Legal Question in Real Estate Law in Maryland

Pay off parents mortage?

My parents are retired and living on a mostly fixed income. My father was an military physician and draws a modest pension. He still does some consulting to supplement their income.

They live in suburban Washington, D.C. and their house is probably worth close to $500k. I believe they owe approximately $80k on a first mortgage on the house.

My mother was just diagnosed with cancer and I am considering whether I should loan them enough money to pay off their home, freeing up some of their income to ''enjoy life'' and deal with this problem. I don't have a lot of spare cash, but could swing the $80k.

I would need to earn a very modest return, the minimum needed to keep the IRS from imputing interest & would also need to secure the loan with a lien on the house. My intention is that they not make any payments to me at all - that I'd just get paid back from their estate.

Is this feasible and if so, how would I go about getting the proper documents drafted?


Asked on 10/30/07, 10:40 am

1 Answer from Attorneys
Julia Colton-Bell Law Offices of Julia Colton-Bell, LLC

Re: Pay off parents mortage?

The easiest way to handle this is for your parents to put something in their will specifying you get back what you paid for and any expesnses you incurred as a result of paying off the mortgage.

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Answered on 10/30/07, 11:08 pm


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