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Updated over 4 years ago on . Most recent reply presented by

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18
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8
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Greg Clatterbuck
  • Rental Property Investor
8
Votes |
18
Posts

"Reverse mortgage" for inlaws with possible tax issues

Greg Clatterbuck
  • Rental Property Investor
Posted

This is a little different question than usually posed on BP.  I am a real estate investor with multiple properties.  My inlaws are in financial distress, primarily due to many years of poor financial decisions.  They currently own their home outright- the background of which was another bad financial decision.  Their home is worth an estimated $50,000 and in good repair (mobile home with well and septic on their own lot).  A mobile home would not qualify for a traditional reverse mortgage.  I am exploring ways in which to assist them.  The obvious answer is buy the home outright and have them pay rent.  This uses my cash for other projects I have upcoming as well as I doubt the inlaws would accept this type of assistance.  Another option is a "reverse mortgage" funded by me.  They are currently on a payment plan for income taxes which is questionable if the payments will be made in full throughout the plan.  The property taxes are paid and not in question.  If I entered into a legally documented reverse mortgage, is the property subject to forfeiture based on income taxes?  Any suggestions?

  • Greg Clatterbuck
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