Help! Will I lose the house?

[alynn5]

What is the name of your state (only U.S. law)? Maryland

My mother left me her house which is paid in full. I moved in with her to take care of her while she was ill, she passed away in May. She was on medical assistance and the State of Maryland has put a lien on her Estate. I do not have the money to pay off the lien it is $60,000 and I can not get a loan because of bad credit and no collatoral. Am I going to have to sell her house? If so, What happens to the extra money that is left after paying back State of Maryland? Her will clearly states I get the house. Will this money then become part of a residuary estate? Her will states that the residuary estate be divided between her 8 grandchildren. Please help with advice! Thanks!

 

[las365]

What is the fair market value of the house?

 

[alynn5]

I believe $180,000

 

[seniorjudge]

I believe $180,000

I would think that would be good enough for a loan even with bad credit.

There will be a very high interest rate.

 

[truthandhonor]

Begin interviewing to hire an attorney. The eight grandchildren might decide to fight you for their "fair share." If they are greedy and evil they will not care about you..just getting your money and taking your house. If the grandchildren get together, all in all, the legal fees are enough to eat up the estate but if they win, then you might be left without a home in which case you will be paying rent for the rest of your life and whatever money you would recieve from the estate will be wasted and disipated on the rent and eventually run out. Therefore...

It was your mother's intent AS STATED IN THE WILL that you get the house. It seems to me that a good attorney who is a litigator not merely an estate planner, and who is willing to work for "DEFERRED PAY" may be worth his weight in gold. Let us know how you fair and best wishes.

 

[nextwife]

Doesn't the will ALSO say to use her assets to pay her creditors?

If there are not other sufficient assets to pay them, then the house needs to be sold, or the debt financed off and the creditors paid. You can't just choose to ignore the estate's responsibility to it's creditors..

 

[Texas Pooh]

Who is the executor? Has probate been opened?

Are there other assets besides the house?

Are there other debts?

The lien is on the estate, not just the house (although if the house is the only asset, the distinction is irrelevant).

 

[alynn5]

Nextwife- There is no other assets besides the house and I am not planning to ignore the estate's responsibility to it's creditors. I was hoping there was a way I could take a home equity out on the house and pay the creditors but the house is not in my name so I don't think that can be done.

Texas Pooh-I am executor and yes probate has been opened. There is no other debt.

 

[nextwife]

Nextwife- There is no other assets besides the house and I am not planning to ignore the estate's responsibility to it's creditors. I was hoping there was a way I could take a home equity out on the house and pay the creditors but the house is not in my name so I don't think that can be done.

Texas Pooh-I am executor and yes probate has been opened. There is no other debt.

Actually, if you can get a loan to pay off the creditors, it could be treated as a purchase money mortgage, and, logistically, it can be done.

 

[Texas Pooh]

I'm with nextwife. You should be able to get a mortgage on the house to pay the creditors. Even with bad credit, the loan amount is only 1/3 of the value of the house.

Go talk to a bank. Tell them you are inheriting the house, and need a mortgage to pay the creditors. The house is the collatoral.

This is done often.