Posted on: 28th Nov, 2009 06:14 pm
My aunt had given life rights to her roommate/best friend on the home they lived in. They wanted to move and at the height of the market, my husband & I bought them a house, with the understanding that when her house sold, I would be re-paid. My aunt died the day before closing (she had been ill) but we decided to go ahead and let her best friend live in that house anyway. Her house eventually sold...after many months on the market...and not for as much as what we paid for the new one. So we have a mortgage we've been paying every month & the best friend pays us taxes and insurance monthly.
The best friend received her calculated value of the life estate when the old house sold (about $68,000) and gave that money to us. Now we are in some financial trouble and fear that if we end up having to file bankruptcy, she will have the house ripped from under her! What can we do? Are we too late to record some type of life rights on the deed to her without a court looking at us as though we are trying to avoid paying our debts? We will pay her mortgage no matter what! That is how strongly we feel about her not being "kicked out" of her home! I should mention that she is 65, on social security and likely cannot qualify to buy the home from us.
Thanks for any help.
The best friend received her calculated value of the life estate when the old house sold (about $68,000) and gave that money to us. Now we are in some financial trouble and fear that if we end up having to file bankruptcy, she will have the house ripped from under her! What can we do? Are we too late to record some type of life rights on the deed to her without a court looking at us as though we are trying to avoid paying our debts? We will pay her mortgage no matter what! That is how strongly we feel about her not being "kicked out" of her home! I should mention that she is 65, on social security and likely cannot qualify to buy the home from us.
Thanks for any help.
Hi angiehh,
The mortgage on the house is you and your husband's names. Your aunt's friend no longer has a life estate right to the property. You and your husband want to file bankruptcy, but you do not want her to lose the home due to your bankruptcy. Am I right?
You have said that you will pay her mortgage at any cost, right? If this is the case, then I do not think she has any fear of losing the house. As long as you are current on the mortgage payments, the lender will never foreclose on the property. If the mortgage is in your name and you file bankruptcy, you always have the option to reaffirm the mortgage and keep the house under chapter 7 bankruptcy.
The mortgage on the house is you and your husband's names. Your aunt's friend no longer has a life estate right to the property. You and your husband want to file bankruptcy, but you do not want her to lose the home due to your bankruptcy. Am I right?
You have said that you will pay her mortgage at any cost, right? If this is the case, then I do not think she has any fear of losing the house. As long as you are current on the mortgage payments, the lender will never foreclose on the property. If the mortgage is in your name and you file bankruptcy, you always have the option to reaffirm the mortgage and keep the house under chapter 7 bankruptcy.