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if payee dies is the estate liable

Posted on: 07th May, 2009 05:50 pm
if my father dies and i am the surviving member of the family will i have to repay mortgage.
If the property transfers to you then you would likely have the option of continuing with the payments, or you can sell the house. If you sell the house, then the loan would be paid off at closing.
Posted on: 07th May, 2009 06:20 pm
I think the loan documents would spell this out some thing about DUE ON TRASFER. That clause will define what happnes to the loan.

I think it is expected to say, Due on Transfer the new owner of property will be responsible t pay the pending balance.

Please check the docs.
Posted on: 07th May, 2009 08:58 pm
I think its not fair to pay the debt of your relatives, but if the deceased left behind money then I do think that it is reasonable that their debts be paid off after things like funeral arrangements are paid for.
Posted on: 07th May, 2009 09:28 pm
Hi ljohnstoy,

Are you on the loan? If you are not, then you are not legally bound to repay the loan. However, if you stop paying for the mortgage, the lender can foreclose on it. Thus, if you want to keep the propery you need to continue making the payments on the loan.
Posted on: 07th May, 2009 11:38 pm
One way or the other you will need to keep making payments to keep the property.

good news is, you need to make only the remaining payment.
Posted on: 08th May, 2009 08:16 pm
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