Q: I have a friend who lives in a nursing home because she can’t walk.
A court assigned a management company to be her guardian and take care of her business.
Her home of 28 years was foreclosed back in early 2005. The management company was not her guardian at the time. But, her son wants to redeem this house and have her quit claim a deed to him. Is this legal?
Her son is going to pay the interestInterest is money charged for the use of borrowed funds. Usually expressed as an interest rate, it is the percentage of the total loan charged annually for the use of the funds. and other charges before the deadline. Can she quitclaim the deed to him even though she is in a nursing home? She is not mentally ill.
A: It’s quite unusual to have a court get involved in the affairs of a person unless that person needs the help of a court to assign a guardian. It is also strange that someone in her family was not designated guardian of her affairs. All these issues raise more questions than answers as to your friend’s predicament.
As far as the house is concerned, if there is significant value in the home, why is the home being foreclosed on? If she had a loanA Loan is an amount of money that is lent to a borrower, who agrees to repay it plus interest. and it had a low balance, selling the home is a better option than losing it to foreclosureForeclosure is the legal action taken to extinguish a home owner's right and interest in a property, so that the property can be sold in a foreclosure sale to satisfy a debt.. If she failed to pay real estateReal Estate is land and anything permanently attached to it, such as buildings and improvements. taxes and has no loan, again selling it would provide cash to pay the old taxes and give her money to pay her bills and expenses.
Unfortunately, your letter raises more question than can be answered in this column. Your friend can quitclaim the home to her son. However, if the transfer of titleTitle refers to the ownershipOwnership is the absolute right to use, enjoy, and dispose of property. You own it! of a particular piece of property. is done to avoid paying expenses to the nursing home, most states have laws that would require the value of the home that was transferred be given back to your friend to pay for her nursing home expenses.
It that your friend’s home must still have lots of equityYour share of ownership in a company. Stockholders are often referred to as equity investors, because they invest in the equity of a company. in it and your friend’s son feels that if he can get title to the home, he can sell it and make the money from the difference between what is owed and what its worth.
If he gets title, he then gets to keep the money. If he was interested in getting money for his mom, he could sell the home, pay off the debts and the rest of the money would go to your friend.
Clearly, there are other issues here that you have either not disclosed or are not aware of. Your friend can transfer title to her son. Whether she should do that is another question altogether.
Published: Apr 11, 2006