dying friend has a vacant house- want to help

dying friend has a vacant house- want to help

Member since 2022 · 5 posts · 2 votes

I have an older single friend who went out of town to visit family for a few months, and while she was gone she had a brain tumor diagnosed and has been told she has maybe 2 years to live. She isn't planning to come home, though she has a house here with a mortgage.

I genuinely want to help her out while she is still alive, and of course I would have an interest in acquiring her house after she dies (no family to pass it on to that I'm aware of). I have experience in short and medium term rentals, and feel I could fix up her house (would need some basic things like paint) and make a medium term rental. 

Would it be rude, or too much, to ask her about assuming her mortgage and home title in exchange for monthly proceeds of any profits until she dies? The house is sitting vacant right now (with her furniture) and needs someone to take care of it at least, and I would be willing to make the time to do everything to upkeep it and pay the bills, and forward her any profits for now, in exchange for me keeping them later (after her death).

I suppose you may say it depends on how much equity she has in the house... and I'm not sure the exact numbers but it's probably somewhere around 20k on a house that's worth around 100k. May be able to make $600/ month

I'm just not sure if that would be taking advantage too much. I don't really have any cash to pay upfront for it. I would rather assume the current mortgage and terms (low interest rate!) if possible. But don't know if I'm helping her out enough to justify what I'm asking for. ALSO how to word it asking her in the first place!


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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
3y

Ask her what her plans are.  If you want to buy it, see if she's willing to sell it.  She may want to sell it and use any equity in the home.

She has family (you said she went to visit them). They may not be her children, but she may plan to leave her stuff to them.

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    3y

    Ask her what her plans are.  If you want to buy it, see if she's willing to sell it.  She may want to sell it and use any equity in the home.

    She has family (you said she went to visit them). They may not be her children, but she may plan to leave her stuff to them.

  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    3y

    I would tread very carefully here. Your intentions may or may not be altruistic, but others (including the courts) might easily see this as elder abuse or similar. Or worse.

    I would want her to ask me for help first so it comes from her. Even appearing to push her into it would be very bad given the circumstances.....

  • Investor · Vermont and New York · Member since 2023 · 308 posts · 309 votes
    3y

    Your assumptions that you can just keep paying her loan after her death are naive.

    As another poster said, tread carefully here. 

    Not sure what your relationship is with the friend or what other conversations have been.  I am sure that person has other things on her mind.  Important things.

    If it were me in your shoes I would offer to help with any logistics with her house.  I would NOT suggest a course of action.  Let her discuss that with her family, accountants, lawyers, etc.  The house may end up encumbered if she goes into a care facility, etc.

    To reiterate - ask her how you can help. Listen.

    Best wishes for you and her

  • Member since 2022 · 5 posts · 2 votes
    3y

    Thanks, guys, appreciate the honest feedback that I’m probably overstepping here. I’ll probably delete the original but I do appreciate it.

  • Investor · Vermont and New York · Member since 2023 · 308 posts · 309 votes
    3y
    A death and real property involves probate, estates, etc.  Unless you have a clear, legal plan of action that is fully supported by the parties involved, you could be in for roller coaster.  

    I would not call it "overstepping", but you definitely want to avoid forcing a decision, pressuring, or prioritizing something that for her may not be important.  



  • Investor · Belton, MO · Member since 2017 · 55 posts · 41 votes
    3y

    I am sorry about your friend. Have you spoken to her about her belongings including the house? What does she want to happen? 
    If she is willing to sell you the house, what price does she want for it? You could easily secure an option to purchase at your agreed to price. 
    If I can be of assistance please reach out to me. I can try to help you step past some of the barriers that may be present so you can achieve your outcome. 

  • Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    No matter the situation, the deal has to make sense for you. Taking over the loan subject to is a better option, but the unpredictability of her death puts you in a bad spot. 

  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    3y
    Quote from @Tim J.:

    Your assumptions that you can just keep paying her loan after her death are naive.

    As another poster said, tread carefully here. 

    Not sure what your relationship is with the friend or what other conversations have been.  I am sure that person has other things on her mind.  Important things.

    If it were me in your shoes I would offer to help with any logistics with her house.  I would NOT suggest a course of action.  Let her discuss that with her family, accountants, lawyers, etc.  The house may end up encumbered if she goes into a care facility, etc.

    To reiterate - ask her how you can help. Listen.

    Best wishes for you and her


     >Your assumptions that you can just keep paying her loan after her death are naive.

    Why do you call this naive? It is my belief that a bank cannot call a loan due to death.  I have a loan of a deceased that my brother is supposed to be paying (he is not very capable, so I suspect that I have made more payments on this loan than he has but I digress).  It was initially with BOA who of course knew about the death (they knew prior to receiving a death certificate but still required me to provide a death certificate) and the loan has since been purchased by Mr Cooper who also is aware the initial borrower is deceased.  A loan being paid for after death is one of the safest loans against being called for title transfer (It is my belief that it cannot be called just because the title transferred and I had multiple conversations with BOA on this subject).

    BTW I like all other parts of your post and agree to ask her how to be of assistance.

  • Investor · Vermont and New York · Member since 2023 · 308 posts · 309 votes
    3y
    Quote from @Dan H.:
    Quote from @Tim J.:

    Your assumptions that you can just keep paying her loan after her death are naive.

    As another poster said, tread carefully here. 

    Not sure what your relationship is with the friend or what other conversations have been.  I am sure that person has other things on her mind.  Important things.

    If it were me in your shoes I would offer to help with any logistics with her house.  I would NOT suggest a course of action.  Let her discuss that with her family, accountants, lawyers, etc.  The house may end up encumbered if she goes into a care facility, etc.

    To reiterate - ask her how you can help. Listen.

    Best wishes for you and her


     >Your assumptions that you can just keep paying her loan after her death are naive.

    Why do you call this naive? It is my belief that a bank cannot call a loan due to death.  I have a loan of a deceased that my brother is supposed to be paying (he is not very capable, so I suspect that I have made more payments on this loan than he has but I digress).  It was initially with BOA who of course knew about the death (they knew prior to receiving a death certificate but still required me to provide a death certificate) and the loan has since been purchased by Mr Cooper who also is aware the initial borrower is deceased.  A loan being paid for after death is one of the safest loans against being called for title transfer (It is my belief that it cannot be called just because the title transferred and I had multiple conversations with BOA on this subject).

    BTW I like all other parts of your post and agree to ask her how to be of assistance.


    My understanding about the situation for a mortgage upon death is the following:

    - an co-signer may keep the loan/keep making payments
    - the executor can/should make payments from the estate (if possible)
    - an heir can keep/assume the loan (I am not sure if this is limited to family members or not - when attempting to research this was ambiguous, but at the very least, one needs to be an heir or executor)



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