Family, home ownership, money dilemma.?

[urbanavatar]

My granddad bought our family home in West LA in the 50's, and since then its value has compounded considerably. About 20 years ago, the siblings agreed my dad would take over ownership, and he borrowed against the house to add on, and eventually took out a second. Mom and dad have sacrificed to maintain house, and pay off this loan in good time -even refusing to let his own kids borrow on the house for college! Today, there's only one morgage left to be payed off with about 2 years to go. Mom and dad are in their mid-fifties, and hoping to rest easy and maybe even retire before 70 -having paid off the morgage, and only worrying about taxes and such. All of a sudden, my uncle is asking to take out a second on the house so he can buy his own house. Uncle is in his late forties, but wont be retiring anytime soon. Dad is fit to be tied. How can he say no without causing a family feud? Could this situation work to the family's benefit?

[tersey562]

If the house is deeded in your parents name your uncle couldn't take out a loan legally using that house as collateral anyway as a mortgage company wouldn't be foolish enough to use collateral to which he would have no legal right and doesn't own. Now if your parents wished to have your father's brother added to the deed as a 1/3 share owner he would then be able to use that collateral to obtain money, but that also gives him a lot of other legal rights to the house and property which your parents may not want to give to him. I'd seek the advice of an attorney in your area who is knowledgeable in real estate law and after a consultation with the attorney (and your uncle could attend that) make the decision. I don't see how this situation could work to the family's benefit at all, it is only going to cause problems, now, if your parents don't do it and possibly in the future if your parents do it.Good luck and God Bless.

[I39]

You said that your dad "took over ownership". However, I take it that your uncle's name is also on the deed or he wouldn't even be pursuing the mortgage. In that case your dad will likely have to let him take out the loan. Altho he may have to sign the application also for it to be possible. I would say that your dad should go along with it. It is the price your folks may have to pay for faulty estate planning 20 years ago. They should have went through a lawyer and this would never have happened.

[kim_behr]

If your dad has ownership of the house then no way would I let the uncle take out a second on the house. After all where was your uncle when your parents made improvements to the house? It was your parents who made the house what it is worth today they are the ones who have been paying on it for the last 20 years I think your uncle has a lot of nerve to put the responsibility of this house on your parents for the last 20 years and now that it's almost payed off he wants to step in now and lay claim like he has the right to take a 2nd on it ,he doesn't even have the right to ask. If it causes a family feud than so be it what gives him the right to take away your parents security that they have worked so hard for. He is a very selfish person and shame on him.