Brother would like to buy estate from siblings

[dragonrider99]

Greetings and Thank You. I am not sure whether to post this in this forum or in the Real Estate forum. If I need to re-post elsewhere, please let me know.

I am the Executor of my mother's estate. I have two brothers. One brother still lives in the home with his son who will be entering his third year of college. He is desperate to remain in the home for at least two more years. To that end, he is looking for a "white knight" to essentially finance him to be able to buy me and my other brother out. Here are the pertinent points:

Reverse Mortgage of approximately $240k that is due in the next 120 days before foreclose begins.
Credit card bills against the estate for approximately $18k
My legal fees so far... roughly $8k

Based on the condition of the home, I believe we can settle on an amount that gives myself and my other brother our fair share of the estate. This would be an agreed upon amount over and above what the final debt attached to the estate is determined to be.
For example:
Estate debt: $265k
My brother and myself buyout: $150k ($75k each)

I guess my main question is this: If he buys us out, is the sale treated just like a person off the street purchased the home? There would be an official closing, Title Search, Title Change, Recording of the Deed, etc. Can an heir to an estate simply pay off all debts and other considerations and "assume" ownership of the property? The Title would still be in my mother's name... yes? I am unsure how to proceed with this.

 

[army judge]

Greetings and Thank You. I am not sure whether to post this in this forum or in the Real Estate forum. If I need to re-post elsewhere, please let me know.

I am the Executor of my mother's estate. I have two brothers. One brother still lives in the home with his son who will be entering his third year of college. He is desperate to remain in the home for at least two more years. To that end, he is looking for a "white knight" to essentially finance him to be able to buy me and my other brother out. Here are the pertinent points:

Reverse Mortgage of approximately $240k that is due in the next 120 days before foreclose begins.
Credit card bills against the estate for approximately $18k
My legal fees so far... roughly $8k

Based on the condition of the home, I believe we can settle on an amount that gives myself and my other brother our fair share of the estate. This would be an agreed upon amount over and above what the final debt attached to the estate is determined to be.
For example:
Estate debt: $265k
My brother and myself buyout: $150k ($75k each)

I guess my main question is this: If he buys us out, is the sale treated just like a person off the street purchased the home? There would be an official closing, Title Search, Title Change, Recording of the Deed, etc. Can an heir to an estate simply pay off all debts and other considerations and "assume" ownership of the property? The Title would still be in my mother's name... yes? I am unsure how to proceed with this.

Reverse mortgages have many hidden pitfalls. They're a good thing.
That said, most homes owned by two or more people, where one party wants to sell, the other doesn't can be partitioned.
That requires the court to issue an order for the home to be sold, the proceeds split EQUALLY amongst the several owners.

In the case of reverse mortgages, those pesky, hidden pitfalls come into play.

I suggest the three of you visit (or arrange for a conference call) with an attorney. Then you can air and discuss your concerns, learn what pitfalls are present in mom's reverse mortgage. Most cases are slightly different.

Bottom line, partitioning is a legal option. Those reverse mortgages often can't be partitioned that easily. That said, you can buy anything. Everything has it's price. Those who funded mom's house aren't interested in owning it. They'll flip it in a heartbeat. You just want to know you're doing it correctly. My advice to everyone in any real estate transaction, shell out a few hundred to protect your interests. The seller's lawyer owes you no duty, nor do the lawyer's of other buyers, brothers or not.

Information from your state government about reverse mortgages in your state:

http://www.mass.gov/ocabr/consumer-...se-mortgage-loans-what-borrowers-need-to.html


The dirty low down on reverse mortgages from the feds, HUD:

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hecm/faqs_hecm



Okay, read this for additional reference and enlightenment purposes:







http://www.gosselinlaw.com/Articles/Reverse-Mortgage-Forward-Thinking.shtml


http://www.gosselinlaw.com/Practice-Areas/Petition-to-Partition.shtml


http://masslawlib.blogspot.com/2013/09/petition-for-partition-of-real-estate.html