Cosigning for a mortgage and---

[BTDretire]

Ya, I could just give it to her, but I worked hard and lived frugally, I shouldn't use a $0.35 coupon and just let $35,000 go away.
 I suspect I'll end up give her a Life Estate vs. Irrevocable Trust and then the property goes back to me at her death, or my kids.

https://www.investopedia.com/articles/investing/010716/life-estate-vs-irrevocable-trust-which-better-you.asp

Going that route you will still be tied to the crazy train and have liability.

What if she does not take care of the house and it is worthless/ uninhabitable or when she calls you and it needs repairs that she can not afford? What about the fines from the city when it is not taken care of and gets fined?

How would you feel leaving your half to your kids and having them deal with her and everything that comes with it if you pass away first?

Seems like a whole lot of downside for no upside.

Put emotions aside think about it like some random person left it to the two of you how would you feel then?

Sent from my Pixel 2 XL using Tapatalk

Maybe I don't understand, but I thought if I gave her the property with a life estate, it was her's until she died and then it reverted to my name.
 I may have given the wrong impression about condition of the house, It is far from great, but it is not falling down either. The state values it at $67k and it is probably worth that or more. The house won't show well because  one of the two is a bit of a hoarder, I went up there after watching the Aug 2017 Solar eclipse with my daughter, it's a squeeze to get through the kitchen the living room is only half usable because of to much stuff, we hardly had enough room to sleep. The have tarps covering exess item between the garage and house and the garage is packed full of items.
 I just convinced my self, the place would never sell with them living in it. :-)

Not a lawyer, but since it's only half yours, only your half of the life estate would revert to you, right? So then you're fighting with her kids over her half that they just inherited. I can't imagine that's going to be any easier than what you're facing right now.

Not my understanding, I would give her the life estate in exchange for the propery returning in full to my estate at her death.

35 grand isn't chump change in my world, but even I would just let her have the damn thing if selling it isn't a viable option. It's frustrating and it doesn't sound fair, but short of forcing a sale, you're never going to see much money from it and it's going to give you years of heartburn. It sucks, but a prolonged fight over (in the grand scheme of things) not that much money doesn't seem worth it IMO. You've worked hard and you're retiring - you're not the loser in this situation unless you let it consume you.

edit: just realized that you're the "build a wall" guy from another thread. Since it seems you enjoy spending money on things to make a point rather than accomplish an actual goal, then carry on with whatever your ridiculous plan is.

I don't care to get off on another subject.
Oh what the hell, why do rich democrat politicians build walls around their homes?
 Because they work.
[MOD NOTE: let's stay on topic.]

[PDXTabs]

Oh what the hell, why do rich democrat politicians build walls around their homes?
Because they work.

Could you please provide three examples of rich democratic politicians who chose to build a wall along one side of their property while leaving the other three sides without a wall?
[MOD NOTE: please stay on topic]

[BNgarden]

...
 Maybe I don't understand, but I thought if I gave her the property with a life estate, it was her's until she died and then it reverted to my name.

I may be missing something, but aren't you making a big assumption that she'd think it was good value to offer you the WHOLE property (life estate reversion wholly to you) in return for living in it?  Wouldn't she think you should only get the half?

[BTDretire]

...
 Maybe I don't understand, but I thought if I gave her the property with a life estate, it was her's until she died and then it reverted to my name.

I may be missing something, but aren't you making a big assumption that she'd think it was good value to offer you the WHOLE property (life estate reversion wholly to you) in return for living in it?  Wouldn't she think you should only get the half?

 Well since she has been getting my half at no charge, she might. But if I frame it as I'm going to force a sale
if you don't take a life estate with the remainder going to my estate that might be a good choice for her.

[BNgarden]

Other questions: do you know for sure that the reason she can't get a mortgage is Edit: not she already has one?  And, if she did get a mortgage how would you ensure she transfers the funds obtained to you?

[Imma]

Other questions: do you know for sure that the reason she can't get a mortgage is Edit: not she already has one?  And, if she did get a mortgage how would you ensure she transfers the funds obtained to you?

Is it legally possible over there for a person to mortgage a jointly owned home without notifying the other owner? That would be a serious concern. If it is, you really do need to get rid of that property even if she hasn't mortgaged it yet.

[BTDretire]

Other questions: do you know for sure that the reason she can't get a mortgage is Edit: not she already has one?  And, if she did get a mortgage how would you ensure she transfers the funds obtained to you?

Is it legally possible over there for a person to mortgage a jointly owned home without notifying the other owner? That would be a serious concern. If it is, you really do need to get rid of that property even if she hasn't mortgaged it yet.

