The house is unusual so it's hard to say with any certainty what the current value is, but I'll give some answers that should be in the ballpark
1) market value aprox $315k
2) mortgage balance is around $215k (10 yrs into a 30 yr mortgage)
3) living in the home are the 5 owners: me, husband, my father, my brother and sister in law. Plus ma and husbands 3 children
4) all of us have lived in home 10+ years
5) all contribute monthly toward equity/ general expenses and upkeep
Thank you for those answers, that does help somewhat. Our first priority is to make sure that we do NOT have to sell the house. It is not a very marketable property (9bdr, 6 bath, downstairs kitchen/living area) so its quite possible it could not be sold for $315k, especially with current mkt conditions. Does the 'pay at least $19K over a period of up to 5 years' part of your answer relate to the potential $17k per owner of equity or is the $19k based on something else? Hypothetically, if the total equity was only $50k instead of $100k would that change the amount they have to pay back through bankruptcy? Is there any other type of property ownership we can change to that would protect us from having to sell the house under any conditions? I'm also thinking about if Medicaid becomes involved with my brother-in-laws care as he is acutely ill, how will that affect his ownership stake?
The form or type of property ownership does not affect whether or not the property can be sold if a Bankruptcy is filed.
The $19K = $34K minus the available $15K homestead exemption. $34K is the equity that belongs to your brother-in-law and his wife - if the house's total equity is $85K after subtracting 5% cost to sell, then each one of the 5 co-owners has $17K equity. ($17K is $85K divided by 5.)
If the total equity were $50K instead of $85K (after subtracting 5% cost to sell), the $19K would then be only $5K ($20K minus $15K homestead exemption). In this case, $20K would be the equity that belongs to your brother-in-law and his wife.
Sorry, but I have no familiarity with Medicaid rules (called Elder Law).
I changed the answer in an attempt to make it clearer.
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