideways, during the coming months, including prospects in your area. There may be a hurricane approaching. o j

cordavamom: "He said as long as the house had power he could do an inspection on the whole house, he'd turn on the water etc. The bank is okay with him doing this. Winter is well over, (it's 77 degrees here today). the bank has made no mention of my son having the home re winterized if the contract falls through -- is this normal?" I can't speak for what is normal with a bank. That said, obviously if the house has power and gas, the electrical and HVAC system can indeed be inspectedand of course, roof structural, which are non-utilities dependent. However, IMO, the HI is a fool to turn on the water....as he is bargaining that there are no problems with the plumbing that could cause property damage. Granted, with a 3 year old home, the chance of that being the case is less than with an older home...however, with a foreclosure, all bets are off as far as the norm...as all too often foreclosed properties are damaged due to owners who want pay-back because of the foreclosure (such as those who were duped by the predatory lenders) or, in a divorce, people can get mighty vindictive. Sometimes the damage is obvioussometimes hidden. We had neighbors who divorced. They had a beautifully upgraded home, very well maintained; the hubby was the original owner of the house brand new, pre-marriage. They split because the wife was having an affair; she continued to live in the house with the children...then had affair guy move in with her. Needless to say, soon to be X was VERY upset...the house went into foreclosure. Wife and affair guy moved out. The bank held an open house through a realtorand we were shocked to see what had been done to the insidedamage everywherethe couple who bought it spent thousands on repairsand he was a contractor..so labor was not an issue. That said, your son needs to make certain that the HI carries errors and omissions insurancethat way, if any damage occurs once the water is turned on, the HI has the financial resources with which to cover it....in addition, your son should make sure that there is some sort of condition in the HI contract where your son cant be held for damages due to the HI turning on the water when he hasnt a clue as to whether of not there is a plumbing problem Last but not least, the water should be on for at least 48 hours prior to inspection, in order to determine if there are any leaks as water somtimes needs a while to circulate before some problems can become evident Last but not least, as you son has no claim to the property, the bank, as the owner/seller would be responsible for any required "winterization", unless your son signed something agreeing otherwise Hope this helps

Most RE attorneys will not facilitate a "Subject To" closing, because they feel like they are helping to facilitate a civil crime. The current mortgage has a Due On Sale Clause which means that if the deed is transferred, the current mortgage must be paid in full. This clause was added in the 80's when interest rates skyrocketed and people found it beneficial to take a note subject to, at the current interest rate, as opposed to getting a new loan at the current, high interest rate. I know an investor that does Subject To deals all the time, and the lenders have never called the note due. But there is always that chance. He only is in posession of the home for a very short time, as he immediately rehabs and sells them. Unlike you would be. Another thing to think about... what is going to happen when you go to buy your next home and the lender finds that you have another mortgage? You will probably not qualify. And if you do, it might be considered a second home, which raises other issues. I personally would not do it... too much risk. If you do go through with it, set up a banking account in your name where the drsfts for the mortgage payments will be coming from, so the bank does not see the change. You will also have to figure out how to fool the banks as far as the insurance policy changing names, but the house was never sold. This is a major way that the bank will know that the home has changed hands. As you can see, even if no one has ever been prosecuted for doing this kind of thing, it is shady at best.

"Early twenties tends to be when you have some truly wonderful opportunities to explore life and make your way." If that's what you want fine. I wouldn't change a single thing about my life. I would make the same choices. I enlisted in the AF at 18, had DD at 20, married DH at 21 (he was 22 and just out of the AF) and we bought our first house within the year with help from his father, had DS about 8 months year later and I got out of the AF at his birth and started college when he was 4 weeks old (It was DH's last semester*) . My FIL loaned us $3500 on a $38.5K house which we repaid (he only asked for what he would've made on the money in a Money Market account) when we sold the house for $46K a few years later. Life's been good. Kids are grown and on their own, but are renting because of house prices here in northern VA. I got my degree at the age of 32 (life happened), but I make great money 17 years later. We're on our 3rd house and even in the depressed market it's worth $500K more than we paid for it 14 years ago and we owe very little on it. I'm so thankful that my FIL was willing to take a chance on his 23 yo son and the son's 22 yo wife of 1 year and loan us the money for a down payment on that first house. Those were great times then! DH was in college with only the GI bill and Ready Reserve income, I was an E4 in the AF, we had one child and were trying for our second. I loved that first house - our 1000 sq ft rancher on 1/2 acre in Gloucester County VA. It was white with black shutters, 3 BR and 2 baths and a one car garage with washer and dryer in the garage. Now DH and I have our retirement almost completely saved for (and still 10 more years to put away more money) and we have money to help the kids out (but not too too much, which wouldn't be good for them), plus money for vacations. Our credit history/score has always been perfect. To get back to the topic at hand, there has been good advice for how the son can get a credit "history" fairly quickly, and I would advise that route over buying the house for him outright, or co-signing.