If my father is being moved to a nursing home and he owes $36K on his house but can’t afford to pay it,canour family be held liable?

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If my father is being moved to a nursing home and he owes $36K on his house but can’t afford to pay it,canour family be held liable?

My family and I are afraid that my father will be issued a 1090 and will have to pay income tax on the property if the bank takes control. His children are in no position to pay anything to help. Will my sister, whom is power of attorney, bare the burden of this debt? What should we do?

Asked on August 15, 2011 Arkansas

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If your father is the only one on the loan secured by his home, he will be the only one responsible for its obligation assuming there are no co-signers for it. If your sister has a power of attorney over your father who is being moved to a nursing home, and the power allows her to rent out his home, she should consider doing so in order to have a cash flow to pay down the mortgage.

Another option is that if the power of attorney gives your sister to sell the home, this should be considered as well since your father cannot afford to pay down the $36,000 still owing on the home and neither can other family members.

The last thing you want to see happen is to have the home lost in a foreclosure if there is equity in it.

You and your sister who hold the power of attorney signed by your father should consult with a real estate attorney about the situation you are in.

Good luck.


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