Posted on: 29th Jul, 2008 09:20 am
when a person dies and has a mortgage, and one of the children takes over the mortgage, are they still obligated to continue paying
Only if they don't want the property to go into foreclosure.
What would be the consequences if the property goes into foreclosure? Any legal or tax consequences for the executor or family member who inherit?
Welcome Guest,
If a property goes into foreclosure, the credit score of the person who has taken the mortgage will be badly affected. His or her credit score will be badly affected.
In case of foreclosure, the lender may ask you to pay the deficient amount resulting from the sale or else it may also place liens on your other property. Cancellation of debt income is not taxable in the case of non-recourse loans. There can be a reportable gain from the home because of foreclosures as foreclosures are treated like sales while calculating taxes. In some cases, some or all of the gain from the sale of a personal residence are not considered as income.
If a property goes into foreclosure, the credit score of the person who has taken the mortgage will be badly affected. His or her credit score will be badly affected.
In case of foreclosure, the lender may ask you to pay the deficient amount resulting from the sale or else it may also place liens on your other property. Cancellation of debt income is not taxable in the case of non-recourse loans. There can be a reportable gain from the home because of foreclosures as foreclosures are treated like sales while calculating taxes. In some cases, some or all of the gain from the sale of a personal residence are not considered as income.