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Sloppy Sons & Sweet Mother!

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EC | 01 Nov 2012, 11:16 AM Agree 0
Please pardon my lack of expertise, this is why I am seeking yours! My Mother bought a property 1970's paid it off in 1990's. She allowed two sons to build house at rear. So two houses on property, not subdivided. Son's owned this property in their name, used mother's house for equity & this address as their primary residence. They bought houses in the same state & interstate. Some they rent out. Others they live in. My mother’s concern is that before they were married, she asked them to sell up, go separate ways. Now sons married she is worried she may owe money on house she owned outright. Wants to write her will. There was no contract written it was all verbal. Now she is putting money towards houses that she doesn't own to help her sons keep afloat. Acting as personal assistant & claiming nothing in her name for tax purposes, so losing money. One of the wives suggested to me "We can't knock down rebuild for your mother at the moment" As if to say, they are doing my mum a favour when she is co owner in some of these properties. My mother wants to seek a forensic accountant or lawyer to find out where she stands independently & move on. Her sons disputed this as well as their wives. She doesn't know what she wants as she doesn't know what she's entitled to & financially where she stands as sons won't get organised & provide her information. Please help to give us direction. We do not understand the correct terminology. I hope this makes sense!! I don't think it does but this has gone on for 10 years. I am now very concerned if she passes, we will be left owing money or in a major family dispute. I'm trying to save this from happening. Thanks so much in advance & appreciate any help!!
  • Lisa | 06 Nov 2012, 05:31 PM Agree 0
    Perhaps sub dividing the initial property so that she is not associated with the mortgages her sons have on that build they did in the rear of her property would be a great first step.
    If she is on the "loan" of the other properties then you would need to look into that as well as a separate issue/ phase two of the plan.
    I am not really clear on the whole picture, I hope this helps a little as a first step however.
  • Chris | 07 Nov 2012, 12:10 PM Agree 0
    I assume your mother ownes the front house & land. If the rear house is on the same land title then she also ownes the rear house. If other people are living init the they should have a writen lease or a lience.
    Loans or leases if two people are co-signituries then they are equally & severally liable for the full mortgage or rent. i.e. If the son stops paying then your mother is liable for the lot. The same applies to the other motgages she is party to. You wil need to refinance these properties & take your mother off the loan documents. Do it with different banks, so each propperty is isolated from your mother & each other. Banks have an all moneys clouse in their documents saying in case of any default (even by related parties) the can take money from any of your accounts. This includes credit cards. If you are making a family pledge to assist in geting a motgage for a relative you should limit the amount of time pledge is valid for eg. 5 years.
    Other methods of helping children. One child wants to buy a house, he puts in one third, the parents put in one thirde & the other child puts in one third. Each third should be about equal to each other & equal to the mortgage repayments. This way the house will be paid off very quickley & the its the next childs turn. If you have grand parents who are self funded rertirees (ie not on a pension) They buy an investment propertry, at todays price, rent it out either to the public or a grandchild at market rent. When the pass the child inherits the investment & the motgage. The parents can help subsidise the loan repayments. This is best for a low income, where it is difficuld for the child to a loage enough loan to buy a house or unit. Especially in Sydney.
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