My mom took out a home equity loan (180,000) to help my brother start a buisness. Both of their names are on the loan. What can I do?

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The loan was to be paid off in 3yrs...it is now 15yrs later. All that was paid was the interest and now the payments are finally going to the principal of the loan. It was agreed that he would pay the taxes as well as the loan payment the life of the loan. He has recently stopped paying the taxes and is now paying the loan payments late. My mom is 80yrs old and lives off of social security. This home that she worked her whole life to pay off and use for retirement is now her coffin. It is falling apart around her and there is no way she can afford to pay the loan if he completely stops payment. I don't know how to help her. He is stealing her golden years from her and I don't know what I can do? Please help!

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My mother did the exact same thing for my older brother. He spent all the money and paid back nothing.

Mother and dad lost their "dream house"--the rest of us kids didn't even know this had gone on, folks were so embarrassed.

Sadly, even with legal help, the folks were competent to make decisions and this one cost them their home.

Brother died 5-6 years ago, homeless, sick and owing everyone money. Horrible man.
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I wouldn't sell a home for less than market value... the reason being, if a parent needs to go into a nursing home and she/he needs help with paying the nursing home, Medicaid can step in to make all the payments.

But... if Medicaid sees that within the past 5 years a parent had sold a house below market value, that could cause a major speed bump in getting that parent the help he/she needs from Medicaid. Medicaid could subtracting the Sold contract price from the true market value, and that amount would be deleted from funds that could be used by the parent for care.

If selling a house to a family member, best to have a professional licensed Appraiser come up with a value on the house.
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Your mother made a huge financial mistake. Any good financial advisors will say to NEVER EVER borrow or cosign any kind of loan/debt for your kids or anyone.

Since your brother stopped paying the taxes, the County can sell the house and evict your mother. It is very important that taxes be paid. If your brother stops paying the loan, then the bank will go after your mom. If she can't pay, then the bank will foreclose on her house, sell it and take back their money. If there is any money left from the sale, it'll go to your mom.

There are options before it gets to that point but your mom needs to act quick since taxes are over due. She needs to find a good real estate agent or real estate attorney to help you.

First and foremost, she needs to pay her taxes.

Then she can appeal to the lender and ask if they can extend the term of the loan, or convert it to a different loan like a reverse mortgage so that it will not be due until your mom dies. This is up to the lender if they want to do it.

If the house has equity meaning it is worth more than the $180,000 loan, then your mom can sell it to pay the loan and buy/rent a smaller place.

Or if YOU want to keep the house and are financially able, then your mom can sell it to you for cheap, just enough to pay off her loan and taxes. You will then be the owner of the house. When your mom dies, you can fix it up and sell it hopefully for more money than you pay for.

There are more options that a good real estate agent or attorney can suggest.

Remember. DO NOT cosign any loan, even for your mom.
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I think you and your mom need to consult a lawyer. Does your brother have money or any sort of assets to repay the loan at all?
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