Expert: Dottie Worthington - 7/12/2010

Question
My mother would like to sell our family home. The home is designated to go to four siblings. It has been agreed that I purchase the home and pay my siblings. I am not sure how this will work out unless I do a total mortgage. I was hoping to have the title transferred and pay them off using monthly payments and a home equity loan. Can you help me identify the pros and cons of both of these options? One thing I can think of is that the home needs work. If I max out on a loan to pay everyone, then I won't have money to repair the home and it needs repairs before I move in.I am also wondering about how a sale will affect my mom's taxes as compared to transferring the title to me.

Answer
If the home is paid for you could look into doing a reverse mortgage.

They will do an appraisal for you.  Ask your mother's estate attorney about the tax consequences.

You can get a mortgage to pay your siblings but the bank is going to have the house for collateral, and will want to pay your mother with the proceeds. Ask your estate attorney the best way to handle it in the state you are in.  Good luck.