Spouse died what happens with the mortgage?

Question

My father passed away recently and the paper work from the lawyer who handled his will and distribution of the estate and paper work for the joint items my mother and father had.
Will the mortgage company alter the payments if my father's name is removed from the mortgage leaving only my mother? I am very concerned about this because my father was paying an insanely low $650ish a month on their large estate home in Southern California (there is only 79000 left in the mortgage) and I don't want them to increase the payments.

Answer 1

The loan agreement will cover this issue. Grab some coffee and start leafing through it.

Answer 2

Hopefully your mother can continue to make the payments. Can you and any brothers/sisters give her some help on a monthly basis? Check deep in your father's paper's. There might be an insurance policy that would pay off any remaining mortgage at the time of his passing.

Answer 3

Your father's mortgage was, without a doubt, secured by the home as collateral. As long as your mother continues making the monthly payments as agreed, nothing should change. Of course, if mother doesn't make the payments, the lender will start foreclosure on the property as a means of collecting the remainder of money due to the lender.

Answer 4

Downtown, have not got faith TheMom. ReverseM is right. The economic enterprise does not very own the homestead. The property does. in the adventure that your sister is the inheritor, as spouse, then she has criminal declare to the valuables. She formally has 6 months to pay off the loan, yet lenders can provide 2 3-month extensions as long as she is creating an outstanding faith attempt to the two sell it, or refinance it in her call; interest will proceed to accrue interior the period in-between. So, technically, she would have the capacity to stay there for as much as a 365 days with out any funds. The economic enterprise won't settle for lease in lieu of paying off the loan. Have her communicate with the lender at present. if she is over 62 now, she is eligible for a opposite loan herself, assuming, with actual property the way it particularly is immediately, there is adequate fairness to pay off the present loan. If she sells the homestead, any monies left over after paying off the loan, present liens, and the actual property value, is hers. If the home is underwater (owes greater advantageous than it particularly is properly worth), and he or she does not desire to bypass interior the path of the problem of a sale because she would have the capacity to no longer receive something from it, she would have the capacity to compliment to sign a Deed in Lieu of foreclosures; particularly, this suggests she is strolling faraway from the homestead and giving it to the economic enterprise, and the economic enterprise seems after merchandising it. The economic enterprise can't bypass after her individually or the different sources her husband could have had, and it won't impression her credit. it particularly is a non-recourse loan.

Answer 5

A mortgage loan is a contract. It cannot be changed without the agreement of both parties. In the case where one party involved in a mortgage dies, the full responsibility to make the payment then goes to the surviving co-borrower. The mortgage amount and payments due cannot be altered without your mothers concent.