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So, my dad neglected to pay his Chicago property taxes for 3 years, and apparently they got sold to a third-party, and unless he pays them $25K by July 15 he stands a chance of losing his condo. Leaving aside for the moment the fact that I'm agreeing to help someone who by all rights deserves to lose his home for being a moron, I'm still his son, and I'm in a position to help him. I've already engaged a lawyer to talk to this third-party, but I'm kind of struggling on the finance side. I make very good money, but with only a few months of lead time coming up with $25K isn't going to be possible. I'm thinking I can have $10K saved in 2 months, but that still leaves me $15K short, and without any emergency savings if I use it all up. I'm thinking a private loan would be the best route to go, but I don't know much about this area of finance. I figure since I've got good credit and a demonstrably high income that there has to be a lender out there who would want to give me money, even if it meant I had to carry a high interest rate on it. I checked with my bank (Chase) and they said they don't do personal loans, only credit card limit expansions. I'd do that if I had to, but there's no guarantee that I'd get the full amount. Plus, I'm generally of the opinion that Chase can eat a dick. They did ask about using some of my assets as leverage, but I'm determined to keep my house away from this mess. If something goes sideways, I don't want to be left homeless, too. Any thoughts? I turn to the GoonMind for gentle guidance.
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May 10, 2014 19:38
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| # ? Apr 19, 2024 22:19 |
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Mandals posted:I'm in a position to help him. Except Mandals posted:I'm thinking I can have $10K saved in 2 months, but that still leaves me $15K short, and without any emergency savings if I use it all up. No, you're not. Mandals posted:They did ask about using some of my assets as leverage, but I'm determined to keep my house away from this mess. If something goes sideways, I don't want to be left homeless, too. This is the only smart idea in your post. Mandals posted:Any thoughts? Don't. lament.cfg fucked around with this message at 19:55 on May 10, 2014 |
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May 10, 2014 19:51
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If you need to borrow I would go talk to a local credit union. They're typically much easier to deal with than a bank, particularly a bank the size of Chase. While you're at it, I would also recommend switching all your accounts to a local credit union unless there's a compelling reason to stick with Chase, which there certainly can be.
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May 10, 2014 19:57
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TouchyMcFeely posted:If you need to borrow I would go talk to a local credit union. They're typically much easier to deal with than a bank, particularly a bank the size of Chase.
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May 10, 2014 20:34
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I don't think it is common to get an unsecured line of credit for $25K in your situation. Most people would get an HELOC (i.e. against their house) but sounds like you don't want to. Comedy option: a bunch of 0% credit card promos.
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May 10, 2014 21:18
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SiGmA_X posted:This. OP, you say negative things about Chase yet you bank with them? Wtf, why!! Chase is such a pita. I used them for my LLC account for a quarter and then got the gently caress out and set it up with my CU. gently caress Chase. In short, entropy. I've had accounts with them for many years, and I've not had a really compelling reason to switch just yet, although I'm going to check into the credit union idea. As for the HELOC, I couldn't do one even if I wanted to because I've only been in my place since last July, and my understanding is that I'd typically need to have more equity.
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May 10, 2014 22:52
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I have no idea if this would work or not but is there enough equity in the condo that your father could refinance and get the money to cover the back taxes with a new mortgage?
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May 10, 2014 22:55
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I checked out lendingtree.com, and I got a few offers, one of them from lendingclub.com for $20K for a 3 year term. It sounds...possibly okay. The APR is 14.3, but I'd be paying roughly 3K in a month to it, which means I can have it paid off in 6 months. Anyone have any experience with either lendingtree or the lender (lendingclub.com?). I think this could be a workable option, but this is all new to me so I don't know what the pitfalls are.
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May 10, 2014 23:57
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Does your dad have any equity in the property? Even if you do bail him out, is he going to be able to cover the taxes going forward?
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May 11, 2014 02:46
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Mandals posted:I checked out lendingtree.com, and I got a few offers, one of them from lendingclub.com for $20K for a 3 year term. It sounds...possibly okay. The APR is 14.3, but I'd be paying roughly 3K in a month to it, which means I can have it paid off in 6 months. The peer-lending thread will answer your questions.