I don't know the answer, I suspect, that when I show up on the title the bank is going to have questions.
 I talked with my sister last night, she has her 2 year work review in Feb. She said she is going to try to get it early and ask for a raise, last time here income kept her from qualifying for the loan.
 So, still a waiting game.

[LoanShark]

No way in hell would I cosign...

[Cassie]

Too many pitfalls with a life estate. Give it to her or take whatever amount she can get a loan for.

[MDfive21]

You may also find out that she's lying about not qualifying because the status quo is pretty darn nice.  I thought your half was $35k (not $17.5 k), but either way, that's a pretty small amount and the bank would only be financing 50% of the property so if they have to foreclose they would be in decent shape starting from day 1.  So it's curious to me that she didn't qualify.  So go to the bank with her, find out what they will give her, and accept it, if you aren't willing to just sign it over.

Yes, OP's half is $35k.  But OP mentioned not needing the money and wanting to give it to his/her kids (plural).  So assuming 2 kids, they'd each get $17.5k.  Less if OP has more than 2 kids.  Annie101 commented, and I agreed, that the kids might not think it's worth the family strife this may cause for that amount of money.

Also, I agree that it's odd that she can't get a $35k loan for 50% of the house.  At first, I thought it might be because the amount was too low that many banks would not bother with it.  But OP suggested cosigning as a possibility, so it seems like her credit/income was the problem and not the loan amount.

Given that the OP's sister has children, and friends, and a job, has taken all the cash from the estate and had 7 years of free housing to boot, I don't see any reason for OP to subsidise her further.  In those circumstances, I'd be tempted to force sale of the house even if it costs the whole of the proceeds.

Agreed that the sister has already been given more than her fair share and does not have a right to be subsidized any further.  That being said, the sister may see this as her sibling essentially kicking her out of her home and leaving her with little to live on.  It could potentially destroy that relationship.  Maybe the OP is ok with that, but it's something that should be considered before going that route.

it looks like either way this goes, the relationship is F'd.  either bro thinks sis is screwing him out of $35k+growth, or sis thinks bro is screwing her out of a place to live.

who is going to be the bigger sibling and cave?? 

imo the bro has already paid enough and if sis won't meet halfway after a long face to face conversation, he should either quitclaim to her or force the sale.

eta there is no way in hell i would cosign on this or stay in this situation for any longer than it takes to fly over there and have the talk.

[MDfive21]

OP thanks for posting your story.  i don't have too much to add but these posts are giving me a framework for dealing with my own family estate when my parents eventually pass.

[ericrugiero]

Based on the selling tradelines thread, you could add her as an authorized user on your credit card(s) which could significantly raise her credit score.  DO NOT give her a copy of the card so she can't actually spend your money.  The older the card and the higher the credit limit the more it will help her.  With her higher credit score maybe she can get the loan. 

I would probably push a little more on the loan aspect to get my money.  You can use the angle that you are helping with the tradeline (you really would be helping) to give you an opening to get involved and find out more info.  You always have the option to force a sale which gives you some leverage. 

Alternatively, take out a reverse mortgage on the home with each of you getting 50% of the proceeds each month.  Use part of your proceeds to pay for the insurance you need to reduce liability.  I haven't heard great things about the reverse mortgage as a product but at least you are getting something and she still has a place live. 

[freedomfightergal]

I don't know how financially comfortable you are, so my thoughts are: -

1.  If you're comfortable and have enough without your share of the house, then gift it to her.  Firstly to avoid all liabilities that seem sure to surface based on your description eg unpaid taxes.  Secondly full-time 24 hour care of an ailing relative is expensive so maybe to feel better about it, think of it as compensation for her lost income.

2. If you don't have much yourself and really need it, then it seems that you're only option is to force it to be sold and split it.  Or give it to her on the basis she pays rent of X for so many years and know that you probably won't receive it, but maybe some?

Good luck.  Deaths in the family tend to make people nuts.

[BTDretire]

I don't know how financially comfortable you are, so my thoughts are: -

1.  If you're comfortable and have enough without your share of the house, then gift it to her.  Firstly to avoid all liabilities that seem sure to surface based on your description eg unpaid taxes.

  I never said she hasn't paid the property taxes, she always has.

  Secondly full-time 24 hour care of an ailing relative is expensive so maybe to feel better about it, think of it as compensation for her lost income.

Ya, she didn't really lose income, she wasn't working and basically was supported by mom while caring for mom. Which is fine.

2. If you don't have much yourself and really need it, then it seems that you're only option is to force it to be sold and split it.  Or give it to her on the basis she pays rent of X for so many years and know that you probably won't receive it, but maybe some?

Good luck.  Deaths in the family tend to make people nuts.
[/quote]
 As of the latest conversation, I'm waiting to see if her longer work history and possible raise might allow her to get a mortgage. I expect by the end of February I will know the answer.