Inherited a House/Mortgage

[djs]

Never trust an insurance guy to answer a mortgage question. Never trust a mortgage guy to answer an insurance question....

That said, my guess is if the payment shows up every month, they will cash the check and never question how it got there. No questions, no problem.

There is likely an acceleration clause in the mortgage upon death of the mortgagee, but they may not exercise that option for a while.....

If one of the siblings wants to keep the house, have them buy it at a fair price. If none do, then sell it.

Dan

 

[Fastest H-Town L&H Agent]

Technically, the mortgagee (bank) has the right to demand full payment upon desertion or transfer of the property (acceleration clause) of the mortgagor (dad). That being said, and understand there is no guarantee to this information, but as long as the payments are kept current, even after the recording of the new deed (you did go to the courthouse and register that title transfer, right?) the bank (servicing company) will still accept payment and amortize the loan until it is paid in full.

 

[sokybrian]

Keep making the payments and the bank will thank you. Don't stress that.

Find the best Auctioneer in your area and sell it absolute at auction. Sold in 30 days, everyone has their money, and the loan is gone.

When there is siblings involved, most of the time they will fight harder for free money than any money they ever earned.

Trust me - Auction. Headache gone in 30 days.

SoKyBrian

 

[Newby]

I don't think the estate could ever be closed if there was still a mortgage in the deceased name.
I would push to sell the property either to one of the five involved or on the open market.
It's easier to split up cash five ways.

 

[sokybrian]

A good probate attorney would certainly be able to clear this for sale at aution - especially absolute, within days of signing the auction contract. The key to absolute is not only the "Final" sale, but the fact that any of the 5 heirs can bid, and apply their part to the purchase.

There is always one of the heirs that will think it's not going for enough money - well then raise your hand and place your bid. All this seems sort of "matter of fact" but trust me, after doing this most Saturdays for 23 yrs, it's the best way. Keeps the family together, and avoids long, drawn out divides. And - after the sale, they will know exactly what the property was "actually" worth.

Sell it, pay off the mortgage, and move on. Like I said before, heirs will fight over free money harder than any they ever earned.

SoKyBrian

I don't think the estate could ever be closed if there was still a mortgage in the deceased name.
I would push to sell the property either to one of the five involved or on the open market.
It's easier to split up cash five ways.

 

[Newby]

This is the TRUTH!

 

[jodieB]

Can you not speak to a financial advisor to see you options are. It does seem in an ideal world that you all chip in and pay of the mortgage but like you said you don’t know if they are in a position too. Have you considered that one person pays off the mortgage or the one that can afford it and then sell the house, take your money back and split the sale money (this will require trust but maybe see an attorney to get a written legal agreement?)

 

[jtow]

My opinion, speak to the lender that has the mortgage now to see what they will accept, and go by that. If you can do it, perhaps pay the note off yourselves, however file a lien against the property for the $20K so you will be able to get the money back out of the proceeds when the property is sold.
My .02 cents worth.

 

[Sales71]

You should have it in writing.

 

[djs]

I hope this has been resolved by now.
Perhaps not, but if not, the options are fewer now.

Dan