Now What's next??

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we live in Pa. and moved into my in-law's home they were building and had left standing half done. we moved in after talking to them and finished the inside. we've been here now 10 yrs. they eventually moved in with us and after a yr or so, my mother in law went into a nursing home. after her death, my father in law(84), having not filled out any paperwork that may have helped with the bill, had an outstanding balance of approx. $40,000.00. he decided to take out a loan to pay off the nursing home, and put our home up as collateral! he holds the deed, but we have been taking care of everything for yrs. there was an understanding that we would inherit the home after their deaths. we knew nothing of this until it was done. he informed me today that he didn't buy any insurance on the loan either. can my husband and i buy insurance for it? or are we going to have to pack up our family and move upon dad's death?there is no way we could afford to buy this home back from the bank, it's worth about 250,000. is there a way out of this mess?

 

[ALawyer]

Let's make sure I understand this. You fixed up his house, worth $250,000. The only mortgage on it is the $40,000 he put on it to pay off his wife's bills. That is certainily reasonable and responsible.

As I see it, there is $210,000 of equity in the house.

When the 84 year old dies to whom will he leave the house worth $210,000? Only to your spouse? If so, then perhaps the mortage stays in effect and you and your spouse can pay it off each month. Or if it is due in full at death, you can get a new mortgage for what is left unpaid on the $40,000 to pay off the old loan. Or you can sell the house and pocket the $210,000 less broker fees and taxes and buy another house.

But you sound annoyed that father isn't letting you get whole house without any mortgage. And that is unreasonable. BUT make sure he has a will leaving it to you, or better yet, deeds it to you with a life estate reserved to him

Life insurance on an 84 year old is likely to be prohibitively expensive.