Home equity loan for a business quandary

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ColoradoRob
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Home equity loan for a business quandary

Post by ColoradoRob » Tue Jul 10, 2018 6:21 pm

A decade ago, my brother bought a business using a home-equity loan with collateral from my parents’ home. Even though their house was long ago paid off, they went along with it and took out the loan for $110k. My brother promised to quickly pay off the loan or to convert it into a business loan in his own name, using his own home as collateral for the new loan. He did not keep his promise to convert the loan; however, he has made every payment on that loan. Over the years, my father died and now my mother wants rid of the mortgage loan on her home. She is worried that if his business fails, she will lose her home of 49 years to foreclosure. She has asked and pressured him repeatedly, but my brother will not pay off or convert the loan. Stunningly, in the decade of payments, he has made only minimum payments and the pay off is roughly $93k. It is damaging the relationship between my mother (in her mid 70s) and my brother (in his early 50s) and I don’t know how to resolve this problem. It is not my problem to solve, but I wish I could figure out what to do. Does anyone have any ideas or suggestions? Any advice or suggestions would be kindly appreciated. Thank you for reading.

DesertDiva
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Re: Home equity loan for a business quandary

Post by DesertDiva » Tue Jul 10, 2018 6:52 pm

Sorry to read of your troubles. While you acknowledge that it's not your problem to solve, it affects people very close to you.

Although I don't have any words of wisdom, perhaps others do. One suggestion is to submit this to The Moneyist on marketwatch.com: https://www.marketwatch.com/the-moneyist

delamer
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Re: Home equity loan for a business quandary

Post by delamer » Tue Jul 10, 2018 7:42 pm

I assume there is no written agreement that could be used to force your brother to take out a business loan or use some other method to pay off the HELOC?

ColoradoRob
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Re: Home equity loan for a business quandary

Post by ColoradoRob » Tue Jul 10, 2018 7:55 pm

delamer wrote:
Tue Jul 10, 2018 7:42 pm
I assume there is no written agreement that could be used to force your brother to take out a business loan or use some other method to pay off the HELOC?
That is unfortunately correct - there is no written agreement between my mother & brother.

delamer
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Re: Home equity loan for a business quandary

Post by delamer » Tue Jul 10, 2018 7:59 pm

ColoradoRob wrote:
Tue Jul 10, 2018 7:55 pm
delamer wrote:
Tue Jul 10, 2018 7:42 pm
I assume there is no written agreement that could be used to force your brother to take out a business loan or use some other method to pay off the HELOC?
That is unfortunately correct - there is no written agreement between my mother & brother.
And I also assume that your mother does not have enough funds to payoff the HELOC herself?

jminv
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Re: Home equity loan for a business quandary

Post by jminv » Tue Jul 10, 2018 7:59 pm

did your parents borrow and make payment to the prior owner directly or through the brother’s account. Perhaps your mother can argue somehow that she owns the business. That might get him to payoff the loan.

ColoradoRob
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Re: Home equity loan for a business quandary

Post by ColoradoRob » Wed Jul 11, 2018 7:25 am

jminv wrote:
Tue Jul 10, 2018 7:59 pm
did your parents borrow and make payment to the prior owner directly or through the brother’s account. Perhaps your mother can argue somehow that she owns the business. That might get him to payoff the loan.
No they did not. That is a good thought, but my parents essentially gave my brother free access to their home equity. He used the proceeds from that loan to buy the business in his name only. Thank you--your suggestion is something I had never thought of. It would be interesting if she could possibly argue that issue-- possibly akin to common law marriage/possession.

ColoradoRob
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Re: Home equity loan for a business quandary

Post by ColoradoRob » Wed Jul 11, 2018 7:30 am

delamer wrote:
Tue Jul 10, 2018 7:59 pm
ColoradoRob wrote:
Tue Jul 10, 2018 7:55 pm
delamer wrote:
Tue Jul 10, 2018 7:42 pm
I assume there is no written agreement that could be used to force your brother to take out a business loan or use some other method to pay off the HELOC?
That is unfortunately correct - there is no written agreement between my mother & brother.
And I also assume that your mother does not have enough funds to payoff the HELOC herself?
Yes that is very correct. She has little-to-no net worth except for her home equity, which is tied up on my brother's business. Her only income is social security and that barely covers her monthly expenses while my brother is doing well. Paying it off herself is impossible.

