My brother couldn't get a home loan because of his bad credit so...

[delta75]

What is the name of your state? NC
My younger brother has filed for bankruptcy twice, foreclosed on one home and been married four times. He's a very irresponsible and selfish person. Now he has gone and convinced our 80 year old father to go get a home loan in his name (my father's) for a brand new house for him (my irresponsible brother) to live in. My brother is paying the mortgage, taxes and insurance on the home to my father.

My father has a will stating that all of his assets be divided equally between me and my brother. My father told me that when he dies he wants us to sell the house that he's living in (my father's) but he doesn't want my brother to be put out of his home.

My question is...what will happen legally when my father dies? I don't want to sell my brother's house (he has been making the payments) but since it's in my father's name doesn't that mean that any money that we get from the sale of dad's home and cars have to go toward the loan that he took out for my brother's home?

I don't think my brother should be the sole benefactor of my dad's hard earned money. My dad doesn't think so either but...he said he doesn't know what to do about it now. Any suggestion would be greatly appreciated.

***My dad just told me that my brother insisted that his (my brother's) name be put on the deed for the new house (even though he is not listed as a borrower).

 

[Dandy Don]

If brother is paying all the expenses for the home, why isn't it in his (brother's) name?

 

[delta75]

Nobody would loan my brother the money. He filed for bankruptcy 6 months prior to his decision to get the new house. Also, he has lost everything he's ever owned including: wifes, jobs, and one child due to his chronic gambling and alcoholism. His only child hasn't spoken to him in over fifteen years. He's getting unemployment benefits right now and I know for a fact that my father has to cover the mortgage for him some months. He's only been in this house for a few months and already he's having trouble making the house payments. By the way, my father came up with the down payment for the house for my brother with the condition that it be paid back with in two years. He hasn't paid a cent. What a surprise. I know this is long and I do appreciate any guidance.

 

[JETX]

My question is...what will happen legally when my father dies?

Rather than ask non-relevant inane question(s), the CORRECT answers are:
Presumably, since he has a will, it will be submitted to the appropriate probate court and the executor/personal administrator will be required to abide by its terms.

I don't want to sell my brother's house (he has been making the payments) but since it's in my father's name doesn't that mean that any money that we get from the sale of dad's home and cars have to go toward the loan that he took out for my brother's home?

It depends on how the title is listed on the property. If the title to the property is in your fathers name ONLY, then the property will become a part of his estate and fall under the terms of the will. However, if your brothers name is on the title (with or without your father), then the ownership and transfer of the property will depend on how the title is 'styled'.
As for the mortgage on the property at the time of his death, that will become a liability of his estate and would presumably be sold or refinanced into someone elses name.

I don't think my brother should be the sole benefactor of my dad's hard earned money. My dad doesn't think so either but...he said he doesn't know what to do about it now. Any suggestion would be greatly appreciated.

If your father really feels this way, he should talk with a qualified estate attorney and have his will written in such a way as to allow for his 'feelings' to be represented.

My dad just told me that my brother insisted that his (my brother's) name be put on the deed for the new house (even though he is not listed as a borrower).

And with that.... several of your options have been removed.

 

[delta75]

Thank you for the suggestions. Since his will was written several years ago there are no provisions for the "second" home. It only states that all assets should be divided equally between me and my brother. My father and brother are both listed as owners on the title. My brother and myself are listed as executors for my father's estate. I know this is going to be a big mess for me to straighten out when my father dies. He's eighty years old and in declining health. He has apologized to me and said that if he could do it over again he would have never have gone to the bank for my brother. My warning to anyone reading this is...never under any circumstance sign your name for another person's debt.

 

[JETX]

He has apologized to me and said that if he could do it over again he would have never have gone to the bank for my brother.

This can be resolved relatively simply. Have him rewrite his will to allow for the 'benefit' that the son is going to receive in the property 'gift'.
For example.... if the property gift is worth $100,000.00, then any estate distribution will be offset by that amount. That way the distribution will be 'fair and equal' (in theory) to all.

 

[Dandy Don]

Can father afford the financial strain of continuing to make the monthly payments? If not, then he should get out of them now and let son grow up and start taking care of his own responbilities.

 

[JETX]

Can father afford the financial strain of continuing to make the monthly payments? If not, then he should get out of them now and let son grow up and start taking care of his own responbilities.

More stupidity from 'Dandy Dunce'!!
The father making the payments or not has nothing to do with this.
The fact is:
The mortgage is in his name, so 'letting the son grow up' has nothing to do with it...... and is flat out stupid!!

 

[delta75]

Can father afford the financial strain of continuing to make the monthly payments? If not, then he should get out of them now and let son grow up and start taking care of his own responbilities.

I've been telling my father the same thing for over thirty years! And no, my father can't afford this extra burden. He's living on social security and a small pension from the military. I've watched him try again and again to pull my brother out of his self imposed life of misery. My brother has prayed upon our father's goodness since we were teen-agers. I'm trying to persuade my father to sell the house. Since it was purchased such a short time ago ... there's no equity in it. I'm assuming that my brother would have to ok the sale since his name's on the title. And I know that will never happen.

 

[Dandy Don]

Thank you, delta, for confirming my suspicions. JETX is the stupid one if she thinks your father wants to continue paying someone else's house payment, and yes, the son does need to grow up and be responsible for his own living arrangements and not depend on someone else.

 

[JETX]

Thank you, delta, for confirming my suspicions. JETX is the stupid one if she thinks your father wants to continue paying someone else's house payment, and yes, the son does need to grow up and be responsible for his own living arrangements and not depend on someone else.

Lets see...
Father is responsible for debt. Son is paying. Father will take the 'hit' if son stops paying.
Dandy Dunce says: "Can father afford the financial strain of continuing to make the monthly payments? If not, then he should get out of them now and let son grow up and start taking care of his own responbilities."
How do you propose for Dad to 'get out of' the monthly payments..... when the title is in son's name?? If Dad lets sone 'grow up and start taking care of his own responsibilities'.... I guess you forgot that Dad gets the foreclosure on HIS record!!
And you call me 'stupid'??

BTW, what 'suspicions' do you now magically claim to have had?? Your posts offered nothing but WRONG answers.

 

[HomeGuru]

Dandy Dunce strikes again. There goes the neighborhood.