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  1. #1

    Unhappy Responsibility of Remaindermen for Mortgage

    This occurred in NC.
    Ok, my mother died leaving a life estate to her husband.

    The deed to these properties (one with a house and one with a rental) was solely in my mom's name, but hte mortgages were in both her and her husband's name and the equity loan was in her and her husband's name. I realize that this is screwy and quite possibly shady, but these are the facts.

    The the house property is now being valued at $200,000 (since the economic downturn in real estate in the country), but was valued at 234,000 in 2006. There is a $167,000 mortgage and an equity loan with a balance of $23,000 (we do not know the amount of credit in the equity loan because that info is being withheld by the executor as none of our business since it was in my mother and husband's names). The rental $160,000 with a $47,000 mortgage.

    We do know that my mom's husband has taken money from the equity loan since my mom's death.

    We have been told that the remaindermen are responsible for the taxes on the property and the mortgage principal, but my mom's husband is responsible for the mortgage interest and the equity loan. The executor claims that she talked to a lawyer and got this information but did not hire the lawyer.

    It does not make sense to me that my sisters and I are responsible to pay a mortgage on a house that we cannot sell and will have no rights to for several years and quite possibly 30+ years, especially since as we pay the mortgage principal my mom's husband can continue to hit the equity loan, thus decreasing our equity in the house, even as we pay.

    Moreover, if he is collecting rent on the rental, how can we not be entitled to any of that money, but still be responsible for the mortgage.

    Also if the mortgage we in my mom's husband's name with my mom, how could he no longer be responsible for it?

    If anyone can give me any information I would really appreciate it. It looks like all my mom will end up having left us is debt. We are currently trying to get an attorney in NC, but this is just more money out of our pockets (as there was only $33.00 in the estate beyond the property).

    T.I.A.

    Red

  2. #2
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    Default Re: Responsibility of Remaindermen for Mortgage

    The life tenant gets to rent the property and keep the proceeds. Sorry.

    Does he have life insurance on the home equity loan? If not, and it predates the creation of the life estate such that it is secured by the real property (as I expect is the case), that could really burn you when he dies.

    You are responsible to pay toward the principal because that amount goes to your remainder interest.

  3. #3

    Default Re: Responsibility of Remaindermen for Mortgage

    You may want to consider disclaiming or working out a deal to get one of the properties free and clear of the life estate. This may end up being more trouble than it is worth.

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