I currently hold a mortgage in my name for a property that my mother owns in Wisconsin. The mortgage was put in my name 10 years ago when she was going through a divorce, but she continued and continues to hold the title. The bank allowed this because the house was set up as a living trust. (I was 20 and stupid).
Over two years ago my mother let the insurance on the home lapse (without telling me of course) and there was an electrical fire. The house (rural small farm) was completely destroyed. There is less than 40k on the mortgage but probably somewhere around 15k in back-taxes. I contacted a lawyer to help, but the bank does not seem to want to foreclose or do any kind of deed-in-leu of foreclosure understandably. It has been almost 3 years since this happened, and I'm trying to figure out how to settle the matter. Can this property be in limbo for the rest of my life and destroy my credit? I'd be happy to settle and pay a portion of the mortgage just to get this matter resolved. My lawyer seems to think that doing nothing is the best course of action.
I would be sincerely thankful for any advice at all.
Over two years ago my mother let the insurance on the home lapse (without telling me of course) and there was an electrical fire. The house (rural small farm) was completely destroyed. There is less than 40k on the mortgage but probably somewhere around 15k in back-taxes. I contacted a lawyer to help, but the bank does not seem to want to foreclose or do any kind of deed-in-leu of foreclosure understandably. It has been almost 3 years since this happened, and I'm trying to figure out how to settle the matter. Can this property be in limbo for the rest of my life and destroy my credit? I'd be happy to settle and pay a portion of the mortgage just to get this matter resolved. My lawyer seems to think that doing nothing is the best course of action.
I would be sincerely thankful for any advice at all.