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May 11, 2014 02:48
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skipdogg posted:Does your dad have any equity in the property? Even if you do bail him out, is he going to be able to cover the taxes going forward? I...think so. I know his condo is paid off, but that he also took out a HELOC a few years ago to redo his kitchen and bathroom. At one point had a lien on his house with the IRS(!), but that's been resolved. In other words, he has a messy financial picture and is in many ways a complete gently caress up for a 70 year old, but to your overall question, he claims he can pay them this year. He's drawing on SS and seeing patients again, so he's got money coming in for once. Besides, I told him this was a one time deal, and he knows my answer if he tries it again. In any event, one of my preconditions for helping him is that A) he show me EVERYTHING and B) he has to hire and use a financial advisor, and he knows I'll be checking up on this. This may sound kind of mercenary, but I'm not so much doing this to help him as I am doing this to buy some peace, and prevent an even bigger shitstorm when he inevitably gets kicked out of his place. I have no illusions. In fact, I fully expect him to have a new drama in a few years--he's always been one of those people who looks for ways to game the system or dodge taxes. I told him that that poo poo may have worked in the 70s, but it's all computerized now and he's playing with fire.
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May 11, 2014 03:05
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Dik Hz posted:The peer-lending thread will answer your questions. *applies smack directly to forehead* Awesome, thanks. I must have missed that thread. Good looking out.
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May 11, 2014 03:05
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Mandals posted:I...think so. I know his condo is paid off, but that he also took out a HELOC a few years ago to redo his kitchen and bathroom. At one point had a lien on his house with the IRS(!), but that's been resolved. In other words, he has a messy financial picture and is in many ways a complete gently caress up for a 70 year old, but to your overall question, he claims he can pay them this year. He's drawing on SS and seeing patients again, so he's got money coming in for once. Besides, I told him this was a one time deal, and he knows my answer if he tries it again. He's going to blame you for it if you help him out anyway. When it comes down to the next time he falls behind and you don't help him out, he'll blame you, and even worse the next time as "you helped him once". Do not get wrapped up in this mess. Never, ever, ever mix family and money.
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May 11, 2014 07:14
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I think you guys are being heartless, and maybe punitively short sighted. It's his 70 year old dad and he is in a place to help. I think some details are still unknown the place might be worth over $25k in and of itself (which I assume he will inherit). Plus a homeless dad isn't good for anyone, is he going in a home instead, you don't think a good son is going to end up with a tab for that as well? I don't think it is a surefire help, but if you do decide to why not take a loan against your existing assets. If you are going to spend the money do so at the lower rate. You sound like you make decent money, assuming that is stable you should go that route. If you income is not stable you should think about not helping or letting another family member take this on.
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May 11, 2014 07:40
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Foma posted:he is in a place to help "Spend every penny of savings and get a $15k loan at 14%" is not "in a place to help".
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May 11, 2014 13:50
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I get a letter about being approved by discover loans up to $30,000 like once a week. Have your dad/you look into that.
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May 11, 2014 14:04
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If he has equity then a reverse mortgage is probably his best option. I don't think he could get approved for an increase on his HELOC without proof of income, which it sounds like he has very little of. They can make paying the taxes a condition to close. If he has no equity, then he's basically a renter anyways, plus he's 30k underwater for taxes. You wouldn't be doing him any favors bailing him out. You taking out a 3yr $15k unsecured loan at 14% is retarded. Even if you had equity in your own place it hasn't "seasoned" for a year, so it's unlikely you could get a HELOC yourself.
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May 11, 2014 16:34
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ifuckedjesus posted:If he has equity then a reverse mortgage is probably his best option. I don't think he could get approved for an increase on his HELOC without proof of income, which it sounds like he has very little of. They can make paying the taxes a condition to close. Ifuckedjesus has hit upon the main question, how much equity does your dad have in the Condo right now. This answer is needed before any real advice can be given.
