When my dad passed away he left his house in my brother and mine's name. We split everything down the middle. My brother has lived in the house his whole life, never moved out on his own.
I have a mortgage of my own already. He doesn't. He's been making the payments since dad passed, unbeknownst to the bank. There is also a sentimental value to the house in that it's a log house my dad built with his bare hands. I don't know what the hell my dad did over the last ten years or so, refinancing, second mortgages. He didn't have his affairs in great order when he passed. But there is about $220K left to pay on the house. He said when he built it in 1980, his loan was for $140K. So in 36 years, he owes $80K more than what he started with. How does that happen? Granted, the home is worth more than that. I would ballpark an estimate of $300K.
So our options are:
1. My brother gets a loan, cash out refinance. Buys out my half of the equity and he has a house in his name, do with it what he wants.
2. If he doesn't get the approval for a loan, I sell my house, cash out re-fi my dad's house. Buy out my brother, my wife and I move in, he moves somewhere else. (Already asked I he would be interested in converting the basement into an apartment for him, separate entrance and all. But he's not interested).
3. We sell the house, split the profit, life goes on. It's literally the last thing my brother wants to do. He's never been anywhere else. Lived with roommates, etc. He's also 25 and needs to grow up.
The wrench in all of this, and I've kept it quiet around here, but my job could be in jeopardy. I won't go into details until there is some closure to the situation. But If I lose my job (end of July I'll have a better picture) I am in no position to take on a mortgage higher than what I'm paying now.
So to help with the burden of the payments, my mom moved in with my brother a few months back. We agreed that while we get affairs in order, and that with about $1500 a month in payments, my brother would pay $700, my mom would pay $500 (her rent she paid at her last place, and she's helping us out). I would pay $300. I'm not living there, I have my own bills, but my name is on the place so I feel entitled to help out.
I've been wanting my brother to get the ball rolling on trying to get this loan himself, but he's really dragging his feet, not trying too hard. I think he knows he won't be able to get it, but I want him to have first chance, and find out what exactly he has to do, and do it. I figure if the house appraises for a decent amount, the bank will give him a loan based on the value in it for the bank if my brother defaults on payment.
He hasn't been putting forth much of an effort to get a loan. My situation is up in the air.
Now my wife wants me to stop paying him the $300 a month I've been contributing. Of course I have to be the bad guy and tell me brother, because she won't. But I still feel obligated to contribute with my name on the place. So that becomes a fight because "I should side with my wife. Especially when it's her money too." She thinks if I don't pay him it'll get him fired up to come up with a plan. Shit or get off the pot type thing. Basically he needs to get the loan, and if he can't, be ready to sell if I lose my job.
Then there is the appraisal process, which again, makes me look like the bad guy. The house needs work if we have to sell it and make more of a profit. But my wife thinks its up to my brother to pay for repairs, do whatever work himself, because he's the one thats lived there and been a part of what needs fixing. But If we both are profiting from it, I should contribute, right? But If I end up being able to buy the house, my wife doesn't want us to help pay toward anything either, so it appraises for less, and in turn the buyout of my brothers equity is less. "He can fix whatever he want's on his own."
My wife, my brother, my mom whose input isn't always the best, but she's mom and feels the need to get involved. My job, money driving a wedge between my wife and my family. It's a recipe for fighting and hurt feelings.
What the hell do I do?