questions & answers

Question: Iam a 82 year old widow living on my husbands retirement and ss . My house is paid of , but I pay a small common fee . I recently took out a 130000 loan against my house to help my Granddaughter build a new house . She is now going through a divorce and is not paying me for the loan ( always two months late). The bank is threatening forclosure against my home I am living in. I was going to take a loan against my retirement to pay off the loan . The new house is in my Granddaughters name and her ex is living in it . Can I have my name put on the house and have her pay me rent without bad tax implications. I have three children that this house should be on the estate . The bank has been sending preforclosure papers against the house I live in . I am afraid I am going to lose everything . My Grandaughter refuses to sell her house snd pay me back . I dont want to hurt her . I was only trying to help . She has a new baby

Answer: You can file a claim against your granddaughter’s home only after successfully suing her for the $130,000.  However, to successfully sue, you will need evidence (written agreement, or admission by Granddaughter or witnesses, etc) to prove the $130,000 was a loan.  Otherwise the court will, by law, determine that the money was a gift and deny your claim, e.g. lien, against her home.  You can try to discuss a payment plan, or refinance of her home or other arrangements so that you don’t “lose everything”.  Obviously, your home will not be foreclosed upon, if you use your retirement funds, as you mentioned.