BK for the eldery

[keepsmiling]

i would never suggest this to anyone, but in this case it may be the answer....either get a home equity or something of that nature and pay the debt off.

I was going to suggest this as well. In the bass ackward world of BK, sometimes MORE debt is the better solution.

[tobee43]

i hear you keepsmiling, and most certainly agree...but on a 30 year payout she can pay it off right away and have low payments that are a tax deduction.

[keepsmiling]

GMTA
So OP, regardless of which option you choose, seems you need to #1) get a solid appraisal of home value ( absolutely NOT a drive-by); and #2) call some attorneys.

[BKAttyMI]

I'm an attorney in MI. You don't want a certified appraisal, you want a "market analysis" done by a realtor in the area to see what other similar homes in like condition are selling for on the open market. An appraisal is for refinancing and costs money, a market analysis is free.

[tobee43]

I'm an attorney in MI. You don't want a certified appraisal, you want a "market analysis" done by a realtor in the area to see what other similar homes in like condition are selling for on the open market. An appraisal is for refinancing and costs money, a market analysis is free.

true, and while i'm not a solid supporter of zillow.com they can at the least show you what the market is bearing in one's area. you can see what "similar" homes have actually sold for by using your address and just looking around the general area.

[TBA]

I have a question... Why consider bk at all? If your mom has no assets and your concern is saving the house, why not do a life estate quit claim deed? Or even a trust? Or even assign title to you now but continue to have her live in it?

In Mi, can they attach a judgement to the property? If you are worried about a claim against her estate, isnt homestead exempt property from creditors in Mi?

It sounds to me like you may also want to talk to an estate planning atty. BK may not even be necessary.

GL

[tobee43]

I have a question... Why consider bk at all? If your mom has no assets and your concern is saving the house, why not do a life estate quit claim deed? Or even a trust? Or even assign title to you now but continue to have her live in it?

In Mi, can they attach a judgement to the property? If you are worried about a claim against her estate, isnt homestead exempt property from creditors in Mi?

It sounds to me like you may also want to talk to an estate planning atty. BK may not even be necessary.

GL

a trust would be fine, but it doesn't get rid of the debt and can cause an estate to land in probate forever a day. i really don't know MI law about it, but i know in many other states to quit claim the deed to protect it from credit is not that simple on a paid piece of property. you have to deed certainly tax exempt monthly at a limited amount into either a trust or a person and there is an annual max amount. unless is works differently in mi.

[ohiogal]

Thank-you.This is very confusing.Sad a woman that worked all her life has zero assets to fall back on.

She has one priceless asset - YOU! and no Trustee can take that away. You're an awesome daughter to want to help her with this!

[tobee43]

very much agree with that. but a good daughter will also help protect her mommy's assets from the big bad wolf.

[DaisysMom]

If you do decide to get an appraisal of the home, call an attorney who specializes in BK's to refer you to an appraiser. My attorney suggested an appraiser who was BK friendly and worked hand in hand with my attorney. He really took every flaw and problem with the home and used it to decrease the value. My home is listed at over 70K on our county tax site but with all of the deductions for flaws he got it down to 40K and it cleared the exemption amount by about 10K. If yours does the same...well then...problem solved. It's worth a look anyway.

Good luck and it's great that you are looking out for your Mom.....I'm in the same boat. Mine's 85. No money problems, but lots of health/memory issues. We are trying to keep her in her own home as long as we can and it's a daily activity. Hang in there!!

DM

[laura58]

Thank you everyone.I will be speaking to a lawyer Tuesday.I just dont see how to clear the debt.I dont have that kind of money.Does anyone know anything about Trusts? My parents are divorced and my father had one made years ago to protect his property.Back to my mother...Im taking her credit cards away and shes acting like a mad dog..gurrr.

[tobee43]

trust law varies state to state. you need to get to a good estate atty to get the scoop in mi. i do handle a few trusts but not in your state

also i think LITR does some estate work as well, but in calif., again it varies in some cases very much state to state.

[TBA]

Again, I dont know if you really need to "clear" the debt if your goal is trying to inherit the house. Ask about a life estate when you meet with the attorney as well as a trust. And dont meet with just one attorney. Go see a few of them - take advantage of the free consults and learn as much as you can.

GL!