No one is responsibe for someone else's debt at their death. For the debt to be a heirs responsibility they have to have their name on the note/deed.
Reverse mortgage
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dirtydeed
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Another form of transfer that works similarly is granting a life estate. Been around a long time. You buy the property and allow the person to live there. When they die you get it. An attractive option for some people. But not the majority of people.
GreensvilleJay
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re: No one is responsibe for someone else's debt at their death.
ok, the 'ESTATE' has to settle the revmort debt,after that THEN the estate gets dispersed. The 'money lender' will have the house/property listed as collateral on the loan, same as a 'line of credit' here in Ontario( at least with Royal Bank)
ok, the 'ESTATE' has to settle the revmort debt,after that THEN the estate gets dispersed. The 'money lender' will have the house/property listed as collateral on the loan, same as a 'line of credit' here in Ontario( at least with Royal Bank)
Except that at least in Minnesota, if one has a life estate on a piece of property, and they then accept county aid to pay for any assisted living, the county will place a lien against that property, for that amount, and you will be on the hook for that lien.
We went through it with my in-laws on a cabin, and acreage that they gave us with a life interest. There is much more to the story, but when they both had passed, we didn’t actually owe any money, but we could have if my Mother-in-law had lived even a month longer.
The reverse mortgage companies say "it's not a scam to take your house" but that's exactly what it is. It's not a scam, they give the owner money. But they could make a year or 2 of payments, them you die or have to be moved into a nursing home and then they take your house for peanuts.
I guess if your kids are disappoints and you don't want them to get your house it's a good deal.
I guess if your kids are disappoints and you don't want them to get your house it's a good deal.
Biker1mike
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Lets face it, there are some elderly that are cash poor but property rich. They may be too proud to admit their station or they have no support from relatives. As bad as a reverse mortgage can be it may be a life line to these people.
It is a shame that so few people are willing to take in their elderly parents late in life.
We maintain a standing offer to have mom take over the downstairs as long as she she does not preach to me about cigars and bourbon.
It is a shame that so few people are willing to take in their elderly parents late in life.
We maintain a standing offer to have mom take over the downstairs as long as she she does not preach to me about cigars and bourbon.
My dementia Mother was secretly talked-into a “life estate deed” by my brother who worked with a sneaky-lawyer who was my Moms neighbor. (He knew Mom had been adjudged incapable of making decisions two years earlier but our brother had hired him to get-around the will.)
Basically… brother gets the house when Mom dies… despite the will she and Dad had made years previously which gave the estate (and house) equally to all 3 of us.
When I found out… My sister and I retained a lawyer who pointed out that Mom’s “life-estate deed” could only give the crooked brother the house…IF she still owned the house at her death.
So my sister and I (we were Moms’ executor and standby-executor) SOLD the house before Moms’ death. (Sneaky Brother cannot inherit a house Mom doesn’t own at her death.)
The money went into the estate which was equally shared by all of us as Mom and Dad had planned years earlier in their will.
Brother and his Filipino wife (who had convinced him to pull the stunt) didn’t get what they thought they’d get… in fact….in anticipation of their sneaky windfall…they’d spent a ton of money they didn’t get after-all… and are now deep in debt. My sis and I have disowned them.
Yep, reported that dope. The financial posts on here always get brought back to life by a spammer...
Who controlled Congress in 1988?
Democrats regained control of the Senate and held the House after the 1986 elections. Texan Jim Wright succeeded the retiring Thomas P. “Tip” O'Neill of Massachusetts as Speaker. The 100th Congress (1987–1989) reacted to several crises.
Reverse mortgages are “non-recourse” loans, which means that if you default on the loan, or if the loan cannot otherwise be repaid, the lender cannot look to your other assets (or your estate’s assets) to meet the outstanding balance on your loan.
GreensvilleJay
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the home is the collateral for a reverse mortgage. When the homeowner moves or dies, the proceeds from the home’s sale go to the lender to repay the reverse mortgage’s principal, interest, mortgage insurance, and fees. Any sale proceeds beyond what was borrowed go to the homeowner (if still living) or the homeowner’s estate (if the homeowner has died). In some cases, the heirs may choose to pay off the mortgage so that they can keep the home.
so the estate is liable to pay off the entire reverse mortgage amounts.....from the asset of the house.
Odds are real good the value of the house will have gone up,so selling the house will pay for the amount of the reverse mortgage.
so the estate is liable to pay off the entire reverse mortgage amounts.....from the asset of the house.
Odds are real good the value of the house will have gone up,so selling the house will pay for the amount of the reverse mortgage.
The First Proposal, approved by the Senate, was in 1983 and was brought by Republican Senator John Heinz.
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