I have a friend who's father and grandmother have both now passed on. The Mortgage was in their names. Their mother is still residing in the home (beign the wife of the owner, but not on the loan in name).
What happens, if anything?
2007-09-25 04:17:58 · 7 answers · asked by Samantha S 1 in Business & Finance ➔ Renting & Real Estate
The loan is being paid, and I am guessing as long as it is paid they won't be demanding anything.
2007-09-25 04:27:35 · update #1
nothing happens, as long as the mortgage is paid they dont care who pays it.
As far as selling the house, that is a different story-you would have to determine ownership. First you have to find out if there was a will, or a trust. if there is not then determining ownership is difficult because the wife would own half and the descendants of the grandmother would own half. This type of situation usually turns out to be a mess becuse you have 10 people owning a property and some think they are more entitled than what they are.
2007-09-25 04:26:02 · answer #1 · answered by D. J 2 · 1⤊ 0⤋
If the lender finds out that the persons on the mortgage are now deceased, they will demand pay off on the mortgage. If they do not, they will be in legal situation that could prevent them from foreclosing easily at a later date, if they ever were needing to do so. If they do not know, the mortgage company will keep the mortgage going as long as they are receiving the payments.
The administrator of the estate should legally inform all parties that have a potential interest in the estate - including the mortgage holder.
2007-10-01 08:33:30 · answer #2 · answered by walkinandrockin 3 · 0⤊ 0⤋
The estate owes the money. As long as the mortgage is still being paid, the lender probably won't do anything although technically they could probably demand payment or demand that the mom refinance in her name.
If the mortgage isn't being paid, the lender will foreclose.
2007-09-25 04:22:10 · answer #3 · answered by Judy 7 · 2⤊ 0⤋
This is a legal question, is it tenants in common, is it in a state that has rights of survivorship? The mother may have inherited the house with encumbrances. There may have also been mortgage insurance. It may be paid for now. In Nevada, my wife will get everything when I die.
2007-10-02 14:49:56 · answer #4 · answered by Wylie Coyote 6 · 0⤊ 0⤋
i am amazed that the previous
owner did not have insurance to cover this mortgage in case of death.
ARE YOU sure it was covered in
a will or in the mortgage itself? check it out!
YOU said there was an estate.
What are the assets and cash flow of the estate?
I am betting the trustor can pay off the mortgage and has chosen not to at this time. Am available to help further.
2007-09-30 17:02:07 · answer #5 · answered by kemperk 7 · 0⤊ 0⤋
Hi,
If the legal heir takes care of rest of payment, there may not be any issues. If not, the mortgage company will take steps to take over it. Checkout http://mortgage.creditmortgagepro.com for some useful info on the matter. Good luck!
2007-09-25 04:26:21 · answer #6 · answered by Barton 1 · 1⤊ 0⤋
Judy said it. It's still in the estate's name. Someone still owes on the loan and the bank would foreclose or put loan in wife's name.
2007-09-25 04:25:27 · answer #7 · answered by Casie 4 · 0⤊ 1⤋