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Old 02-03-2014, 02:12 PM
 
1 posts, read 931 times
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My fiancee and I are currently living in her grandparent's old house. Her grandfather passed away and her grandmother is in assisted living. Her parents aren't in a big hurry to sell the house for their portion of the cash in the transaction, but her aunt and uncle are. So, we were thinking of arranging a mortgage for half of the property's value so the bank would pay the aunt and uncle and we would pay the bank back. The thing I wonder, is what do we do for her parents then? Do we do a rent to own kind of thing where we pay them additional rent every month, or do they just get half of the property's sale when we eventually sell? Has anyone heard of an arrangement like this before?
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Old 02-03-2014, 02:17 PM
 
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The only way you could do that is to pay 1/2 the mortgage in a down payment. A bank won't just finance 1/2 the house. Your parents need to buy the house from the estate, pay off the siblings from the proceeds of the sale, then you can buy out their portion if they want to do that.
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Old 02-03-2014, 03:46 PM
 
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Since her living grandmother is still the legal owner, she is the only one that can take out a mortgage on the property. If you and your girlfriend (or her parents) purchase the property, a mortgage can then be acquired to pay off the aunt/uncle. But, are proceeds from the sale needed for grandma's care?
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Old 02-03-2014, 04:08 PM
 
Location: Saint Paul, MN
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Quote:
Originally Posted by MnMomma View Post
Since her living grandmother is still the legal owner, she is the only one that can take out a mortgage on the property. If you and your girlfriend (or her parents) purchase the property, a mortgage can then be acquired to pay off the aunt/uncle. But, are proceeds from the sale needed for grandma's care?
This. Before the grandmother can qualify for assistance toward the cost of her (undoubtedly sky-high) assisted living/nursing home bills, she will have to deplete her assets. This means liquidating the house. And don't think you can buy it from her for anything less than full market value, either. Medicaid "look-back" scrutinizes any such transactions for a period of 5 years preceding the applicant's filing for assistance.
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