How do I help my brother? Martha's Vineyard, no mortgage, buy

Question

Hi Everyone,

A family member of ours has 2 houses on one lot in Martha's Vineyard.

She owns it 50/50 with with my uncle  "TIM"and there is no mortgage.

TIM wants to be bought out for 300K, but my aunt wants to stay 50/50 with US NOW.

What is the simplist way to finance and buy out Tim, but keep my aunt on the mortgage?

*****My aunt doesn't necessarily need to stay on the mortgage but wants to retain ownership 50/50 "somehow until she passes. Where we then have 100% control like she wanted.

Thoughts?

Tiffany Shan · Answer

@Samuel Carmichael did you ever find a solution? we might be able to help - would love to talk.

Ann Bellamy · Answer

Honestly, I can't even wrap my head around the family complications, especially with the potential for a life estate for the existing sister owner.  (The sister wants to maintain her right to live there, which could be recorded as a life estate)

Suggest you sit down with a MA real estate attorney.  There is a state statute on the books about splitting lots that have two houses, if they don't qualify for subdivision under normal town requirements.

Samuel Carmichael · Answer

@Brandon Battle They are brother and sister 50/50 ownership paid off.

Here is the full family situation. Brother and Sister team own the property. MY BROTHER is buying it. My brothers WIFE is the daughter of the female 50/50 owner.

My Brother........ wants to buy out just the uncle.

The Sister will let my brother take over 100% upon her death because my brother is married to her daughter. So really she just wants to maintain her right to live there, but with some skin in the game for decisions if things go sour between her and her daughter.  The "sister 50/50 owner" cant buy out her brother on her own because she shows no income. Thoughts? @Ann Bellamy not sure if you have any insight on this.

Andrew Postell · Answer

@Samuel Carmichael good luck with this.  This is often a super difficult process for family members to deal with.  I'll float 2 ideas here:

• Survey the 2 homes off separately.  That way the uncle can do whatever he wants with the other property and the aunt can do whatever she wants.  You'll pay a small fee to do this.
• Try to find a bank that will grant your aunt a cash out loan.  There will be challenges here, finding comparable value for a 2 house, 2 lot property...don't know if Martha's Vineyard has a lot of those but that is a common challenge.  And that's on top of her qualifying, etc.

With either of these plans everyone will need to agree to do this together.  Keep in mind that the uncle has the right to sell the property and he can forceably cause the property to be sold.  I'm not sure if he knows this but negotiating, sensitivity, persuasion, listening, etc. will all come into play.  Family deals are some of the hardest scenarios to have worked out.  Hope this helps in some way.