Silk McCue
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Re: Home equity loan for a business quandary

Post by Silk McCue » Wed Jul 11, 2018 7:32 am

Your brother owes your mom a straight up answer on why he is unwilling (or unable) to either pay off this loan or refinance it apart from his mom's residence. As a grown man in his 50's he has an obligation to explain himself. Not being able to refinance the debt at the same favorable rate is not an acceptable reason to not do so.

Cheers

Luke Duke
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Re: Home equity loan for a business quandary

Post by Luke Duke » Wed Jul 11, 2018 8:45 am

How much is the house worth?

jminv
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Re: Home equity loan for a business quandary

Post by jminv » Wed Jul 11, 2018 9:14 am

ColoradoRob wrote:
Wed Jul 11, 2018 7:25 am
jminv wrote:
Tue Jul 10, 2018 7:59 pm
did your parents borrow and make payment to the prior owner directly or through the brother’s account. Perhaps your mother can argue somehow that she owns the business. That might get him to payoff the loan.
No they did not. That is a good thought, but my parents essentially gave my brother free access to their home equity. He used the proceeds from that loan to buy the business in his name only. Thank you--your suggestion is something I had never thought of. It would be interesting if she could possibly argue that issue-- possibly akin to common law marriage/possession.
Maybe you can have her get some advice from a free legal aid society or at least a free consultation from a lawyer. If there’s any grounds to the claim they might be able to do a demand letter and also say non payment on the loan (since could do this out of spite) could be action for your mother to take over the business. Although that’s probably not a very credible threat especially if it’s a one man asset light show? If it is profitable then he might rather payup. This isn’t legal advice and I’m not a lawyer, she needs to engage one. There’s also an elder abuse angle or maybe he signed all the loan documents himself somehow.

I think it would help to understand why your brother isn’t paying off the loan and/or converting it to a business loan. Is his business actually profitable/is he living large? Maybe he can’t really make principal payments and can’t arrange another loan. The value of the business might really be worth 0 or less than the loan amount. Understanding your brothers situation might be helpful in deciding what to do.

smitcat
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Re: Home equity loan for a business quandary

Post by smitcat » Wed Jul 11, 2018 9:37 am

ColoradoRob wrote:
Tue Jul 10, 2018 6:21 pm
A decade ago, my brother bought a business using a home-equity loan with collateral from my parents’ home. Even though their house was long ago paid off, they went along with it and took out the loan for $110k. My brother promised to quickly pay off the loan or to convert it into a business loan in his own name, using his own home as collateral for the new loan. He did not keep his promise to convert the loan; however, he has made every payment on that loan. Over the years, my father died and now my mother wants rid of the mortgage loan on her home. She is worried that if his business fails, she will lose her home of 49 years to foreclosure. She has asked and pressured him repeatedly, but my brother will not pay off or convert the loan. Stunningly, in the decade of payments, he has made only minimum payments and the pay off is roughly $93k. It is damaging the relationship between my mother (in her mid 70s) and my brother (in his early 50s) and I don’t know how to resolve this problem. It is not my problem to solve, but I wish I could figure out what to do. Does anyone have any ideas or suggestions? Any advice or suggestions would be kindly appreciated. Thank you for reading.
A home equity loan was taken for $110K against your parents home. Those funds (check) were used to purchase a business that was apparently a legal entity and the transactionn was completed and filed.
I suggest there is more than enough paper trail to enforce the payments if it come to that.
Perhaps reminding the business owner and debtor of these obligations would move him to do the right thing.
Good luck - your Mom deserves to have peace with this issue.

ColoradoRob
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Re: Home equity loan for a business quandary

Post by ColoradoRob » Wed Jul 11, 2018 10:44 am

jminv wrote:
Wed Jul 11, 2018 9:14 am
ColoradoRob wrote:
Wed Jul 11, 2018 7:25 am
jminv wrote:
Tue Jul 10, 2018 7:59 pm
did your parents borrow and make payment to the prior owner directly or through the brother’s account. Perhaps your mother can argue somehow that she owns the business. That might get him to payoff the loan.
No they did not. That is a good thought, but my parents essentially gave my brother free access to their home equity. He used the proceeds from that loan to buy the business in his name only. Thank you--your suggestion is something I had never thought of. It would be interesting if she could possibly argue that issue-- possibly akin to common law marriage/possession.
Maybe you can have her get some advice from a free legal aid society or at least a free consultation from a lawyer. If there’s any grounds to the claim they might be able to do a demand letter and also say non payment on the loan (since could do this out of spite) could be action for your mother to take over the business. Although that’s probably not a very credible threat especially if it’s a one man asset light show? If it is profitable then he might rather payup. This isn’t legal advice and I’m not a lawyer, she needs to engage one. There’s also an elder abuse angle or maybe he signed all the loan documents himself somehow.

