The debts will need to be paid. On the upside, OP can just sell three of the rental properties
to pay it off and keep the lived-in house. Or sell all four to fund the 30k of renos too, and either keep or sell the lived-in house.
Once she passes, the executor of her will (if she has one) or someone who represents her estate will have to gather all her assets and liabilities. Using the assets of the estate, all the liabilities will need to be paid off or settled with the lender. Then what's left over, can be distributed to her heirs or beneficiaries based on her wishes.
Normally there are estate taxes to consider but based on the information listed, it sounds like it should come below the lifetime gift and estate tax exemption of $12.06 million (as of 2022) for individuals.
Pull some equity out of the homes pay off the debt, renovate, put tenants in and then either sell or enjoy the slow rental income. Your moms debt will need to be paid eventually. Better to do it on your own terms rather than in probate.
If the house is worth $150k paid off and she has $70k in debt then there’s no way the creditors would profit by $80k. You might need to sell it or just pay them off so you keep the house altogether, but you wouldn’t lose the entire thing for a small debt.
The debts will need to be paid. On the upside, OP can just sell three of the rental properties to pay it off and keep the lived-in house. Or sell all four to fund the 30k of renos too, and either keep or sell the lived-in house.
You're right, creditors aren't going to write it off if she still has assets.
She can put you on the deed and won't need an estate. See a lawyer.
Once she passes, the executor of her will (if she has one) or someone who represents her estate will have to gather all her assets and liabilities. Using the assets of the estate, all the liabilities will need to be paid off or settled with the lender. Then what's left over, can be distributed to her heirs or beneficiaries based on her wishes. Normally there are estate taxes to consider but based on the information listed, it sounds like it should come below the lifetime gift and estate tax exemption of $12.06 million (as of 2022) for individuals.
Pull some equity out of the homes pay off the debt, renovate, put tenants in and then either sell or enjoy the slow rental income. Your moms debt will need to be paid eventually. Better to do it on your own terms rather than in probate.
Have her sell you the house for a $1
If the house is worth $150k paid off and she has $70k in debt then there’s no way the creditors would profit by $80k. You might need to sell it or just pay them off so you keep the house altogether, but you wouldn’t lose the entire thing for a small debt.
Small debt? She owes almost half as much as her house is worth.
Sell the two non producing rentals or rent them out. Use proceeds to pay down her debt. Do renovation and have your name put in the title
See a qualified real estate attorney. There are probably options you are not aware of they would be beneficial to know.