2007-01-27 09:10:34 · 6 answers · asked by Jimmy C 1 in Business & Finance ➔ Personal Finance
If the property is passed on to an heir, the mortgage becomes due, and the heir must pay it off or refinance. If the property passes into the estate, the property is sold, and the proceeds are used to pay off the mortgage.
2007-01-27 09:17:31 · answer #1 · answered by Allan 6 · 0⤊ 0⤋
A person's estate is made up of their cash (including from insurance) and investments, property and possessions.
After someone dies their estate is handled by one or more 'executors' - or an 'administrator' if there wasn't any will. These are usually a relative or friend and/or a solicitor.
If the estate's worth above a certain amount the executor or administrator will need special permission - called 'probate' or 'letters of administration' - to be able deal with the person's affairs. This includes paying off their debts.
2007-01-27 09:19:42 · answer #2 · answered by Debt Free! 5 · 0⤊ 0⤋
The bank or lender of the mortgage puts a lien on the property till they are paid in full. Either by a family member coming in and making right with them or the sale of the property that the mortgage is on.
The banks NEVER get screwed over... even after death they get what they have coming by squeezing value out of everything you left behind. Probate makes sure of it and your heirs get nothing till it is taken care of.((if you owe people at your time of death))
2007-01-27 10:28:50 · answer #3 · answered by Kitty 6 · 0⤊ 0⤋
i'm actual sorry approximately your mom, as I had very almost the comparable element take place not so some time past. Her will, if she had one, will say who she desires to have her homestead and contents and all different tangible sources; despite if, interior the case of a house with a own loan on it, the money could desire to be made, with the help of the executor out of your mom's liquid sources until eventually the valuables clears probate, that's in general sixty days from submitting all of the mandatory paper artwork. The executor, understanding the particular inheritor or heirs which would be getting the homestead, will propose them to pay for it, if the choose does not grant for the skill to accomplish that, or if she died intestate, (devoid of will), then the persons this is next of kinfolk, probable you and the different siblings she had, could desire to safeguard the money. extremely, the own loan enterprise could be notified as she could have had existence insurance for the payoff of the own loan debt. In any journey the valuables desires to be secure if there is significant fairness and if no or no fairness basically enable it bypass back to the own loan enterprise, in case you do not choose the homestead. returned, the executor/criminal expert could propose and whilst there are countless sources, you opt for to clean probate as quickly as conceivable.
2016-12-17 04:06:48 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Sometimes the bank buys life insurance for you and if you die the insurance company pays the bank your debt.
If that is not the case (You have to ask them) then your debt will be paid by your Estate (Not to be confused with State)
2007-01-27 10:32:13 · answer #5 · answered by Anonymous · 0⤊ 2⤋
the estate becomes liable for balance owed.
2007-01-27 13:10:37 · answer #6 · answered by crazy b 3 · 0⤊ 0⤋