I think it would help to understand why your brother isn’t paying off the loan and/or converting it to a business loan. Is his business actually profitable/is he living large? Maybe he can’t really make principal payments and can’t arrange another loan. The value of the business might really be worth 0 or less than the loan amount. Understanding your brothers situation might be helpful in deciding what to do.
Thank you--I had not thought of free legal advice. My brother is not abusing her; he did not forge any documents and he has supposedly made every payment on the loan. As to why he is not keeping his promise to convert the loan--I don't know. I can't help with info on my brother's business situation. He does not discuss those details with me or my mother. I don't know how profitable his business is, but he is more-than-getting-by in life. He is not living obviously large or extravagantly but somehow affords a lawyer, accountant, tax pro, a finance guy and regular vacations. He is not a bad guy-just a tad selfish and stubborn.

The advice to contact free legal help is really good and I appreciate it. Thanks!

ColoradoRob
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Re: Home equity loan for a business quandary

Post by ColoradoRob » Wed Jul 11, 2018 10:50 am

Luke Duke wrote:
Wed Jul 11, 2018 8:45 am
How much is the house worth?
My guess is that her home is valued at between $125k-130k, so it is leveraged to the hilt.

straws46
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Re: Home equity loan for a business quandary

Post by straws46 » Wed Jul 11, 2018 10:58 am

Have you seen the loan documents? Did your parents sign the promissory note and hand the proceeds over to your brother? Or was your brother the signer on the note and your parents granted a lien on their house to secure his obligation on the note (as in the nature of a non-recourse guarantor)? Does the loan have a maturity date? You need to understand the exact nature of the documents to determine how to enforce any remedies your mother may have.

Silk McCue
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Re: Home equity loan for a business quandary

Post by Silk McCue » Wed Jul 11, 2018 10:58 am

This thought just crossed my mind and must be addressed regardless of all other considerations. Should your brother pass away prior to the loan being fully repaid he must make iron-clad provision for the debt to be paid off in full from his estate. If it cannot be paid with liquid assets he must protect his mother with a term life insurance for which she will be the sole beneficiary. No one expects to die young but accidents and illness happen. Your mom cannot go begging because he has failed to insure the repayment of this loan that she will be responsible for.

Cheers

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djpeteski
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Re: Home equity loan for a business quandary

Post by djpeteski » Wed Jul 11, 2018 11:11 am

Are you capable of taking on this loan? Is the house worth about 200k or more?

If yes to both of those this is what I would do:

1) You pay off the loan, and it could be from a loan in your name.
2) Mom wills the house to you, this would compensate for you the paying off of the loan.

Now you could propose all of this to your brother and he might do the right thing. If not you give your mom peace of mind, you act as peacemaker in their relationship, and you make your mom proud. It might cost you a little bit, but in the end it will probably be worth it.

It is not surprising that there has been little headway on the principle, typically HELOC are almost interest only loans. T

NextMil
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Re: Home equity loan for a business quandary

Post by NextMil » Wed Jul 11, 2018 11:20 am

I wouldn't get involved financially in anyway other than to start saving for the day that you may need to help Mom with her expenses, and start seriously leaning on your brother like seriously pestering him to do the right thing.

I suspect with the limited amount of info, he does not have the cash to convert or pay it off. I would at least push him to start making principle reductions on the loan, and monitor the situation like crazy. What a mess. I am sorry you are stuck in the middle of such a terrible situation.

ColoradoRob
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Re: Home equity loan for a business quandary

Post by ColoradoRob » Wed Jul 11, 2018 11:24 am

Silk McCue wrote:
Wed Jul 11, 2018 10:58 am
This thought just crossed my mind and must be addressed regardless of all other considerations. Should your brother pass away prior to the loan being fully repaid he must make iron-clad provision for the debt to be paid off in full from his estate. If it cannot be paid with liquid assets he must protect his mother with a term life insurance for which she will be the sole beneficiary. No one expects to die young but accidents and illness happen. Your mom cannot go begging because he has failed to insure the repayment of this loan that she will be responsible for.

