Siblings inherit 750K and mortgage free home, my grandfather built in 1964. 1260 sq ft., waterfront property with 44' dock, never repaired, updated or maintained, laced with dog urine, feces and rats. My sister and brother do not want the home. 2 recent appraisals of 320K - 325K, states 15K to 50K will be needed to bring the house to code and repairs.Sister from Florida (54), convinced mom she is going to be "Dying any day now". Found wire transfers and cancelled checks written fro mom for 100 K. Sister has stripped home of it's decor/antiques,computers. Sold the house without telling anyone in 2009, cash offer @ 325K. I caught it and had it rescinded by mom's attorney. Brother moved in 2009 to protect mom and assets, he still lives there. I would like to make them an offer, update property, rent home out and eventually retire in 5 yrs. Would you agree, my inheritance would be used to repair and update, what the estate should have been spending over the past 4 decades? I live in Jersey City and would take 1 month off to get things rolling, again. (monthly expenses are 1K/mo.) I am concerned that the real worth of the property is what a Chase lender would approve, not the 2 appraisers and inspector living on this small island. PLEASE HELP.
Country relating to Question: United States
Have two attorneys on vacation with sister and brother anxious for inheritance. Trying to read as much as I can on these issues.
Hello and thank you for the opportunity to assist you. There may be a slight delay between your follow ups and my replies as I am typing out my answer. Please remember that this is general information only, not legal advice, and no attorney-client relationship is formed.I am sorry for your situation. Can you please tell me:-your mother is still living, correct?-is she cognizant?-does she have a will?-what state is your mother/the property, in?
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Hello, I will be happy to assist you with your question. Please note that I cannot provide legal advice – I can only give you information concerning the legal issues raised by your question. I DO NOT receive credit for my work until you rate my answer as OK service” or higher. Please DO NOT RATE MY ANSWER as "Bad service" or "Poor service" (or the 2 stars on the left if you see stars), as such a rating leaves negative feedback for me personally. Instead, if you feel one of those ratings would be appropriate, please reply to me via the REPLY or CONTINUE CONVERSATION button with the issue you have, and I will be happy to continue further and do everything I can to provide you with the service you seek.Your Answer:Repairing the property will be from the money that you inherit along with your share of the home.If the estate were to fix up the home with estate funds, then the value might be increased. That would mean, however, that you would pay more to your siblings to purchase their interests. So it might not make much difference whether you buy their interest now and use your inherited money to fix the property or work with your siblings to have the estate fix the property and then pay them a (likely) larger portion of your inherited cash to purchase their interests.As for the value of the property - a lender will generally Loan about 80% of the appraised value (so the appraisals are actually relevant as far as giving you an idea of what a lender my give you on the property).As noted above, if you need clarification, please do let me know. And, again, I DO NOT receive credit for my work until you rate my answer as “OK service” or higher. Bonuses are always appreciated.If you later open a new question and would like my assistance, please begin the question with “To TMcJD….” This will ensure that only I answer the question. Thanks.
This helps so much. Am I allowed any more questions? If so,
Normally, "as is" language would mean that you take the property short of all improvements that are needed and that you would pay for the sewer hook up yourself.
That may be something you can work out with your siblings, but again, if the trust pays for that expense, you may end up giving your siblings a larger purchase price. Maybe not, but that's just up to what you can negotiate. There certainly is no prohibition for the trust paying that expense (so long as the trust authorizes the trustee to expend trust assets in maintenance and improvement of other property of the trust for the purpose of administering the trust, which almost all trusts do allow).
If you need additional clarification, please do let me know. And, again, I DO NOT receive credit for my work until you rate my answer as "OK service" or higher. Bonuses are always appreciated.If you later open a new question and would like my assistance, please begin the question with "To TMcJD...." This will ensure that only I answer the question. Thanks.
With only $30,000 in savings, it probably would be better to keep more cash (to have some liquidity) and use a loan against the Florida property to fix it for rental (assuming at that point that you would still have an acceptable amount of equity and low enough payment that rental of that property would make economic sense.
Plus, with the low interest and cash-flowing rental you already have, paying off the loan doesn't help much.
If the Chase mortgage is satisfied, there will be a positive cash flow of $1950/month, as of August 1st.
Could you clarify how much would be"an acceptable amount of equity" in the answer above?
Sorry, there's no way I can verify what would be a good amount. It's very fact specific and a judgment call you would have to make based on what you know about your situation.
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