Friday, February 20, 2009

Troubled in mind

Thinking about something which could have significant impacts on my family.

This thing would benefit my family greatly, but could possibly hurt a friendship.

You see, the house we are living in right now we are renting. We have a lease/purchase option, and we are scheduled to buy the house next summer. We have already agreed to a price with the landlord- who happens to be a friend of the family. Thus the problem. We have just found out that our city is offering an incentive for people to buy homes in foreclosure. The house across the street from us, with one more bedroom and is waterfront property, is in foreclosure. The city will give you 40% with the promise to stay in the house 5 years. With the city incentive, that effectively means that the house across the street from us would cost us half of what "our" house will cost us.

If we hadn't been friends with the landlord, there would be no trouble. We would just say we had found a better situation and be done with it.

But we ARE friends with the landlord. He really did us a favor by renting us the house, when he could have sold it for a much higher price last year.

What to do?? Continue renting and then buy the house next year, or break our lease with our friend, buy a house NOW and have a mortgage that will be half of what it would be otherwise??!!

Please pray for clarity of mind and wisdom in decision-making.

Thank you.

8 comments:

Haley said...

I think that since the landlord is your friend you should just be honest with him and explain that the house across the street is an opportunity you just cannot pass up (especially since it has an additional bedroom and you probably intend on having more kiddos later).

I'm sure he will respect your decision as your friend and as your landlord.

Hugs!

Susan said...

I think I agree with Haley. Even though he is your friend, he is obviously also a business man and should understand the opportunity with which you are presented. You have to make sound financial decisions for your family FIRST before you think about your friends or others in your "circle". I know that doesn't make it easier, but it's all about priority and perspective in this case.

Hang in there and have a great weekend.

Brent Ozar said...

That's funny - I totally knew what I was going to say before I read the comments, and Haley and Susan already said it. He might give you a discount on the house, or give you other options. Be honest with him, tell him you're looking for guidance, but just don't come off like you're entitled to anything. He could have just as easily turned it around on you if the market had soared.

Damselfly said...

That's a toughie. I tend to agree with the previous commenters, though -- because he is a friend, if you present the situation carefully, he will probably understand. It's a hard real estate market -- the worst in the country, I've heard in the news -- and a half-price house is nothing to sneeze at. If you have a contract of any kind with him, you might want to take it to a real estate attorney to review for his or her opinion, and also get something in writing about that discount. Will be praying for you....

Heather said...

That is a tough situation. I think you have to do what is best for your family. Hope that your friend really is a friend and understands.

Awesome Mom said...

That is a toughie. I hope you are able to find a good solution.

chelle said...

I agree with Haley and the other commenters, friends should be able to be honest with another and want the nest for each other. Sending positive vibes!

Maestro Dennis said...

Do what you want to do. Maybe you could try to refer a friend to your landlord, since he's been such a good landlord.

But ultimately, your job is to do what's best for you and your family.