What happens to a mortgagae when both parents pass away?

Question

Do the siblings have the option to buyout mortgage?

Answer 1

that is an option OR check into their insurances- my parents have an insurance they pay monthly so if anythig were to happen to them the home ie paid off and my brothers and I keep the home or split the profit otherwise if you guys are not able to afford the rest of the home then they would auction the home off and take the amount that was paid on it and ride it off unless there is an inheartince or known money that your parents had left you

Answer 2

The person or persons that inherit the property are responsible for any open bank loan.  The person that is the executive of the will can contact the bank and determine how to proceed.  The bank may write up a new agreement so that payments can continue from the new owner or they can ask for a full payment from the inherited money.  Usually, the bank will go along with the new owner's wishes if they have a good credit rating.

Answer 3

There is alot of misinformation going around on Y!A regarding these types of deals, so here is the REAL deal.

IT DOES NOT MATTER, how the mortgage was set up...they are all the same.  People make a death of a mortgage holder complicated, and there is NOTHING complicated about it.

1.  Remember that the bank doesn't care who makes the payments...as long as someone does. They are not going to require the estate to refinance or "call the note" because the mortgage holder dies.

2.  The person that inherits the home DOES NOT inherit the legal personal responsibility of the loan....what that means, is that it doesn't affect their personal credit if it doesn't get paid.

3.  Even if the house is in probate, if the payments do not get made, this doesn't give the estate a 'pass'.  The mortgage company still has a right to foreclose if they don't get their money.

4.  The person that inherited the property, once out of probate CAN add their name to the title, which will give them full legal rights to sell the property....and it gets handled like any other sale transaction.

5.  The bank is NOT going to just "redo" the note.  This is how they make money.  Once out of probate, you can refinance in your name, b/c if it's in the name of the original mortgage holder, you cannot take the tax deductions for the interest.  

Hope that answers your question.

Answer 4

if they had  life insurance on it..the morgage should be paid for>> ..other wise  youns could

Answer 5

Whomever inherits the house gets the house, debts and all.  If the mortgage or debts are too much - the new legal owners can always sell it.

Answer 6

hello baby c an you see

Answer 7

It all depends on how the mortgage was set up - you should have the option as the executor of the will

Answer 8

It depends on how the estate is set up.  Ultimately, the estate is responsible for the debt.