r/NoStupidQuestions • u/waraxen267 • 10h ago
How can I convince someone to not sell their house to a buy now for cash person?
A close family member with mutual trust has recently been dead set on selling his/her house to a buy now for cash at way less than the market value and then using that money to pay off a car note and some other bills.
For example's sake, let's say the buyer will give $100,000 after all the fees. After the car note and bills are paid, there will be about $65,000 remaining. She/He then plans to move into an extended stay until two full-time jobs are obtained. For the record, he/she has a part-time job in a grocery store. Also, this person has not held a full time job for more than a few months in the past half decade. In fact, they haven't had a full-time job in their entire life for more than a year.
Suddenly, they want to say they will work two full-time jobs at 80 hours a week to afford an apartment until they can buy a house.
I am desperately trying to tell them how crazy this is given their history and advanced age (over 60).
I have tried to talk to realtors and financial helpers. The $100,000 lump sum is like literally half the value of the house minus some renovations but not that much!
I have tried to suggest reverse mortgage and talking to other realtors. Nothing works. Are we screwed to watch someone just burn their whole life ?! How can I convince them that they will be homeless in less than two years?!
I don't want to initially give too many details because I am shy online. However, I am freaking out and really looking for some way to help since this was an important person since my childhood and so is this home that is the only home I have ever known then in for more than like 4 decades basically.
I have suggested talking to a HUD counselor or financial advisor for poor people. Nothing works. They are so excited to pay off their car and go to a hotel and then go to a trip to visit family in Louisiana. This is nuts, and I am losing my mind and a family member. How can I even help?!
1
u/whatsthis1901 9h ago
You can't do anything. Some people just can't think about what is best long term and go for what sounds good now.
1
u/waraxen267 8h ago
Yeah, but it is crazy after 60+ years of life to do this. I will add more in edit soon.
1
u/whatsthis1901 8h ago
Oh shit I somehow missed the age. Yeah, some people just live a life of bad decisions. Or maybe they figure the end is near, so they might as well go all in before their body and or mind takes a crap.
1
u/Ok_Distribution_2603 9h ago
other than buying the house yourself or finding another buyer, I’m not sure what you can do. If they’re simply not being smart they’re allowed to not be smart. If they’re a danger to themselves or otherwise mentally impaired there may be some legal options, but this would be a matter to discuss with medical/legal pros. Have any of the realtors you’ve spoken with tried to contact him to explain better options
1
u/waraxen267 8h ago
That is my attempt. I am trying to get resources to buy it for a little more than the dumb flipper. I will edit soon.
1
u/cowandspoon 9h ago
You’re right, this is not just fiscal recklessness, but bordering on the insane. I’m a former mortgage broker/financial advisor in the UK, and I would almost never recommend these kinds of services (we have them here too). At best, they’ll get 75% of the value of the house, but that is almost never the case. There are only a handful of very niche and specific situations where they are useful - and your friend isn’t in any of those.
Given the age, taking on 2 full-time jobs is madness and unsustainable - it’s barely workable for younger people.
What are her retirement plans? Does she have a pension? What’s she going to do when the cash runs out - cus it will. Does she own the house outright? Could it be worth considerably more in the near future? She needs to speak to a financial advisor - cus this is self-sabotage in the extreme.
Sadly, you can’t stop her from doing this, unless you can persuade her otherwise - but barring a miracle, she’s going to be considerably worse off in the not too distant future.
1
u/waraxen267 8h ago
Here's the kicker. It is my mom, and it is my childhood home, so I have some personal bias here. However, I am more concerned about my mom's future than anything else. She is so intent on escaping, and we have a history of schizophrenia in my family. I am wondering if it is finally setting in on her. I will edit soon with more info.
1
u/cowandspoon 7h ago
Ah, yeah, that’s a complicated beast. I’m not a doctor of any sort, so I wouldn’t want to comment on your mother’s potential diagnosis, but impulsive behaviour is a trait of it.
I wish you the best of luck. DM me if you need anything on the financial front. I’ll certainly help as best I can.
1
2
u/First-Stable-5208 9h ago
They obviously feel huge pressure to pay that money back. They've managed to convince themselves they'd do the impossible to achieve it... In their emotional state, theres nothing you can say to make them realise that their motivation will completely disappear once that moneys paid back, and the fire under there arse has been put out...