Posted on: 16th Jan, 2009 08:21 pm
A friend quitclaimed deed with us a joint tenancy with right of survivorship...she the grantor to we, the grantees. I have since learned that she has lots of medical debt and there's reason to expect creditors may put liens against the house. The mortgage has been paid off (she paid it...$225k) however (and it was quitclaimed to me for $1...). Do bills (liens) die if, say she passes..or if she were to pass and I were to sell the property wuld the liens have to be paid? Let's say worst case scenario that the home sells for 225k and the medical bills/creditor liens are also $225k. If I sold it then I would net ZERO so what tax would I pay or would I. How could I pay tax if there is nothing left over after paying off liens (assuming creditors would still need to be paid). I thought bills die with a person. Maybe not inthe case of liens? I am thinking that I could be under water!! Donna L.
Hi donna,
Lien is placed against a property. If your friend transferred the property to you along with the liens, then you will have to pay off the liens even though she dies. As far as taxes are concerned, I don't think you will have to pay taxes if the money from the sale goes to pay off the liens. However, a tax assessor will be able to help you in a better way in this regard.
Thanks
Lien is placed against a property. If your friend transferred the property to you along with the liens, then you will have to pay off the liens even though she dies. As far as taxes are concerned, I don't think you will have to pay taxes if the money from the sale goes to pay off the liens. However, a tax assessor will be able to help you in a better way in this regard.
Thanks
Thank you James. I'll have to find out about the tax end of this....it wouldn't seem fair to net zero and still pay a tax bill. Yet I wouldn't be surprised. To continue ..... with joint tenancy/rght of survivorship...should she die, would I have to sell the house (and move) to pay off the liens incurred by her medical bills). I am thinking of renting it in that case. By the way, liens would not affect my credit (?) as they are against the house even though it would be jointly owned?? Thanks again.
Hey donna,
I don't think liens placed on the property will affect your credit report. However, you will have to pay off the liens placed on the property and only then the property will be free and clear. Yes, you can sell off the property and pay the liens.
I don't think liens placed on the property will affect your credit report. However, you will have to pay off the liens placed on the property and only then the property will be free and clear. Yes, you can sell off the property and pay the liens.
the land was will to me, but their is a tax lien on it, by paying off the lien, and the town put's my name on the deed, why should I have to go through the probate court?
Hi Ann,
The will needs to be probated before you can have the title in your name. However, if the value of the property, minus any mortgage or tax due, is less than $50,000 you can file an affidavit and you may not have to go through a lengthy and costly probate process. Once you pay off the tax lien your name may be put on the deed, but someone may still challenge the will and your ownership rights to the property. Thus, in order to have a free and clear title to the property, it is better to probate the will.
The will needs to be probated before you can have the title in your name. However, if the value of the property, minus any mortgage or tax due, is less than $50,000 you can file an affidavit and you may not have to go through a lengthy and costly probate process. Once you pay off the tax lien your name may be put on the deed, but someone may still challenge the will and your ownership rights to the property. Thus, in order to have a free and clear title to the property, it is better to probate the will.