Am I responsible for the balance on the mortgage that my mother took out
Am I responsible for the balance on the mortgage that my mother took out
My mom left her house to me. she had it in trust until her passing. She had a mortgage on the house, but did not have the insurance on it if she should die that it would be paid off. Her name was the only name on the mortgage. Her name is now off the deed and mine is the only one on it. Am I still responsible for the balance of the mortgage.
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Yes you are. There is a lien against the deed for the mortgage amount. If nobody is making payments, the bank will foreclose.
1
Hey brat610,
When you do not pay your mortgage, or stop paying your mortgage, many things will happen. First, the lender reports to the credit bureaus that you have not paid. Second, your credit score will drop as much as 200 points. Your credit company may raise their interest rate, lower your credit limit, or close the account. Third, after 90 days of not making payments, the lender will contact you, trying to persuade you to make a loan modification. If you do not wish to cooperate and continue missing payments, you will be served with a foreclosure and eviction notice, taken to court and the house will be put up for auctioning.
A foreclosure is a way to protect the lenders investment in your property if you are unable to make further payments on the house. The lender could take action in claiming a foreclosure in order to regain his investment. When a house goes into a foreclosure, the property is then put up for auction and the money from the sale goes to regain the lenders investment. A foreclosure can seriously harm your credit score and lower your chances of taking out a loan in the future.
Hope this helped you out!
Best Regards,
Pete Kolackovsky
http://www.mortgage-calgary.com">http://www.mortgage-calgary.com