Real Estate Journal Online

What do you do if you have lousy credit, a home that is underwater and a mortgage payment that is too big to handle alone? While some homeowners are opting to walk away from this massive problem and give up their homes, others are inviting in some permanent residents to help shoulder the load. The trend, called homesharing, involves a legal agreement between two or more parties to share the burden of the costs of owning and running a home and part or all of the property amenities[1]. While some people simply split up existing living spaces and document what portion of expenses shall be paid by each party in exchange for interest in the deed to the property, others actually are expanding on their homes in order to improve the value of the property and then adding residents.

This trend is becoming increasingly popular with baby boomers hoping to age in a supportive environment among friends, reports one lawyer. While many baby boomers had planned to sell when they reached retirement age and downsize into a smaller, more manageable home or assisted living, market conditions are preventing this scenario in many cases. Instead, couples may opt to expand and improve existing properties with other couples, then work out a legal agreement that works for all members dealing with residency in the property and transfer of title in the event of one owner’s death. With many boomers reaching the age where health and money concerns may trump the desire to sell a home at a profit or where they simply must work out new living arrangements, homesharing seems like a trend that could become more prevalent in the coming years.

Do you think that this type of arrangement is asking for trouble, or a great solution to a unique market problem?

Thank you for reading REJournalOnline!

Let us know about your creative financing ideas below.

---

[1] http://www.mnn.com/your-home/at-home/stories/how-to-stop-foreclosure-through-homesharing