Mortgage and Debt?

[Jennifer12]

I have been living with someone for 8 years. we are both on social security as our only sources of income. I owe $50,000 credit card debt from 1996 when I was married. I could not pay and my ex would not pay.
Now I am inheriting $30,000 and my live in friend and I want to buy a house, we are elderly. I will give him the money and he will take a30 year mortgage, I can not be on the house as the collection agencies would take the house away.
If he leaves me the house in his will, with a mortgage on it, can I just take over payments with my social security check or will I have to qualify and take out a new mortgage on what is owed. I could never get a loan as I owe so much money. Would they just throw me out in the cold? How can we arrange doing this with a house and have me keep living there if he dies?

 

[presutin]

Make sure that your $30K inheritance is used for the right purpose. Hire an attorney to protect your rights and future property and to guide you on how to resolve the old debt issue so it does not come back to hunt you if anything happens to you or your friend.

 

[lwpat]

If the debt is that old and they have not taken you to court then the Statute of Limitations has run and they can't legally collect. They can still call you but there is nothing they can do and you can get it off you credit reprot if it still shows. There is a 7 year limit on your credit report and the longest credit card SOL I know of is 6 years. You must not have made or agreed to make any payments during that time.

Wills can be changed at any time. If you do not have any relatives, my suggestion would be for the title to be in both names with right of survivorship. There may be other issues such as a living will, POA, etc so you do need an attorney before you actually sign anything.

 

[Jennifer12]

The SOL in Ohio is 15 years so U still have to wait to 2011
As I am 67 and he is 74 we cant wait that long to get a house

 

[presutin]

As I had previously posted, seek the advice of an attorney in your state to protect your investment and future assets and to make sure the debt is not going to be a factor on the home purchase. Good Luck!

 

[Jennifer12]

Thank you for the advice

I know if my name is on anything the credit collection agencies can seize it. I must find out if I can just continue to live in the house and pay the payments with my s.s.check. If the only put a lien on it I dont care, as I am 68 and will live there the rest of my life and never sell it. I just need to know if they could force a sale and throw me out. If they cant sell it out from under me a lien would be fine with me as I have no one to leave it to.

 

[lwpat]

If the house is in his name, it will go into his estate and be transferred in accordance with his will in effect at that time. The house will have to be sold to pay his debts unless there is sufficient money in his estate. If he goes on Medicaid they may also have a lien on the house. Any of his creditors can force a sale.

What was the situation where you acquired the debt? Are you sure you are legally responsible? If you owe the debt then you really need to use the 30,000 to try and satisfy all the claims. Usually they will settle something this old for half. Be sure everything is off your credit report and then buy the house together with ROS assuming he is agreeable.