Hello, George!! I have a question for you. In 2001, My mom, sister and I
Hello, George!! I have a question for you. In 2001, My mom, sister and I
Hello, George!! I have a question for you. In 2001, My mom, sister and I went to attorney and put Mom's house in my name and sister's name, with Mom having life estate in the home. My Mom has continued living in the home. My sister and I have talked and I want to buy out my sister's share of the home. I am now living in the home with my Mom. I have gone to bank to get loan to pay off my sister for her share and also some more for renovations. The bank is saying that my Mom will have to be a co-borrower as she is still living in the house. I wanted to have a title that shows me as the sole owner but allowing her life estate. If that is not possible, then I would get title as the sole owner. What do we need to do in order to get this transaction taken care of? I only have a day to get figured out or the loan will be denied.
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When there's a Life Estate, that person holding the Life Estate must be a party to any loan transaction. The lender is correct in saying that.
Honestly, I'd shy away from trying to change anything on title; generally, a Life Estate is established for a very good reason, and if you eliminate what's already taken place, that'll be something that could cause you a liability (in the form of a possible lawsuit).
I'd think the lender would have enough sense to maintain the file until such time as you're able to work out all the details. Unfortunately, we consumers are generally not well-schooled in what is required, and the lenders (at least those we encounter at first) are similary ignorant of requirements. Why they wouldn't simply put your file on hold for a few days is something that's not understandable to me, but that's just me, I suppose.
Do you have legal representation? You should.