Legal Question in Wills and Trusts in North Carolina

This is a recipe for disaster if not done correctly. I don't understand why the house has to be deeded to one person and then deeded back.

And why do 5 people want the house? The proper way to do this would be for those who actually want the house to buy out the share of those who don't using the current value of the house, needing work. Once the loan is obtained, then the person whose name is on the house cannot convey the house back to the siblings if the house is encumbered by a loan as it would violate the due on sale clause. Also, why would one sibling get stuck paying back a loan when all would benefit?

I think its better for the sibling who wants the house to buy out the shares of those who don't. This can be accomplished by quitclaim deeds. Once everyone has conveyed their interest in the land to the siblings who want the land, then the owners of the land can try to get a loan to fix it up. However, will that person qualify for a home equity loan? While banks may be willing to lend, the borrower has to have the ability to repay the loan.

If the owner cannot afford to fix up the property and buy out the share of everyone then the person needs to get everyone to agree to the loan. However, there should also be an agreement as to who is going to be responsible to repay the loan and everyone is going to have to contribute towards making that happen.

If the siblings cannot all agree, then I would suggest that the land be sold now in a where is, as is condition and that the siblings split the money and not worry about this.

I suggest that the siblings talk to a real estate attorney in the land where the property is located as the real estate attorney will be able to assist the siblings with preparation of a quitclaim or other deeds.