Cheers
Wow- I never thought of that. That is a huge risk that I had not thought of. My brother claims to not have any life insurance and even if he did - his wife & kids (not my mother) would be the beneficiary, so that is an excellent point that you make. At a minimum, she should compel him to get some term life insurance and name her as the sole beneficiary. Thanks for the advice!

ColoradoRob
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Re: Home equity loan for a business quandary

Post by ColoradoRob » Wed Jul 11, 2018 11:33 am

straws46 wrote:
Wed Jul 11, 2018 10:58 am
Have you seen the loan documents? Did your parents sign the promissory note and hand the proceeds over to your brother? Or was your brother the signer on the note and your parents granted a lien on their house to secure his obligation on the note (as in the nature of a non-recourse guarantor)? Does the loan have a maturity date? You need to understand the exact nature of the documents to determine how to enforce any remedies your mother may have.
No I haven't seen any of the documents; I've been kept out of the details by both parties and largely out of my circumstances (they're both physically distant, living on the east coast). Maybe my ignorance is bliss in this situation. Also I don't want to insert myself, make demands and make the situation worse but I want to help resolve this problem between the two of them. The loan was probably a 30year fixed rate taken out and a very low interest rate (taken out in 2008 time frame), so maturity at 2038 time frame-maybe?

ColoradoRob
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Re: Home equity loan for a business quandary

Post by ColoradoRob » Wed Jul 11, 2018 11:43 am

djpeteski wrote:
Wed Jul 11, 2018 11:11 am
Are you capable of taking on this loan? Is the house worth about 200k or more?

If yes to both of those this is what I would do:

1) You pay off the loan, and it could be from a loan in your name.
2) Mom wills the house to you, this would compensate for you the paying off of the loan.

Now you could propose all of this to your brother and he might do the right thing. If not you give your mom peace of mind, you act as peacemaker in their relationship, and you make your mom proud. It might cost you a little bit, but in the end it will probably be worth it.

It is not surprising that there has been little headway on the principle, typically HELOC are almost interest only loans. T
That is a solid idea and I could do it. The kicker would be that my brother would still want 50% of our mother's (very meager) estate upon her death to include the value of the home. And yes- I was shocked to learn of the still large balance due on the loan. If I pursue your suggestion, I'll be sure to get some lawyers draw up an iron-clad agreement by all involved before doing anything. You gave a really decent idea. Thank you very much for the advice.

ColoradoRob
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Re: Home equity loan for a business quandary

Post by ColoradoRob » Wed Jul 11, 2018 11:48 am

NextMil wrote:
Wed Jul 11, 2018 11:20 am
I wouldn't get involved financially in anyway other than to start saving for the day that you may need to help Mom with her expenses, and start seriously leaning on your brother like seriously pestering him to do the right thing.

I suspect with the limited amount of info, he does not have the cash to convert or pay it off. I would at least push him to start making principle reductions on the loan, and monitor the situation like crazy. What a mess. I am sorry you are stuck in the middle of such a terrible situation.
Thank you for the sympathy and advice. It would be dangerous to get directly involved and could back-fire big time. Since I am the sole younger brother, my older brother does not and has never responded to any sort of protest, pressure, appeals or anything from me. I will have to try, though, to get him to do the right thing. It is a mess, but I guess we're all fortunate to be quibbling over money and not more important things.

delamer
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Re: Home equity loan for a business quandary

Post by delamer » Wed Jul 11, 2018 1:15 pm

ColoradoRob wrote:
Wed Jul 11, 2018 11:43 am
djpeteski wrote:
Wed Jul 11, 2018 11:11 am
Are you capable of taking on this loan? Is the house worth about 200k or more?

If yes to both of those this is what I would do:

1) You pay off the loan, and it could be from a loan in your name.
2) Mom wills the house to you, this would compensate for you the paying off of the loan.

Now you could propose all of this to your brother and he might do the right thing. If not you give your mom peace of mind, you act as peacemaker in their relationship, and you make your mom proud. It might cost you a little bit, but in the end it will probably be worth it.

It is not surprising that there has been little headway on the principle, typically HELOC are almost interest only loans. T
That is a solid idea and I could do it. The kicker would be that my brother would still want 50% of our mother's (very meager) estate upon her death to include the value of the home. And yes- I was shocked to learn of the still large balance due on the loan. If I pursue your suggestion, I'll be sure to get some lawyers draw up an iron-clad agreement by all involved before doing anything. You gave a really decent idea. Thank you very much for the advice.

