I think I'm about to get royally screwed

[Dave]

I rent my home, the house belongs to my sister. I've been here a long time. She always told me that I would have a home as long as I needed it. I've been trying to save up to buy the house, but single income in a high cost state doesn't go far towards living AND saving for a downpayment. Things have come up over the past couple years that have eaten away at my savings. I'm not there yet.

I just heard from my sister that she's losing her insurance, and she checked with two other insurance companies that won't insure her because of my dogs. She actually said I may have to get rid of them. I nicely replied that won't happen. I'll move out first.

Don't know where I'll go. I gave her a list of insurance companies that don't discriminate, we'll see what happens. Even so, her taxes went up, her insurance might go up, so the rent goes up, and that'll hit my saving capacity, too.

I think I'm f*cked.

[michele5611]

Dave so sorry to hear that you are dealing with this. I can tell you that I just switched insurance companies and am now insured by AIG. They do not discriminate they only asked if my dog had a bite history. I think Mary Ellen said State Farm accepts pits.

Let me know if I can help in any way. The cost of living here blows. We get hit from every angle from car insurance to property taxes and forget about the housing costs!!

Maybe a condo would be more doable if you can get homeowners for the dogs....just a thought.

[maryellen]

Liberty mutual, nj manufacturers, Allstate, State Farm and farmers mutual accept pitbulls as long as they never bit. Each office for State Farm and Allstate are individually owned so one might say no while others say yes.
If you get renters insurance that covers your dogs her homeowners can exclude them and everyone wins. Would she consider selling you the house and holding the mortgage so you can then own it and get your own insurance?

[suziriot]

Oh no Dave! Really hope something works out. Maryellen's suggestion about renter's insurance sounds like a possibility. Keep us posted.

[Dave]

I suggested that I get coverage so she doesn't have to. I hope that's a real possibility. ME, she still has a mortgage on the home, so that won't work. I would have to get a mortgage so she can pay hers. It's just that I don't have the cash for a downpayment.

It's just an eff'd up situation on top of all the other sucks in my life. Don't need this now.

There's no way in hell I'm giving up my dogs. No one would want them, anyway. Who the hell would want a wobbler, a health disaster and a dog who won't go outside?

Geeze.

[maryellen]

You can try FHA its 3% down and they give mortgages if your credit isnt good or you cant do 10% down.
Would she sell you the house for the balance of the mortgage?

[Dave]

My credit is great. 750+ score. I ' m counting on FHA and 3% down. We need to make a deal on price. Still, down payment is the biggest issue.

[RealPitBull]

Wow Dave, really sorry you are going through this. Having just lost my place and being unable to have any dogs at all, let alone Pit Bulls, I can certainly relate and know your fear. I really hope something works out, I think it will. I would hope your sister will work with you and understand that getting rid of your dogs isn't even something that would be considered possible.

I'm moving this to the Issues board because of the insurance stuff, might be helpful to others.

[Dave]

Thanks, Mary. I still can't believe she said that. She has a dog.

[maryellen]

Dave first time home buyers get more discounts. If you never bought a house before you can get more discounts ...see what your credit will allow for a mortgage , this way you know what you can afford. See if FHA can wrap the deposit and /or closing costs into the mortgage( i did that on my first house as i was a first time home buyer)
You can go on lending tree.com and see what you can get for a mortgage etc...

[michele5611]

Any progress Dave?

[maryellen]

Www.njm.com i have for my homeowners and i had for my renters insurance and they were fine with rufus sadie. And sonny when i had my rott..

[Dave]

ME, thanks for your suggestions. I will definitely look into those.

I got word yesterday that my sister obtained Sate Farm insurance. The other four or five she checked would not insure an income property if the renter had dogs, even if they were covered under the renters insurance. Crisis is averted, for now.

[maryellen]

Dave that is great!!

[maryellen]

That is great news Dave!! Hopefully this is the end of it..
What if she said you didnt pay rent then that wouldn't be an income property? Just curious as to if the outcome would be different. I never heard of any companies denying coverage with a renters policy - usually thats what they want is a tenants policy with liability covering the dogs so the landlords policy can exclude them.. But at least you are safe for now, now you can try to buy it so you dont have to deal with this anymore

[Dave]

I'm thinking of taking the down payment out of my IRA. It's penalty free, but I'll still need to pay taxes. I just don't want to steal from my future to pay for my present. We'll see.

[maryellen]

Before you do that see if you qualify for no down payment being a first time home buyer... If you qualify then you just need the taxes, inspection feed etc for the closing.... Closing costs are the deposit -if needed, insurance payment, and property taxes etc...