help remortage question?

Question

my dad just died and he got remortage on his house what now does his kids need to pay it back or is it quashed he as no seprate insureraces to cover it or his he alredy coverd for death

Answer 1

It would most likely have to be paid out of the estate. As with any other debts.

Answer 2

The first ting you need to know is who is going to take responsibility for the house. Whoever that is, need to (1) bring the current mortgage up to date. If there is insurance to bury your father. The need to worry is low.

If the burial is taken care of, and someone can live in the house and pay the mortgage, in time all will work out. If the burial is not taken care of and no one wants to live in the house, this is a big problem. This is the problem that causes most of us much headaches and hard times. Check the home owners policy and see what it covers. It may contain a clause that the mortgage will be paid for 2 -6 months in the event the mortgagor can not make payments.

This clause would be binding until the property is transferred to the next of kin. I would suggest that the property is rented for 1-2 years, then lived in for up to (1) year before you attempt to sell it. The reason is that the bugs need to be worked out so that the sale will go smoothly.

The sooner you get someone living in the house, and check the insurances, the better you will make out. I would stay away from agents of any type, their main focus is earning an income. Your main focus has to be on prevention of loss.

Answer 3

The mortgage is a lien on the property, so the heirs who take the real estate will have to pay the mortgage, either by continuing the payments or by refinancing in their own names or in the name of whoever winds up owning the house.

If he had life insurance enough to pay some or all of the mortgage after his funeral expenses are paid, the money could be used to do that.

It depends on the laws of the state he died in, as well as other factors, like the equity in the house (value of the house after deducting the mortgage and other liens on it). You should be talking to an estate lawyer in that state.