Re: Legal protection on assuming real estate mortgage with special circumstances

Well, given the uncertainty regarding the existence of a will and your doubts, the ideal solution would be to have your father-in-law re-finance the house and property with you and your wife as co-borrowers and co-mortgagors, add you and your wife to the deed as joint tenants with rights of survivorship and then let you live there. Thay way, if he dies, you already own the property. Of course, his death could cause the loan to go into default if it were not yet paid off but hopefully by then your credit would be rehabilitated.

If he is unwilling to go to those lengths, yes, theoretically you could sign a basic contract, such as a lease agreement, allowing you and your wife to live there and make payments with the provision that once all payments are made, the property would be deeded to you and your wife. Generally, most contracts can include language that binds any successor or heir to the property. I think the first method would be the safest but I think something could probably be crafted along the lines of the second option that would provide a fair amount of certainty. Of course, working out legal matters is always touchy with family involved. But, speaking from the position of having seen any number of very informal arrangements among family members go completely awry, I believe you are on the right track in trying to set something down in writing.

Keep in mind that this is very general advice and it may not be completely accurate without full knowledge of all the details. I would suggest you speak with an attorney at greater length about all of the ins and outs of this deal. Good luck!