Posted on: 16th Feb, 2007 09:47 am
my dad passed away mortgage was in his name only. what happens now to the mortgage. can my mom continue making monthly payments
Sorry to hear about the death of your father.
If your mother now owns the property as per your father's will then she will have to pay off the mortgage or have it refinanced in her name.
If your mother now owns the property as per your father's will then she will have to pay off the mortgage or have it refinanced in her name.
Yes, she can continue making the payments. If her name is on the title, then she should pay off the loan in order to retain the title with her. Otherwise, the lender may wish to take away the property through foreclosure, sell it off and retrieve the amount of the unpaid balance.
Your mom should contact the lender and tell him that she is interested in making payments.
Thanks,
James.
Your mom should contact the lender and tell him that she is interested in making payments.
Thanks,
James.
Marie,
Most likely the note or deed of trust currently in place with the existing loan states that upon your father's death the note could come "due". The lender made a decision to loan money to your dad under assumptions he could repay the loan. Therefore they have a provision that says if he passes away the balance on the note comes due.
Now you could have your mom keep paying on the note and see if the lender figures out something happened to your dad. It's a less deliberate approach but if the current note has interest rates far below current rates I would advise my mom to try that.
If the lender calls or you want to be proactive and call them, ask for an assignment of mortgage. See if they will allow your mom to be added to the current note.
If the current note is at a higher rate of interest OR the monthly payments are just too great for her to handle, then refinancing is probably your best option. Even if the current rate is low at like 5% but the monthly payments are too much, your mom may NEED to refinance to a new 30 year loan in order to keep her payments affordable.
I hope this information helps...
Most likely the note or deed of trust currently in place with the existing loan states that upon your father's death the note could come "due". The lender made a decision to loan money to your dad under assumptions he could repay the loan. Therefore they have a provision that says if he passes away the balance on the note comes due.
Now you could have your mom keep paying on the note and see if the lender figures out something happened to your dad. It's a less deliberate approach but if the current note has interest rates far below current rates I would advise my mom to try that.
If the lender calls or you want to be proactive and call them, ask for an assignment of mortgage. See if they will allow your mom to be added to the current note.
If the current note is at a higher rate of interest OR the monthly payments are just too great for her to handle, then refinancing is probably your best option. Even if the current rate is low at like 5% but the monthly payments are too much, your mom may NEED to refinance to a new 30 year loan in order to keep her payments affordable.
I hope this information helps...
