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No will, no survivorship, just enough debt. Keep the house?

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elixer6

Junior Member
What is the name of your state (only U.S. law)? Oregon

Grandfather died 1 year ago. Grandmother was not married but lived with him for 35+ years. No common law marriage. No children together. House in both their names but no survivorship clause. Lots of debt, some joint. Grandfather had one daughter who had 6 children including myself. Older sister officially adopted by grandfather's parents. I was given/abandoned to my grandparents when 1-2 years old, only very informal paperwork. 4 younger siblings went into foster system. Mum owes a ton of child support and is homeless/uncontactable and lives her own "interesting" lifestyle; never part of the picture. Estate not yet in probate. Mum would likely quitclaim property and pass on executorship should she manage to be contacted.

Grandmother doesn't want to give up house; too many sentimental issues. I don't live at the house but I've been paying the mortgage (v.high ARM) for the last year with nothing left over for any out of pocket expenses for attorney fees, etc. House has maybe $50k equity, $25k for each. Estimated that if sold, it would barely cover grandfather's estate including existing debts, but this really varies with the market. If house is sold, grandmother can't reinvest in another house due to very bad credit and personal debts; creditors would probably claim most or all on my grandmother's side before it even hits a bank account (she can't keep one, it gets locked on first deposit). I assume I will *eventually* be appointed executor when the house goes to probate.

1. Is there any scenario in which my grandmother can keep the house? If not, is there any way she can re-invest the equity in her half of the house or transfer ownership and equity to me? If not then it makes little sense to pursue probate, just abandon it and let the bank eventually force it.

2. While nobody has yet been appointed, I assume that if it went to probate I would eventually become executor. Since it has been a year and the house has decreased in value due to the collapsed housing market, can I or my grandmother be held personally liable in any way with regard to loss in value of the house if there turns out to be more debts than equity?

3. If there is any equity remaining in the estate, will there be any way to claim it, or should I just assume it would all go to the government for child support payments?

4. If I simply stop payment on the mortgage and the bank forecloses, is there anything preventing me from buying it back at auction or at the foreclosed rate. It would probably go for less than the purchase price of the house minus any equity on my grandmother's side. I can't really afford the legal costs if they're not "bill the estate" which makes probate attorneys hard if it's not taken to probate; if I stop payment on the house then I can but not until; catch-22. :/

Any other comments on the situation would also be appreciated. Thanks.What is the name of your state (only U.S. law)?
 



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