Posted on: 18th Jan, 2008 11:50 am
There is a reverse mortgage on my parents home. There was no will and there are four siblings. Three said that they are willing to sign a quit claim. 99,000 is owed on property that is valued at 200,000-needs a lot of work. Is it necessary to go to probate since parents have no other assets? Second questtion is is it wise to use money from my IRA to try and pay off this loan. I took early retirement to take of parents. I would be penalized. Since time is running out, we only have untill April 2008 to pay off this loan, I concidered just getting it from my IRA. I have 3 yrs before I am 59 1/2.
hello jacksonjanice,
welcome to the forum.
if there is no will, then you have to file an affidavit of heirship to get the property in your name. if three of the siblings do not claim any interest in the property then it is easier for you to get the ownership rights to the property.
after you get the title in your name, you may refinance the loan in your name. i think that will be better than withdrawing funds from your ira and incurring a penalty.
you may consult an attorney and take his advice if that is required.
welcome to the forum.
if there is no will, then you have to file an affidavit of heirship to get the property in your name. if three of the siblings do not claim any interest in the property then it is easier for you to get the ownership rights to the property.
after you get the title in your name, you may refinance the loan in your name. i think that will be better than withdrawing funds from your ira and incurring a penalty.
you may consult an attorney and take his advice if that is required.
Hi Jackson,
Probate is actually a legal process by which the validity of the Will is being sorted out and any claim to the property is determined in order to settle the estate of a deceased person. But in this situation, the question of a probate does not arise here because there's no Will.
"Three said that they are willing to sign a quit claim
"
You mean they are transferring or quitclaiming property to you only?
"is it wise to use money from my IRA to try and pay off this loan
"
Not wise because you pay a 10% penalty on the amount withdrawn as well as pay taxes on the money. Think of some other option - by selling your stocks or renting out a second home, if any, etc. Refinancing the existing loan can be an option too. However, taking out IRA money should be the last option to think of.
Good luck
Probate is actually a legal process by which the validity of the Will is being sorted out and any claim to the property is determined in order to settle the estate of a deceased person. But in this situation, the question of a probate does not arise here because there's no Will.
"Three said that they are willing to sign a quit claim
"
You mean they are transferring or quitclaiming property to you only?
"is it wise to use money from my IRA to try and pay off this loan
"
Not wise because you pay a 10% penalty on the amount withdrawn as well as pay taxes on the money. Think of some other option - by selling your stocks or renting out a second home, if any, etc. Refinancing the existing loan can be an option too. However, taking out IRA money should be the last option to think of.
Good luck
Yes it will have to be approved through the probate court but if all parties agree then it should make the process easier. They can approve this transaction while still sorting out everthing else so you may not have to wait until after probate. Contact the attorney handling this to let them know you what to do this and they should be able to submit the request to probate for approval.