Sister causes mom problems

[hwf]

A few years ago, my sister talked my mom into cosigning a car loan with her. My mom had no idea that she would be responsible if my sister defaulted. Last week, the car was repossessed. My mom is in her mid-seventies and her only asset is her house. When the car is sold, can the loan company come after her house for the remainder of the loan amount? Could I do a quit deed and have her sign the house over to me?

[uwishtoo]

A few years ago, my sister talked my mom into cosigning a car loan with her. My mom had no idea that she would be responsible if my sister defaulted. Last week, the car was repossessed. My mom is in her mid-seventies and her only asset is her house. When the car is sold, can the loan company come after her house for the remainder of the loan amount? Could I do a quit deed and have her sign the house over to me?

Hihgly unlikely they would sue someone on social security but yes do the quit claim - but do it soon - otherwise they might be able to get you with fraud for hiding assets. I dont know for sure on what the time frame is - shame on your sister taking advantage of an elderly woman !

[aaron]

If you do a quitclaim you risk exposure to gift taxes, risk having the transfer deemed fraudulent for purposes of collection, would lose any homestead exemption your mother presently enjoys against collection, and would lose the step-up in basis that would occur if you inherited the property. It's a common "gut reaction"-type proposal, but it can create a lot more problems than it's worth. Have your mother consult an estate planning lawyer to have a professional estate plan created to (a) maximize the protection of her assets against creditors, (b) for Medicare planning, and (c) to facilitate the inheritance of her property consistent with her wishes, while minimizing everybody's potential tax exposure.

[profiler_jack]

it would be highly unlikely they would take her house from her....the most common course of action would be for the creditor to file a lien against the house, which would be paid when the house is sold........

so she had one daughter end up throwing her in debt because she co-signed a loan, and a second daughter wanting to take ownership of her house "for her protection"? you may have the best intentions in the world, but it could appear you are also beiong opportunistic in this situation.......

just my thoughts......

[hwf]

I am not her daughter, I am her son. I have a brother and another sister who will
also be included on any paperwork. I didn't think I needed to spell that out. I have no interest in owning a house worth probably 25,000. Just trying to keep my mom a place to live.Sorry if that is being oppurtunistic!

[aaron]

(Some people get the wrong impression, or take a cynical view of things. It's not worth worrying about that.)

[profiler_jack]

i am admittedly a cynic.....and apologize if i offended you by my statement.....was not meant as an accusation, just a different perspective.......

[nomorecrime]

I was wondering how your mother did'nt know that being a cosigner on a car loan would'nt make her responsible. I am pretty sure that the dealership explained everything up front. and i can tell you this.....if your mother never cosigned anything before, she must have had some questions about it before she signed. How could she not have known? there are reasons....is she up in age? sometimes that has a lot to do with not being aware of the situation fully. I do feel bad that this happend to her. it really shows that she cares about her children and she wants the best for them

[nomorecrime]

I reread your post. your mother is in her mid seventies. looks like to me that her daughter took advantage of her age. I hope you can protect her against any further attempts by your sister to get more financial gain out of her in the future. your mother should be enjoying her last years remaining instead of dealing with all this