Posted on: 20th Aug, 2009 12:51 pm
My in-laws are in a big financial trouble. They are currently living a house (market value of approximately $350,000) but there is a HELOC of $100,000 against the house. They both are over 65 years old and cannot clear their debt by themselves. I was told that they cannot even sell the house since there is lien on it.
Can they add my husband/or both of us to the ownership of the house so that maybe we apply for mortgage to clear the debt for them, and then we will inherit the house after they both pass?
Or are there better solutions? Your advice would be greatly appreciated.
Can they add my husband/or both of us to the ownership of the house so that maybe we apply for mortgage to clear the debt for them, and then we will inherit the house after they both pass?
Or are there better solutions? Your advice would be greatly appreciated.
Hi Lily,
Your in-laws can definitely add your husband and you to the property but they will have to inform the lender about it. As there is already a loan on the property, I don't think you would be able to take another loan on it to pay it off.
Your in-laws can contact the lender and apply for a loan modification. This will help them to save the property and also give them an affordable payment plan to pay off the dues.
Your in-laws can definitely add your husband and you to the property but they will have to inform the lender about it. As there is already a loan on the property, I don't think you would be able to take another loan on it to pay it off.
Your in-laws can contact the lender and apply for a loan modification. This will help them to save the property and also give them an affordable payment plan to pay off the dues.
Hi Adonis,
Thank you very much for your response.
I'm sorry if I'm asking a dumb question, but if I understand correctly once my in-laws add my husband and my name to the house, we would be equally reliable for the $100,000 debt on the house. That why you think we cannot apply for another loan?
Thanks.
Thank you very much for your response.
I'm sorry if I'm asking a dumb question, but if I understand correctly once my in-laws add my husband and my name to the house, we would be equally reliable for the $100,000 debt on the house. That why you think we cannot apply for another loan?
Thanks.