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?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
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 12 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.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.