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"Reverse mortgage" for inlaws with possible tax issues
This is a little different question than usually posed on BP. I am a real estate investor with multiple properties. My inlaws are in financial distress, primarily due to many years of poor financial decisions. They currently own their home outright- the background of which was another bad financial decision. Their home is worth an estimated $50,000 and in good repair (mobile home with well and septic on their own lot). A mobile home would not qualify for a traditional reverse mortgage. I am exploring ways in which to assist them. The obvious answer is buy the home outright and have them pay rent. This uses my cash for other projects I have upcoming as well as I doubt the inlaws would accept this type of assistance. Another option is a "reverse mortgage" funded by me. They are currently on a payment plan for income taxes which is questionable if the payments will be made in full throughout the plan. The property taxes are paid and not in question. If I entered into a legally documented reverse mortgage, is the property subject to forfeiture based on income taxes? Any suggestions?