ownership

[Ph128]

What is the name of your state? Indiana
Here's the situation.
A home was willed to two individual people and a life estate was given to a third person.
There is a mortgage on this home.
My question is who is responsible for what, such as the mortgage payments, property taxes, insurance, repairs, upkeep, etc.
And also what happens to who's ownership interest if the mortgage is called or not payed by whoever is responsible for paying it.

 

[seniorjudge]

What is the name of your state? Indiana
Here's the situation.
A home was willed to two individual people and a life estate was given to a third person.
There is a mortgage on this home.
My question is who is responsible for what, such as the mortgage payments, property taxes, insurance, repairs, upkeep, etc.
And also what happens to who's ownership interest if the mortgage is called or not payed by whoever is responsible for paying it.

Q: My question is who is responsible for what, such as the mortgage payments, property taxes, insurance, repairs, upkeep, etc.

A: The owners and the people who signed the mortgage.


Q: And also what happens to who's ownership interest if the mortgage is called or not payed by whoever is responsible for paying it.

A: If there is a foreclosure, then the party who buys it on the courthouse steps will be the 100% owner.

 

[Ph128]

Q: My question is who is responsible for what, such as the mortgage payments, property taxes, insurance, repairs, upkeep, etc.

A: The owners and the people who signed the mortgage.


Q: And also what happens to who's ownership interest if the mortgage is called or not payed by whoever is responsible for paying it.

A: If there is a foreclosure, then the party who buys it on the courthouse steps will be the 100% owner.

Perhaps you misunderstand the situation here.
The owner is dead and there are to be three benificiaries who will get a share of his home. Two will share ownership and one (third person) will get a life estate!
The mortgage already exists.

When I say "Life estate", the one who will get the life estate, gets to live in the home for her lifetime or until she doesn't want to live there anymore (she can't sell it). When she dies or doesn't want to live there anymore, the other two, who were given ownership, will get possession of the home as co-owners.

And of course, naturally, who ever buys a home, be it through forclosure or not, will own the home but assuming there will be excess funds from any forclosure sale as the mortgage is small, how will the proceeds be shared and by whom. What rights does the one who recieved the life estate have.

Who is responsible for the bills and upkeep on this home?
Does the one who recieved the life estate, get to live in the house for free?

This is a legal advice forum, correct?

 

[Litigation!]

My response:

Either someone or all of you step up to the plate and pay for that house, or all of you can kiss it good-bye. Then, the person who has a Life Estate can start paying higher rent someplace else.

IAAL

 

[Ph128]

My response:

Either someone or all of you step up to the plate and pay for that house, or all of you can kiss it good-bye. Then, the person who has a Life Estate can start paying higher rent someplace else.

IAAL

That response is kind of vague!
Would you care to elaborate please?

 

[Litigation!]

That response is kind of vague!
Would you care to elaborate please?

My response:

Vague? It was pretty clear, to me.

I'll tell you what . . . don't pay for the house. Let it go to foreclosure. Then, you won't have this problem.

IAAL

 

[Ph128]

My response:

Vague? It was pretty clear, to me.

I'll tell you what . . . don't pay for the house. Let it go to foreclosure. Then, you won't have this problem.

IAAL

Maybe there is someone else who can answer my questions who knows about these things!
Thank you kindly anyway!

 

[justalayman]

Maybe there is someone else who can answer my questions who knows about these things!
Thank you kindly anyway!

Actually what IAAL posted makes a lot of sense. If nobody starts paying for something, the bank will repo the home. If there is a legal requirement for anybody in particular in this situation to pay, I don;t know.

The only question I have concerning this is (to IAAL):

In many mortgages there is a due on sale clause. Would title transfer due to the death of the mortgagor invoke that same clause or is there some other clause normally included in a mortgage that would provide similar remedy for the mortgagee in the case of the death of the mortgagor.

 

[Ph128]

Actually what IAAL posted makes a lot of sense. If nobody starts paying for something, the bank will repo the home. If there is a legal requirement for anybody in particular in this situation to pay, I don;t know.

The only question I have concerning this is (to IAAL):

In many mortgages there is a due on sale clause. Would title transfer due to the death of the mortgagor invoke that same clause or is there some other clause normally included in a mortgage that would provide similar remedy for the mortgagee in the case of the death of the mortgagor.

