Reply to What happens to a balloon note when the lender dies?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Are there other heirs?  Siblings?  Presumably an arrangement could be worked out amongst you.  Will she likely have a large estate where your share would be 300k or more?[/quote]

OP here, I do have 1 sibling.  He also has a note from her, not for as much, not entirely sure but 100K plus for sure.  She will have a large estate, but most of it will not be liquid.  She owns a home with a mortgage to a non family member and has other fully owned real estate property.  In terms of cash I don't think it will be more than 300K but I assume total assets would be around 1 million.[/quote][/quote]

OP, at the time of your mother's death, your note and your brother's will both be both assets of the estate.  Using a discount rate the you and your brother agree on, you can compute the then present value of the stream of interest and principal payments from both notes.  You would each then reduce your share of the estate by the then present value of the forgiven notes.  So, you brother would get more cash or real estate, while you would get more load forgiveness.     [/quote]

Op I was in this situation and we did this. I "got" the mortgage paid off and he "got" more in cash/equity.[/quote]

Great, thank you for this.  If you don't mind and have the time, what was the process, was that done via executor, did you guys just agree to it and write something up?  [/quote]

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