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May 11, 2014 20:08
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Foma posted:Ifuckedjesus has hit upon the main question, how much equity does your dad have in the Condo right now. This answer is needed before any real advice can be given. He owns it outright. I think he still owes money on the HELOC for the kitchen though.
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May 11, 2014 20:31
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Mandals posted:He owns it outright. I think he still owes money on the HELOC for the kitchen though. Then he doesn't own it outright. A HELOC will still have a lein against the property. I would suggest talking to the bank that owns the HELOC. For primary mortgages I know Chase will often pay back taxes and create an escrow account for you in order to avoid having the state taking the property. You could get up to 5 years interest free for $25k, but your dad would also have to pay this years taxes monthly to them. Not sure if they can do that for home equity. If that won't work I suggest trying to get more money out of the home equity loan, or getting a reverse mortgage. I don't know why you are immediately jumping to the idea of you taking out a personal loan and paying a crazy interest rate to help your dad. If a family member wanted to buy a house would go and talk to banks about getting a personal loan for them?
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May 11, 2014 20:59
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Mandals posted:I...think so. I know his condo is paid off, but that he also took out a HELOC a few years ago to redo his kitchen and bathroom. At one point had a lien on his house with the IRS(!), but that's been resolved. In other words, he has a messy financial picture and is in many ways a complete gently caress up for a 70 year old, but to your overall question, he claims he can pay them this year. He's drawing on SS and seeing patients again, so he's got money coming in for once. Besides, I told him this was a one time deal, and he knows my answer if he tries it again. If you bail him out he will never learn his lesson. I wouldn't do it, Family or not. He knew he was trying to game the system and dodge taxes and now it came back to bite him. The last thing I would want to do is get involved in that. Poor planning on someone elses part does not constitute an emergency on yours.
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May 11, 2014 21:32
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Mandals posted:He owns it outright. I think he still owes money on the HELOC for the kitchen though. If he seriously has the equity, your best option if you really want to bail him out is to have him increase his HELOC to pay the debt. My bank is doing HELOC's for something like 3% right now. If necessary, you could co-sign on the HELOC. Or a reverse mortgage. These would be better options than taking out an unsecured loan at 14% interest.
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May 11, 2014 23:14
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ifuckedjesus posted:If he seriously has the equity, your best option if you really want to bail him out is to have him increase his HELOC to pay the debt. My bank is doing HELOC's for something like 3% right now. I think it's that he can't modify his HELOC or get another loan until he pays the property taxes. Kind of a Catch-22 is my understanding.
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May 12, 2014 00:05
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Mandals posted:I think it's that he can't modify his HELOC or get another loan until he pays the property taxes. Kind of a Catch-22 is my understanding. The bank will make it a condition of closing that it be paid and they will pay it on your behalf.
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May 12, 2014 01:15
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I do equity loans for a living and my institution considers tax liens, mechanic's liens, and judgement liens to be disqualifying. We require they be paid ptior to closing.
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May 14, 2014 05:39
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Use the 25k you are gifting him to put him in a cheap retirement home. It will only get worse from here.
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May 14, 2014 18:50
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| # ? Apr 19, 2024 22:19 |
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How do property taxes work in Illinois? I'm just surprised that after three years the property tax office would "sell" their taxes. Giving the taxes to a law firm to collect would make more sense. Does your father have the proper senior property tax exemptions? I just looked at the Cook County website (not sure if that's where it's located but Property Taxes are usually state wide with counties having certain options) and there is this: The Senior Citizen Real Estate Tax Deferral program is a tax-relief program that works like a loan. It allows qualified seniors to defer a maximum of $5,000 per tax year (this includes 1st and 2nd installments) on their primary home. The loan from the State of Illinois is paid when the property is sold, or upon the death of the participant. I don't think fixing his exemptions and getting the Tax Deferral will help with your current problem sadly. Edit: Removed some things that don't apply to Illinois after reading the property tax code. ExCruceLeo fucked around with this message at 21:12 on May 14, 2014 |
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May 14, 2014 20:50
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