Mortgage and debt?

[Jennifer12]

What is the name of your state (only U.S. law)? Ohio
I am getting $35,000 from an inheritance in a few months. I currently am living with some for some years. We are both elderly and only have social security checks for only sources of income. We rent. I owe $50,000 credit card debt from a bad divorce in 1996 my ex ran them up in my name. I could not pay and he would not pay. Collection agencies have been after me. Now my question is can me and my friend buy a house and have it in only his name? I would use the $35,000 for a downpayment by giving it to him.
Since it would be a 30 year mortgage and if he should die and leave the house to me as a live in friend, and there is a mortgage will the mortgage company just let me take over the payments without having to qualify for a new loan that I could never get?
Or would they just throw me out into the street?
If I would be allowed to live there and pay the mortgage with my s.s.check can the collection agencies take the house as it would not be in my name or would it be if it is left to me in his will? Help I dont want to be thrown out. How could we go about arranging all of this?

[LindaP777]

Option #2 - Take the $35,000 and negotiate a total payoff on what you owe from the credit card debt.

[Jennifer12]

I am 68 and he is 74 It is the only way to ever get a house. I did not cause or make these debts. They were soley made by my exhusband in my name. I cannot prove it, but they were not mine and I cant pay what was not mine.

[LindaP777]

Originally Posted by Jennifer12

I cant pay what was not mine.

Sure you can!

[wyett717]

If your friend has a will, he could leave the home to you and you could continue making payments on it. Even if there is no will, you may still be able to live in the house and make the payments with him as the mortgagee.

If you leave that large debt unpaid, you could potentially be setting up your next of kin up for a disaster after your own death. Whoever is put in charge of your estate will have to figure a way to take care of your debt.

I cannot prove it

Can anyone prove that you did NOT rack up that debt?

I cant pay what was not mine.

Yes, you can. And I'm confused. You said you would take over payments on the house should your friend pass away... this would include you paying for something that is not yours either. A bit of a double-standard, if I may say so.

[Jennifer12]

No, I cant prove anything, as he ordered me to sign under physical and emotional threats.
I never worked so I was terrified of being left homeless and in bad health so I just signed what ever he told me so he wouldnt leave me.
Then after he racked it all up he left anyway and I found my friend who took me in.
I explained to the judge and all he said was he didnt blieve me and i had no proof. so he ordered me to pay all those bills since my name only was on them even though he knew I didnt work ever and he siad my ex should pay his.
Now in bad health I cant pay anything out of only my s.s.check.
I will just wait until all these SOL expire in 1994 and 1996 so I guess they will in 2011 in Ohio
Mwanwhile we want an older little house while we are still alive, at 68 and 74 you never know how much longer you have left when your health is not good.
As far as heirs to leave the house to, there arent any. So I guess the state will take it when both of us are gone.
I live with my friend now for years and we will always live together so I could continue paying the mortgae with my s.s check as we would be doing while he is alive. my check is much larger than his is. so we need both checks to be able to do it.

[Zigner]

Originally Posted by wyett717

If your friend has a will, he could leave the home to you and you could continue making payments on it. Even if there is no will, you may still be able to live in the house and make the payments with him as the mortgagee.

No, when the person dies, the mortgagee will call the loan due. That's just the way it works.

[wyett717]

No, when the person dies, the mortgagee will call the loan due. That's just the way it works.

My mistake, sorry! I thought that if the payments were still made, there isn't reason to bring the balance due. Just curious, how does the bank automatically find out about a mortgagee's death?

[las365]

I am 68 and he is 74 It is the only way to ever get a house.

I'm no financial planner, but what is the advantage to either of you in getting into a mortgage at this stage of your lives? If you have enough to pool your cash and buy a home outright, that would be one thing, but I see no reason whatsoever that, for you, buying a house is superior to renting.

[FlyingRon]

Originally Posted by Zigner

No, when the person dies, the mortgagee will call the loan due. That's just the way it works.

In this case you are probably correct. However, in the case of coownership (or even when their is some sort of family relationship), the bank is enjoined on calling the loan.

[LindaP777]

Originally Posted by Jennifer12

I am 68 and he is 74 It is the only way to ever get a house. I did not cause or make these debts. They were soley made by my exhusband in my name. I cannot prove it, but they were not mine and I cant pay what was not mine.

I would ask if banks even give 30 year loans to 74 year old people? Does he have enough income to cover the mortgage?
And I still think you need to pay off your bad debts.

[Jennifer12]

We would buy the house in an LLC and our names would not be on it, only the company we will make up. Then age limit or creditors cannot touch us only the LLC
The reason is rental is run down, landlord problems, noisy neighbors, etc. and you cant fix anything up. A downpayment we can get would give us very low payments, way less than rent.

[dmiller12]

We would buy the house in an LLC and our names would not be on it, only the company we will make up. Then age limit or creditors cannot touch us only the LLC
07-09-2008 07:58 AM

You are NOT correct. Lenders are not going to lend to newly formed LLC with no credit history. You'll be personally responsible for the debt in the same way you would if you took title as individuals.