Slight hijack…. I have a hypothetical situation I’d like some knowledgeable folks to chime in on…
Consider this… ..Suppose you’re inlaws decides to write you and your spouse for the full purchase price of the loan plus per fair/market rates on the loan…..However, the terms of the loan are you only need to make interest payments, but have one huge lump sum payment consisting of the entire principal say 50 years from now….
Consider also that your spouse is the beneficiary of his/her parent’s estate (in some shape or form…Suppose your inlaws pass away in some distant future and for argument purposes let’s say this loan ends up in their estate and you and said spouse are beneficiaries of that part of the estate…IE the specfics of the willing/trust etc say you and your spouse inherit the loan on that property….
a)Does this pose an interesting situation? (IE you owe said inlaws for the loan, but at the same time you now inherited the loan)?
b)Consider the other situation in that you and spouse refuse to pay the lump sum payment back to the estate, for which you inherit anyway… Normally, the creditor would initiate foreclosure, right? But how do you foreclose on yourself? Is there a way you (as the beneficiary of the estate) could just chalk up the unpaid loan as a non-performing/asset(IE loss)?
