Buying out my sister's half / Upside down in current house

[kamjam04]

Hi! My father passed away in January and he left his house to my sister and me. I want to buy out my sister's half and move in. The house is paid for.
Here is my dilemma. 1. My husband and I have bad credit. 2. We are upside down in the house we are currently living in.

My dad's house - worth around 120,000


My house worth around $60,000 (we owe $88,000)


My sister needs the lump sum so her holding a mortgage for us is not an option.

What is the best way to handle this?

 

[army judge]

Hi! My father passed away in January and he left his house to my sister and me. I want to buy out my sister's half and move in. The house is paid for.
Here is my dilemma. 1. My husband and I have bad credit. 2. We are upside down in the house we are currently living in.

My dad's house - worth around 120,000


My house worth around $60,000 (we owe $88,000)


My sister needs the lump sum so her holding a mortgage for us is not an option.

What is the best way to handle this?

You've already identified the BEST way as not available to you.
Another option is to request a court to partition the property, meaning a court ordered sale and division of the proceeds between you and sister.

That doesn't mean you'll receive half of 120K, simply HALF of what the sale brings, less fees and costs.