Your questions cannot be answered with the limited information provided. More facts are needed, including the value of the property and the equity. You may not currently have this information, but you may be able to obtain a lot of it from public information sources.
The agreement and the deed need to be reviewed by an attorney to determine whether probate is needed. If it is, you would need to factor those costs into your cost-benefit analysis.
***Please be sure to mark if you find the answer "helpful" or a "best" answer. Thank you! I hope this helps. ***************************************** LEGAL DISCLAIMER I am licensed to practice law in the State of Michigan and have offices in Wayne and Ingham Counties. My practice is focused in the areas of estate planning and probate administration. I am ethically required to state that the above answer does not create an attorney/client relationship. These responses should be considered general legal education and are intended to provide general information about the question asked. Frequently, the question does not include important facts that, if known, could significantly change the answer. Information provided on this site should not be used as a substitute for competent legal advice from a licensed attorney that practices in your state. The law changes frequently and varies from state to state. If I refer to your state's laws, you should not rely on what I say; I just did a quick Internet search and found something that looked relevant that I hoped you would find helpful. You should verify and confirm any information provided with an attorney licensed in your state. I hope you our answer helpful!
This is way to complicated to advise on a forum. You should schedule a meeting with an attorney where you can tell him/her everything.
I would suggest you take all of the information you have to an attorney for review. If the house in in her name you will most probably need to open a probate to transfer it out. You did not mention if there was a will, or if there is equity in the home. Seek a bit of help and close this matter correctly. If the creditor is deceased the proceeds should be to their estate, or perhaps heirs.
To the PROSPECTIVE client, please call myself or another attorney for your choice with more detaiils and an appointment. My PRELIMINARY answer to your question(s) is for general purposes and based upon what little information you have conveyed. It is based on such limited information that the general answer should never be relied as a reason for your action or inaction. My response does NOT establish an attorney-client relationship and such may only be established by mutual agreement, and the signing of a written retainer agreement, which will generally require payment for our services, as this is what we do for a living and, just like you, we must get paid for our work.. .
If you liked the lawyer you talked to, go back and see the lawyer again, and this time take notes and ask questions until the two of you have developed a plan of action.
I am licensed to practice law in Michigan and Virginia and regularly handle cases of this sort. My answering your question does not establish an attorney-client relationship. You should consult a lawyer so you can tell the lawyer the entire situation and get legal advice that is precisely tailored to your case.
First, I do not think I completely understand the question.. your mother purchased the home or somebody else did then quit claimed it to her? In consideration of the quit claim she promised repayment in writing? Was the agreement to repay ever recorded against the title to the house? do you know who the heirs of person that was promised repayment are? Have you done a title search to investigate whether the attorney actually recorded his lien against the title to the house?
If you know the beneficiaries of the person who was nice enough to buy the home for your mom ... make yourself feel good by contacting them. If you know that persons family or any one else try to contact them.. and tell them about the situation.
If you do not have the information .. try contacting the probate court in the county where that person passed.. there may have been an estate filed with all the relevant information.
BTW a typed will without witnesses to the signature is not valid as a will in Michigan. However if your brother and you are your mom's only children you have priority if you want to serve. if not you can waive and let the heirs of her creditor serve. HOWEVER your costs of burying your mom may be a priority in the estate .. if you paid you get the monies refunded first.
Please note that I answered this question with general knowlege of the law and with limited disclosure from you, my answer does not create an attorney-client relationship and I cannot be held responsible for how you, the asker, use the information provided. If you want to contact me directly and retain my services you may through my listing on this site or at 248-901-0750 or firstname.lastname@example.org.