Kazak needs help!

NEW -> Contingent Buyer Assistance Program
M

Mendelssohn_IHB

New member
<p>The following is roughly translated from Russian, </p>

<p>Hi, everyone, I am a new immigrant renting in LA. Please call me Kazak for I am from Kazakhstan. I regularly visit my mother at an OC retirement home. My older brother lives with his own family in Irvine; he arrived in the US more than 10 years ago and has established his own business. My wife and I currently have temporary jobs just to pay daily expenses.


</p>

<p>Now, my brother is in financial trouble, he wants to borrow ½ millions from me to bring down his mortgage payment. Our mother said I should help, but I said no after hearing that Irvine housing market is going down. The ½ million I have is my share of inheritance from my late father. Since we just arrived and we are not sure where to live permanently, we are keeping the money for a future house.</p>

<p>Last weekend, my brother proposed that if I give him ½ million, I will get ½ ownership of his Irvine house that he paid 1.3 million for. </p>

<p>Both my mother and my brother think the offer is more than generous. I would also be paying half of property tax, HOA and maintenance. But, we don’t get to live in there. </p>

<p>I like to know,</p>

<p style="margin-left: 0.5in; text-indent: -0.25in;"></p>

<p style="margin-left: 0.5in; text-indent: -0.25in;"></p>

<p>The house<strong> </strong>was bought with ½ million down and $800,000 loan in 2005. My English is not good, but I will read everyone’s comment tonight myself. Thank you very much.</p>
 
Well, me first; since I post the thread for him!





My first idea is to SELL THE HOUSE !


But, since Kazak's brother does not take that very well. The next best suggestion I have is this,

<p style="margin-left: 0.5in; text-indent: -0.25in;">½ mil for ½ ownership.</p>

<p style="margin-left: 0.5in; text-indent: -0.25in;">Kazak does NOT need to pay for ½ of property tax, HOA and maintenance unless 1, he and his wife move in or 2, the house’s fair market value goes up above 1.3 million.</p>

<p style="margin-left: 0.5in; text-indent: -0.25in;">Either Kazak or Kazak’s brother can sell the house whenever they need to. But, Kazak will have his ½ million back regardless of the selling price. AND, PUT EVERYTHING IN WRITING.</p>

<p style="margin-left: 0.5in; text-indent: -0.25in;">The above is my 2 cents. I am sure people here will have much better ideas.


</p>
 
<p>It's a much more enjoyable read if you imagine that it's coming from this guy:</p>

<p><img height="161" width="200" alt="" src="http://blog.mix971.net/mixmovies/Borat-flag.jpg" /></p>
 
<p>It seems like a seriously bad idea for Kazak to put his money in his brother's house. Where will Kazak get money to eventually buy his own house? Will he make his brother move so he can get his money out of the house? How will brother and mother feel about that?</p>

<p>If he cannot afford his house, then he needs to sell it. If he too close to foreclosure or something, it would be better for Kazak to loan him some money to make the payments until he can sell it. Then Kazak could get paid back right away. Brother should sell the house as soon as possible though, not in a year or two.</p>
 
thats a terrible idea...





inheritance money. desperation and pressure from family members. sinking housing mkt. this is bad cliche from a peoples court case except the dollar amounts have a few more 000's. we all know how its going to end already -- resentment and bad blood. not to mention the legal nightmare of such a transaction.
 
<p>How much do you love your brother? And how much does your brother loves you? If you both are extremely close. I say, "Yes."</p>

<p>But since you have to ask everyone's ideas. That tells me you have doubts. Then the answer is "No."</p>
 
<p>NO ! NO ! NONONONONONONONONO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!</p>

<p>Now watch him go ahead and give his bro the half mill anyway. Easy come easy go. </p>
 
Is this for real? 1/2 mil for 1/2 ownership? Kazak, don't be stupid. What you will end up getting is 1/2 of a mortgage and you will never see your money again. If you love your brother and want to help him out, give him as much as you feel comfortable giving him with no expectation of return; a gift. If your brother is in financial trouble, there is a reason and chances are those reasons will not dissappear once he has your money, and quite possibly those reasons will just be exacerbated by the 1/2 million.<p>


Kazak, buy gold.
 
