How can I buy my sister's half of inherited house when she has a previous foreclosure debt to settle?


Question:
My parents passed away and left their house to my sister and I. I wanted to buy her half but the sale is bogged down at the title company because she filed bankruptcy 10 years ago and her home was foreclosed on. She owes a certain amount plus interest. Does she have to pay this? Does this mean there is a lien on our house?

Answer:
Have her sign off on her interest in the house . Quick claim deed .
If she needs the proceeds from the home and does not want her creditors to get at this money then open an account and deposit the funds do it in a businesses name with her as an officer of the company . This way none of her bad debt can attach to the account .
She then has free unrestricted access to the funds and her creditors are kept at bay for the time being .
It would be a shame to lose what your folks spent a lifetime achieving to her bad debts . .
Well, this will depend on the probate law of whichever state you live in. The following will be factors:

Has the property been transferred to your names already? If so, she most likely has to pay up unless she wants to wait it out. (Liens do expire after time, ask the attorney how long before it does).

If the property is still in your parents names, the executor may be able to sell you the house w/o transferring it into your sister's name (this will REALLY depend on where you live).

Normally, when liens are filed, they attach to everything you own, and she'll have to pay it off to give you clear title, b/c yes, most likely, their is a lien on the house.
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