Legal Question in Real Estate Law in Massachusetts

Home Equity Loan for addiiton

Is it a good idea for my 85 year mother to take out a home equity loan for 100,000 and loan the money to my husband and I (her daughter) to build a family suite addition to her home in which we will reside. We cannot afford to build it ourselves, and need a loan form her to build it. This would enable her to stay in her own home and not have to go into a nursing home if she were to need care in the future. It would give me the financial abilty (due to a reduced mortgage payment)to take a leave of absence from work (FMLA) if she needed 24 hour care. We would own the addition and she would own the house.


Asked on 10/22/06, 4:20 pm

1 Answer from Attorneys

Re: Home Equity Loan for addiiton

The loan, if the bank would grant it, would become an estate asset and you could have issues if your mother passes away before the home equity loan is repaid and the home needs to be transferred. If you would like help structuring the transaction, and if your mother would like to update her will accordingly, please contact my office and we can help arrange the details.

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Answered on 10/23/06, 8:28 am


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