I agree that this is an excellent option, given that you said there are no formal loan documents requiring your brother to make payments.

There should be no queston about your brother having a claim on the house with a properly executed will (for your mother) that gives you the house and excludes him.

That said, it may have a negative impact on any relationship you have with your brother and maybe on his with your mother. He will be relieved of making the payment but he gets no inheritance. Practically speaking that is a great tradeoff for him, but who knows if he’ll see it that way?

NotWhoYouThink
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Re: Home equity loan for a business quandary

Post by NotWhoYouThink » Wed Jul 11, 2018 1:23 pm

ColoradoRob wrote:
Wed Jul 11, 2018 11:43 am
djpeteski wrote:
Wed Jul 11, 2018 11:11 am
Are you capable of taking on this loan? Is the house worth about 200k or more?

If yes to both of those this is what I would do:

1) You pay off the loan, and it could be from a loan in your name.
2) Mom wills the house to you, this would compensate for you the paying off of the loan.

Now you could propose all of this to your brother and he might do the right thing. If not you give your mom peace of mind, you act as peacemaker in their relationship, and you make your mom proud. It might cost you a little bit, but in the end it will probably be worth it.

It is not surprising that there has been little headway on the principle, typically HELOC are almost interest only loans. T
That is a solid idea and I could do it. The kicker would be that my brother would still want 50% of our mother's (very meager) estate upon her death to include the value of the home. And yes- I was shocked to learn of the still large balance due on the loan. If I pursue your suggestion, I'll be sure to get some lawyers draw up an iron-clad agreement by all involved before doing anything. You gave a really decent idea. Thank you very much for the advice.
I can't discourage this strongly enough.

Your brother could then talk your mother into taking out another loan.
Your mother could change the will.
You mother could need to sell the house to pay for long term care.
About 100 other things that could go wrong.

Things are not good now. Try not to make them worse. It hurts to watch people do wrong or foolish thing, but when you interfere you can make a bad situation worse. You can't make people do what you want them to do, your job now is to accept that fact and try to enjoy relationships with your family, which is just as flawed as everyone else's family.

ColoradoRob
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Re: Home equity loan for a business quandary

Post by ColoradoRob » Wed Jul 11, 2018 2:42 pm

NotWhoYouThink wrote:
Wed Jul 11, 2018 1:23 pm
ColoradoRob wrote:
Wed Jul 11, 2018 11:43 am
djpeteski wrote:
Wed Jul 11, 2018 11:11 am
Are you capable of taking on this loan? Is the house worth about 200k or more?

If yes to both of those this is what I would do:

1) You pay off the loan, and it could be from a loan in your name.
2) Mom wills the house to you, this would compensate for you the paying off of the loan.

Now you could propose all of this to your brother and he might do the right thing. If not you give your mom peace of mind, you act as peacemaker in their relationship, and you make your mom proud. It might cost you a little bit, but in the end it will probably be worth it.

It is not surprising that there has been little headway on the principle, typically HELOC are almost interest only loans. T
That is a solid idea and I could do it. The kicker would be that my brother would still want 50% of our mother's (very meager) estate upon her death to include the value of the home. And yes- I was shocked to learn of the still large balance due on the loan. If I pursue your suggestion, I'll be sure to get some lawyers draw up an iron-clad agreement by all involved before doing anything. You gave a really decent idea. Thank you very much for the advice.
I can't discourage this strongly enough.

Your brother could then talk your mother into taking out another loan.
Your mother could change the will.
You mother could need to sell the house to pay for long term care.
About 100 other things that could go wrong.

Things are not good now. Try not to make them worse. It hurts to watch people do wrong or foolish thing, but when you interfere you can make a bad situation worse. You can't make people do what you want them to do, your job now is to accept that fact and try to enjoy relationships with your family, which is just as flawed as everyone else's family.
Yes, you're probably right. There is too much risk and too many unknowables. Thank you.

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Sandtrap
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Re: Home equity loan for a business quandary

Post by Sandtrap » Wed Jul 11, 2018 2:46 pm

DesertDiva wrote:
Tue Jul 10, 2018 6:52 pm
Sorry to read of your troubles. While you acknowledge that it's not your problem to solve, it affects people very close to you.

