Posted on: 14th Jul, 2010 08:09 am
My father-in-law was 1 of 3 co-owners of a beach house (fully owned); when he died, his 6 kids inherited 1/6 of his 1/3 share. The dads in the other 2 families (listed as owners on original deed) have also passed away recently, and we're unsure if their 1/3 passed to their wives or to their kids.
The property was valued at $750k in early '06, and we now need about ~$150k to build a seawall to guard against major erosion of this oceanfront lot.
What's the best way to think about financing the $150k project? I assume the primary options are either:
1. ask each of the 3 families for $50k upfront for the project, and let them figure out how to come up with that on their own
2. apply to a bank for a mortgage against the property, and add the yearly cost of servicing that mortgage to the yearly "dues" we pay to run the property (which pays taxes and upkeep).
What am I missing? What are the key items the bank/lender will want to know?
The property was valued at $750k in early '06, and we now need about ~$150k to build a seawall to guard against major erosion of this oceanfront lot.
What's the best way to think about financing the $150k project? I assume the primary options are either:
1. ask each of the 3 families for $50k upfront for the project, and let them figure out how to come up with that on their own
2. apply to a bank for a mortgage against the property, and add the yearly cost of servicing that mortgage to the yearly "dues" we pay to run the property (which pays taxes and upkeep).
What am I missing? What are the key items the bank/lender will want to know?
As far as I can understand, the wives and the kids of the other two deceased co-owners will be considered as heirs to their property.
In my opinion, the first situation for getting financing for the building a seawall is quite good. However, if one of the parties decide to take out a mortgage on the property to come up with their share of money, then the whole property will be used as a collateral and not just their share.
In my opinion, the first situation for getting financing for the building a seawall is quite good. However, if one of the parties decide to take out a mortgage on the property to come up with their share of money, then the whole property will be used as a collateral and not just their share.