need ideas to keep from selling family home

[Michael Lauther]

We recently Inherited Our family home in Bethpage NY. There are 4 grown children that will share equally in the estate that consists of the residence worth approx. 320,000 to 350,000 and 20,000 in government bonds. No other cash.

The challenge is that one of the four beneficiaries has lived in the home for the last 51 years and has shared the home with her daughter and husband along with our mom who fully supported the home. Understandably our sister wants to remain in the home but will not currently qualify to get a mortgage to compensate the other 3 siblings for their share. Her credit score is approx 620 but her husbands is in the 500? and he is on disability with an income of around $4000 monthly and a candidate for bankruptcy. His financial problems are separate from my sisters but currently his is the only income and My sister is unemployed looking for work. Her anticipated income would be around 2000 monthly.

The other three siblings would not qualify for a mortgage on there own for reasons including already owning property that would make the debt to income ratio untenable and in one case troubled financial history.

I am thinking that one solution would be for us to accept the property and then transfer it to either a trust or an LLC which would rent it to My sister untill she could qualify to buy the others share. The thought would be that we could then possible qualify for a loan to satisfy those of us that need the cash or a portion of their inheritance and adjust the trust or LLc accordingly.

Any Thoughts would be appreciated.