Spouse Dies Mortgage Question

[SportsNut]

I have a relative in Florida and their spouse is dying (husband).

-She is on the deed but not on the note.
-The mortgage was re-done in order to get the payments to an amount that would be affordable. They were like 1,000 per month and they are now less than $500 (modification)

She was told by her accountant that when he dies the bank will foreclose on the house even if she continues to make the payments or turn around and make her responsible for them.

This doesn't make any sense to me. Seems like everything would just stay the same but I dunno. She's 76 Y.O. and not interested in buying the home going through all that mess again.

I guess then my question is, what's likely to happen in this case? What advice would you give her for those 'in the know'.

First off, the Accountant is ignorant of the law and he/she has no right advising ppl on things that they have no knowledge of.

Garn St Germain Depository Institutions Act of 1982, gives the right to her wether she is on the mtg or not. She has the right to pay the mtg and the Lender cannot call the mtg because the original debtor is deceased.

Suggest you read an except of Garn below, para 4, subsection (5), it identifies your exact situation. HERE
The entire law is eons long but the excerpt above should serve your purpose.

You could go see an Atty, chances are they have never heard of such a thing... Any more questions on this, I can cite you chapter and verse.

The only rarity in this case is due to the modification, but it won't change things as long as she remains current on the pymts, taxes and ins.

 

[leevena]

Sportsnut is correct. We just went through this with my in-laws, who both passed away and the house was left to 5 children. Small mortgage left on the house, along with yearly propoerty tax, HOA's, etc.

We notified all the entities we needed to (mortgage company, HOA, house insurer, utilities, etc.) and provided them proof of death and power of attorney. It's been more than two years, we are paying all expenses and no problems.

There are a few things you should be cautious about though. The first is if there was some type of home equity loan or reverse mortgage. These could have an automatic repayment feature to them. The second has to do with the word "modification" and what it really means. If it is merely a restructuring of the mortgage debt you should have no problem, but if it is something else it might be worth having an attorney review.
Good luck

 

[djs]

Is she underwater on the house? If so, move out and let them foreclose. Okay, at 76, that might not be a good idea!

 

[WorldWideWayne]

Opinions are great to get...but you can't bundle up all the opinions you get here and take them to the judge who's gonna hold the foreclosure hearing. He does not care what chapter and verse someone here can quote, nor what someone in another state says is law in his state.

All the above people may be right...they may be wrong...but your local real estate attorney knows the law...and best yet, knows the judges, and how they think.

Most likely the bank will not care if they are getting their payments...however if they do, you will need an attorney. Just "my opinion"...

 

[SportsNut]

All the above people may be right...they may be wrong...but your local real estate attorney knows the law...and best yet, knows the judges, and how they think.

Just "my opinion"...

WWW: You'd be surprised at how many times the local RE atty doesn't know squat. I have cited a Fed'l law above that is absolutely pertinent to this situation. I once had a conversation with one of the biggest and most successful RE attys in my city, and he never hear of Garn - St Germain Act. Following that, I provided him a bit of education on the subject, for which he hated to admit that he was grateful. (Atty egos don't allow gratitude much). So don't assume that Attys know the law; they know where to look, or know how to direct a law clerk to draft a doc for them that they then present of file in court.

If and when my fat is in the fire, I do my own research and more than once has proved that the Atty didn't really understand the subject matter. So believe what you will, but if ever faced with something like this, remember my sentiment here. Do your own research and know first hand what you options are.

 

[beevelbop]

I do reverse mortgages and what they do is run social security numbers. If the soc comes up as deceased the lender will call the loan.

(oh, happy 1st post to me!!!)

 

[acesdown]

I would check to see if there is equity and look at a reverse mortgage. At 77 years old now, why would she want to keep making a payment if she doesn't have to. PM me if you still need help.

 

[b61mack]

The law states the mortgage is asumed by the spouse.

 

[Accelerated]

Yet another thread necro.. over a year old.