<p>This is such a difficult question in that it is largely not an economic question. What I mean is that the answer would be pretty clear if the proposal was made by anyone else other than a close family member.</p>

<p>Here are some of questions that I would ask myself in order to arrive at a decision</p>

<p>1) Is your brother a fiscally responsible person</p>

<p>2) Was he responsible in buying the property in the first place i.e. buying it for the right reasons?&nbsp</p>

<p>3) Is the need a result of extuanting circumstances like medical expenses or unforeseen events</p>

<p>If your brother was fiscally responsible but simply had some bad luck my inclination would be to give him the money</p>

<p>However, if he was fiscally irresponsible, giving him more money would be like giving alcohol to an alcoholic. You are not doing him a service by giving him money. He will not learn from his mistakes and cause more issues down the line.</p>

<p>Additionally, why does he need $500K? If already has 50% down, he should be able to get a 30 year fixed with little or no problems. It is not likely that he will get better rates now. If he is trying to get to a conforming loan, he would only need about $400K. If he needs to refinance home equity loans, all he needs is about 10-20% (which is about $250K) and then he can refinance the whole house again and pay off the equity loans. </p>

<p>Finally, whatever amount you decide to provide toyour brother, I think that you should have the attitude that you are giving this money to him If you see as a "loan", it will eventually tear your relationship with your brother (and perhaps the rest of the family) apart. Just think of it as giving it to a charity.</p>
 
<p>Kazak:</p>

<p>Your brother has bigger problems than you can fix with your $500K. </p>

<p>If he has been in US 10 years, and only thing he could think of to use his $500K inheritance is to buy a house he can't afford, then that is his and only his problem!</p>

<p>You should help him review American bankrupcy laws. Because that is where he is headed.</p>

<p>Don't even associate his address with your name or vice versa. With same last names, US credit bureaus may think you and your brother are the same person and you end up with his bad credit! It can be fixed, but you will have to write a lot of English letters. So just avoid the situation completely. </p>

<p>In the US, your good credit is everything! </p>

<p>1) You need to start establishing credit ASAP. credit cards, car loans and pay them back on time.</p>

<p>2) You also need to find a job that pays for health insurance. Being sick in the US will wipe you out financially. $500K will only cover 2 week stay in hospital.</p>

<p>3)And don't put all that money in one bank. Keep each bank account under $100K in your name only for FDIC insurance. Your wife is not entitled to your inheritance if you should unexpectedly divorce, as long as it is kept under your name only.</p>

<p>4)Start joining credit unions. They have many member services that will help you navigate US financial system. </p>

<p>Good luck! let's hope you turn out like Tamir Sapir!</p>

<p> </p>

<p> </p>
 
<p>Kazak feels pressured to help because,</p>

<p style="margin-left: 0.5in; text-indent: -0.25in;">If he refuses to go with the plan, his mother will sure use her own saving to help her elder son. Kazak worries that if the worst happens, he'd have to take care of his mother.</p>

<p style="margin-left: 0.5in; text-indent: -0.25in;">Kazak and his wife got their green card because of his brother.


</p>

Also, as far as I know, it was a lawyer who suggested Kazak's brother giving Kazak 1/2 ownership of the house because the brother refused to sell. The 1/2 million from Kazak is supposed to pay the bank in order to bring down monthly payments. Brother's business is in trouble, can't afford the payments now.
 
Doesn't change anything I said. How much can Kazak afford to give as a gift, because that is what it will be, and better it be given in love than later resented for.
 
<p>Kazak,</p>

<p>1) There is nothing you can do about your mother. It is up to her to make her own decisions. I think you can talk to her abot why you made the decision you did and encourage her to go along with it. If your brother is bad with money, giving him more will not do anything.</p>

<p>2) Why I understand that you may obligated about helping your brother because of your green card, you need to look out for the welfare of yourself and your wife first. It does not sound like you are financial solid grounds and that the savings is your only insurance for the perils of life. It is like what they tell when you get on a plan, put your oxygen mask on first before helping others.</p>

<p>If your brother has serious financial problems, he should exhaust his options first before coming to you or your mom. He needs to sell his first and then come to you. If he does not choose to do this, he is simply being greedy. </p>
 
<p>Kazak,</p>

<p>In this declining market. What happen if the value of your brother's home goes down from 1.3 millions to $600k. Will you be okay with half? Which is now $300k.</p>
 
<p>Lets see....</p>

<p>Kazak is a new immigrant with a green card. He is the younger brother. He only has a temp. job. and is renting.</p>

<p>Kazak's brother has a 1.3 million dollars home and a business. Kazak brother is older and been in the country for 10 years.</p>

<p>Don't you think he should be helping you out? He's the older brother for Goodness sake. He should have some pride. To ask his younger brother for help is just darn embarassing.</p>
 
<p>One last thing. Why are you working? You say you have $500k? Why aren't you investing that money in a mutual fund(s)? With a rate of return of 15 to 20% annually. That equates to approximately $6300 to $8300 in monthly income.</p>
 
You must log in or register to reply here.
Back
Top