Although I don't have any words of wisdom, perhaps others do. One suggestion is to submit this to The Moneyist on marketwatch.com: https://www.marketwatch.com/the-moneyist
Excellent and appropriate site for OP.
Thanks for posting.
j :D

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Sandtrap
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Re: Home equity loan for a business quandary

Post by Sandtrap » Wed Jul 11, 2018 2:55 pm

ColoradoRob wrote:
Wed Jul 11, 2018 11:48 am
NextMil wrote:
Wed Jul 11, 2018 11:20 am
I wouldn't get involved financially in anyway other than to start saving for the day that you may need to help Mom with her expenses, and start seriously leaning on your brother like seriously pestering him to do the right thing.

I suspect with the limited amount of info, he does not have the cash to convert or pay it off. I would at least push him to start making principle reductions on the loan, and monitor the situation like crazy. What a mess. I am sorry you are stuck in the middle of such a terrible situation.
Thank you for the sympathy and advice. It would be dangerous to get directly involved and could back-fire big time. Since I am the sole younger brother, my older brother does not and has never responded to any sort of protest, pressure, appeals or anything from me. I will have to try, though, to get him to do the right thing. It is a mess, but I guess we're all fortunate to be quibbling over money and not more important things.
Actually, money "reveals" the core truth of relationship dynamics.
It brings out both, "the worse", and the "best" in people and relationships between people.
As it stands:
1. You have no actionable tangible leverage. (only opinion)
2. Your brother has everything to gain and nothing to lose by leaving things as is.
3. At it's core, your brother cares not for the consequences of his actions when it comes to your mom's financial security.
4. Your mom and brother have a codependent relationship. She is an "enabler". If she "sides" with you or demands accountability, she is a "bad mom".
5. It is best "for you" to remain an impartial advisor to your mother. Professionally distanced from your brother (it is what it is). And, vigilant should something happen and then you have an opportunity to take some measure of control over whatever situation may arise on your mom's behalf.

Good luck.
j :D

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HomerJ
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Re: Home equity loan for a business quandary

Post by HomerJ » Wed Jul 11, 2018 3:02 pm

I definitely wouldn't buy the house now (why let the brother off the hook for the on-going payments?)

But be prepared to pay off the loan in the future, by PURCHASING THE HOUSE.

If you own it, then you don't have to worry about your mother changing her will, or getting another loan.

Let her live there rent free, and when she dies, you don't inherit the house; you already own it, so you just sell it at that point, and get all (or at least most) of your money back.

Edit: One question. Will the mother know if the brother stops making payments? She'll get the notice in the mail, right?
The J stands for Jay

Jack FFR1846
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Re: Home equity loan for a business quandary

Post by Jack FFR1846 » Wed Jul 11, 2018 3:12 pm

This is a big issue. My first task in determining what to do would be to honestly answer one question if any action is taken.

What could possibly go wrong? (a Jeremy Clarkson accent is acceptable)

Unfortunately, the answer is: He stops making payments.

I say to just stay out of it.
Bogle: Smart Beta is stupid

Silk McCue
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Re: Home equity loan for a business quandary

Post by Silk McCue » Wed Jul 11, 2018 3:23 pm

Jack FFR1846 wrote:
Wed Jul 11, 2018 3:12 pm
This is a big issue. My first task in determining what to do would be to honestly answer one question if any action is taken.

What could possibly go wrong? (a Jeremy Clarkson accent is acceptable)

Unfortunately, the answer is: He stops making payments.

I say to just stay out of it.
Not certain that I could stay out of any issue regarding my mom's financial well being and peace of mind. I would try to choose the best path forward but would keep my focus on my mom and her needs. That is a grown child's duty in my book.

Cheers

ColoradoRob
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Re: Home equity loan for a business quandary

Post by ColoradoRob » Wed Jul 11, 2018 6:14 pm

HomerJ wrote:
Wed Jul 11, 2018 3:02 pm
I definitely wouldn't buy the house now (why let the brother off the hook for the on-going payments?)

But be prepared to pay off the loan in the future, by PURCHASING THE HOUSE.

If you own it, then you don't have to worry about your mother changing her will, or getting another loan.

Let her live there rent free, and when she dies, you don't inherit the house; you already own it, so you just sell it at that point, and get all (or at least most) of your money back.

Edit: One question. Will the mother know if the brother stops making payments? She'll get the notice in the mail, right?
I don't know what would happen if my brother stopped making payments. I doubt that she would know since the "bill" goes to him for payment. That is something for my mother to look into. Good for us to think about. Thank you!

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