Please help with Mitchell Lama Apt. after Death

[fudge]

Hi,

Without disclosing too much info, here is the situation...

My mother recently passed away and lived in a Mitchell Lama apartment. My loving mother did not have a will and she didn't leave anything of great value behind but left behind about $15,000 in credit card debt. She was divorced from my father who is still around, so no one in the family is liable for that debt. The companies are trying to collect on her debt now, but the only thing I can see that they go after in her estate is the equity of the apartment which is not even half the credit card debt.

My questions are:

Can the credit card companies go after the apartment, which I guess will mean the we relinquish any rights to it?

And what should I, or can I do, to make sure that they do not go after the apartment?

Any advice is greatly appreciated!!
Thanks!!

[Cranky Tenant]

This sounds like a complicated situation that could only be answered by an attorney who specializes in estates.

One of the main questions might be, if your mother didn't leave a will, who is administering the estate and how many beneficiaries are there? If you're an only child and your father has given up all rights in the divorce, her estate would probably go directly to you but whether or not they can seize the apartment is another matter,

From what I understand collection agencies often purchase debt for pennies on the dollar. Even if the value of the apartment is less than the debt, there's plenty of room for a collection agency to make a profit.

<small>[ August 21, 2003, 04:13 PM: Message edited by: Cranky Tenant ]</small>

[consigliere]

If you were living with your mother for the past two years and your name and income were reflected on the most recent annual income affidavits, you should have succession rights to the apartment.
 
Your mother's creditors might not even realize that the apartment is a co-op and not a rental. Depending on the amounts of the separate individual debts, the creditors might just write off the debts.
 

[fudge]

Hi,

Thanks so much for both of your help...

Here is a complicated twist to my apartment... My name is on this years affadavit (which I guess is good for the 2002, 2003 year) My name was also on the affadavits from 94 when my mom first got the apartment up until 2000 when my name was off until this year. In those years, I wen back to grad school. Is there anything that can be done, or can they say I have no rights to the apartment?

Thanks!!

[Cranky Tenant]

As far as I know, a child doesn't give up succession rights when they go to college since school isn't considered a permanent residence.

The fact that your name appears on more recent documents should substantiate that but it may be harder to prove than if you had lived there continuously.

[fudge]

Hi,

I was told that I would have to prove that the apartment was my place of PRIMARY residence even through grad school. Is that right? The only things I really had there besides the affadavits were some credit card bills at that address.

Most of my things were addressed to my dad's place in brooklyn just because it was convenient.

Please help on this issue. Any advice on this would be greatly appreciated.

Thanks!!!

[Cranky Tenant]

Credit card and any other kind of bill you received at your mother's address would certainly help. Also voter's registration, driver's license, or non-driver's ID. financial aid applications and student loans could also help establish it's your permanent residence. Since you're her daughter you probably wouldn't be expected tp produce as much documentation as a spouse.

[fudge]

Hi,

Unfortunately, I kept many of my bills and documents with my dad's address out of convenience. It was just that a great deal of my mail was always getting lost with my mom's apartment, and then since I am always visiting my dad, i just kept everything at his address. So I really don't know what will come out of that.

In terms of the rights to the apartment, does it help that I have been there and on the affadavits since my mom first got the apartment?

Also, with the other issue in terms of the credit card companies, can they claim the equity of the apartment if that's the main possession of value of my mom? And finally, is there anything I can do to prevent that without having to pay for her debt?

Thanks so much!!

[Cranky Tenant]

You didn't mention whether or not you've actually been living in the apartment or how old you are. As the daughter there's a limited amount you can prove. Children don't normally pay the bills or share in a joint checking account. So to some extent, the burden of proving the apartment isn't your primary residence could fall on the co-op.

On the other hand, if you're married and have children, and there are neighbors willing to say they haven't seen you in years, that would indicate it's not your primary residence.

As consigliere said, the creditors may not be aware the apartment is a co-op. From what I understand collection agencies often purchase these accounts with little or no information. Consulting an attorney who is experienced in estates is the best way of finding out what the credits can do ,and steps you need to take in order to protect your interests.

[Cranky Tenant]

You didn't mention whether or not you've actually been living in the apartment or how old you are. As the daughter there's a limited amount you can prove. Children don't normally pay the bills or share in a joint checking account. So to some extent, the burden of proving the apartment isn't your primary residence could fall on the co-op.

On the other hand, if you're married and have children, and there are neighbors willing to say they haven't seen you in years, that would indicate it's not your primary residence.

As consigliere said, the creditors may not be aware the apartment is a co-op. From what I understand collection agencies often purchase these accounts with little or no information. Consulting an attorney who is experienced in estates is the best way of finding out what the credits can do ,and steps you need to take in order to protect your interests.