Well now, that's a whole lot more than I had before!
My concern is, who is responsible for what, not just necessarily what happens if someone fails to perform! And if someone, of which no one on this forum seems to have a clue as to who that may be, did fail, whose rights and positions would be violated!
Apparently there are no lawyers or anyone knowledgeable on this forum who has seen my post because if there were, they would have given better explanations.
I'll wait, I guess!

 

[Litigation!]

Well now, that's a whole lot more than I had before!
My concern is, who is responsible for what, not just necessarily what happens if someone fails to perform! And if someone, of which no one on this forum seems to have a clue as to who that may be, did fail, whose rights and positions would be violated!
Apparently there are no lawyers or anyone knowledgeable on this forum who has seen my post because if there were, they would have given better explanations.
I'll wait, I guess!

My response:

You can wait "until the cows come home," but you received a legal, valid, answer. You just don't realize it.

You see, what you're waiting to read is for someone who will tell you that it's the Life Estate tenant who is responsible for all the payments because that's the person who's living there. That would be wrong.

You're all owners, making ALL of you equally, and jointly and separately, liable and responsible if you want to keep the property. The only difference is that the Life Estate tenant has more beneficial interest in the property than the rest of you. But, ownership is ownership, and the mortgagor doesn't care who's living on the property. All it knows is that there's a mortgage that's not getting paid.

Sounds like foreclosure is coming very soon for all of you. Pride goethe before a fall, and your pride is getting the better of all of you. You see, I can hear the arguments from all of you. You're all pointing the finger at each other - - and pretty soon, that property will be gone.


IAAL

 

[Ph128]

My response:

You can wait "until the cows come home," but you received a legal, valid, answer. You just don't realize it.

You see, what you're waiting to read is for someone who will tell you that it's the Life Estate tenant who is responsible for all the payments because that's the person who's living there. That would be wrong.

You're all owners, making ALL of you equally, and jointly and separately, liable and responsible if you want to keep the property. The only difference is that the Life Estate tenant has more beneficial interest in the property than the rest of you. But, ownership is ownership, and the mortgagor doesn't care who's living on the property. All it knows is that there's a mortgage that's not getting paid.

Sounds like foreclosure is coming very soon for all of you. Pride goethe before a fall, and your pride is getting the better of all of you. You see, I can hear the arguments from all of you. You're all pointing the finger at each other - - and pretty soon, that property will be gone.


IAAL

Sorry friend, but you don't totally see what you think you see!
This is only just beginning and I was wondering what it is that's coming.
The estate is not even open yet. Just know what the will says at this point. The body is barely cold at this point!
I thought maybe someone on here could give me a little heads up on what to expect but only to find you are itching to flame.
So really, may I apologize for blowing your ego, friend!
I was only trying to find out who was responsible for what!
I can understand the mortgage company wanting to call the note as they have no agreement with any of the heirs.
If that happens, how does that protect the life estate position from having the house sold out from under her?
If the house is sold to satisfy the mortgage if called, does she share in the proceeds equally?
Pride and all set aside, do you have an answer that pertains to Indiana law?

 

[nextwife]

Too bad that whomever they used as an attorney did not also suggest a provision in the will to pay off the nmortgage and so avoid the mortgage issue altogether, or to have a portion of life insurance devoted to same.

 

[Ph128]

Too bad that whomever they used as an attorney did not also suggest a provision in the will to pay off the nmortgage and so avoid the mortgage issue altogether, or to have a portion of life insurance devoted to same.

That may still happen as there was plenty of cash in the deceased persons bank account that will be split between the two who will be given ownership of the house. No body is going to lose the house.
My question still is, who is responsible, in this three way situation for what?
There doesn't appear to be anyone on this forum who can answer that.
All I've basically gotten so far here is "Shut up and quit whining" when asking legitimate questions!
I will eventually find the answers, so no big deal. I just thought this forum may be able to give me enough info to be able to ask good questions when the time comes to do so.
After all, isn't it suppose to be a forum for free legal advice?
So far, it's been a disappointment.

 

[nextwife]

Honest, if I was GIVEN a house in a will, even with deferred ability to use it, AND sufficient cash to cover the mortgage,why wouldn't I and my co-owner want to assume payment responsibilty, depending upon the equity involve, in order to secure my continued interest?

A free house is a free house, especially if making the payments with free money. Seems the intent of the deceased was for the party with the life estate to be able to continue to live there, but NOT enjoy benefits of ownership. IMHO.

 

[HomeGuru]

this writer has no clue******************************************