Buying out sibling’s half while parent still owes mortgage and HELOC... How do I figure this out?

Legal Advice Forum
1

My dad is seriously ill, and I’m preparing for the future of the family home in Ohio. The will says I can buy out my sibling’s share, but I’m confused about the financials. The house is worth about $300k, but there’s $70k left on the mortgage and $30k on a HELOC. How do I calculate what I owe my sibling and manage the existing debts? Any advice would really help!

2

You’ll want to figure out the total debt first. Since the house is worth $300k, subtract the mortgage and HELOC to see what’s left for you and your sibling.

3

Hartley said:
You’ll want to figure out the total debt first. Since the house is worth $300k, subtract the mortgage and HELOC to see what’s left for you and your sibling.

Got it, so if I do the math, that’s $300k - $100k = $200k left to split?

4

Yeah, exactly! You’d split that $200k, so each of you gets $100k in equity. You’ll need to figure out how to pay your sibling that amount.

5

HenryAllan3 said:
Yeah, exactly! You’d split that $200k, so each of you gets $100k in equity. You’ll need to figure out how to pay your sibling that amount.

Thanks! I was worried about how to come up with that cash.

6

You could refinance the mortgage to get the cash for your sibling. Just make sure you qualify for the new loan first.

7

Mason said:
You could refinance the mortgage to get the cash for your sibling. Just make sure you qualify for the new loan first.

Refinancing sounds like a plan! I’ll look into that.

8

Also, keep in mind that if your dad has any life insurance, that could help cover the debts after he passes.

9

Denim said:
Also, keep in mind that if your dad has any life insurance, that could help cover the debts after he passes.

I’ll check on that too. Would be a relief if it helps with the mortgage!

10

Just a heads up, if you’re the executor of the will, you can take your time with the estate. That might help you plan things out better.

11

Harley said:
Just a heads up, if you’re the executor of the will, you can take your time with the estate. That might help you plan things out better.

Good to know! I’ll make sure to take it slow and figure it all out.