Posted on: 30th Oct, 2009 10:14 am
93 year old mom would like house sold upon her death and assets divided upon the 3 sons. the house is in need of about $25k in repairs. should there be a quit claim deed now between mother and a son to start the repair process with an equity loan? how else will we come up with the funds for repair? we are in broward county florida
if you have a local bank or credit union that has some sense, they might allow your Mom to be a borrower with you as cosigner, or vice versa, for that matter. i wouldn't disagree that doing a quit claim at this time would be a decent thought, but i'd also think that with (my) three sons, there's a need for that quit claim to be inclusive of all your interests, for protection's sake. of course, you'd want to coordinate all your ownership activities with a lawyer, for the protection of all concerned.
of course, you can find a bank with no sense, too, and that may work as well. it's also possible that your efforts may be best served by seeking a personal loan, perhaps with all 4 of you involved.
of course, you can find a bank with no sense, too, and that may work as well. it's also possible that your efforts may be best served by seeking a personal loan, perhaps with all 4 of you involved.
>>How else will we come up with the funds for repair?
You didn't mention the value of the house, but with a Reverse Mortgage the repairs could be taken into the loan, and your Mother would have up to 9 months to complete them. The house would have to be worth approximately $200,000.00 in order to do that, because up to 15% of the value of the house can be taken into the loan for repairs.
At age 93, and a value of $200,000.00, your Mother would receive $146,047.00 in cash, or $2,105.00 per month. The Lender would withold 50% more then the cost of repairs, or $37,500.00, in case of construction overruns, and your Mother would receive whatever was left over after the repairs have been completed.
Your Mother qualifies for the Reverse Mortgage right now and there'd be no money out of her pocket to get one.
You didn't mention the value of the house, but with a Reverse Mortgage the repairs could be taken into the loan, and your Mother would have up to 9 months to complete them. The house would have to be worth approximately $200,000.00 in order to do that, because up to 15% of the value of the house can be taken into the loan for repairs.
At age 93, and a value of $200,000.00, your Mother would receive $146,047.00 in cash, or $2,105.00 per month. The Lender would withold 50% more then the cost of repairs, or $37,500.00, in case of construction overruns, and your Mother would receive whatever was left over after the repairs have been completed.
Your Mother qualifies for the Reverse Mortgage right now and there'd be no money out of her pocket to get one.
