Posted on: 20th Sep, 2008 12:13 am
Hello, we are beginning to deal with the estate of our deceased father. He had properties in Hawaii, Oregon, Missouri and Washington. Most are highly leveraged or have little equity. A few are paid off but those are worth very little.
At the moment we are in limbo with mortgages payments now 2 month overdue and we are unable to pay with estate money because the executor has not yet been approved by the court. Likely we will have to use our own money to keep it afloat until then.
The eventual executor wants to quit claim or transfer property in probate with each heir taking responsibility for whatever debt the property received has attached. The property would be in the heir's name but the mortgage stay in our father's name.
Is this something the banks would accept? Can an heir refuse property quit claimed to them? How vulnerable to creditors would the other heirs be if one falls behind on payments? Can a property be refinanced by an heir?
Any thoughts are appreciated.
Thanks
Bryan
At the moment we are in limbo with mortgages payments now 2 month overdue and we are unable to pay with estate money because the executor has not yet been approved by the court. Likely we will have to use our own money to keep it afloat until then.
The eventual executor wants to quit claim or transfer property in probate with each heir taking responsibility for whatever debt the property received has attached. The property would be in the heir's name but the mortgage stay in our father's name.
Is this something the banks would accept? Can an heir refuse property quit claimed to them? How vulnerable to creditors would the other heirs be if one falls behind on payments? Can a property be refinanced by an heir?
Any thoughts are appreciated.
Thanks
Bryan
You need to consult with a probate attorney immediately.
Thanks jheard. We have talked to a probate attorney but he could not answer all these questions. I also have to convince the others to even hire an attorney. Just wondering if anyone can give us an idea. Thanks again...
hi bryan_craigslist!
welcome to forums!
i do not think that the bank will accept if the mortgage is in your father's name and the heir is someone else. they will ask you for a refinance. quitclaim doesn't mean that the mortgage is also transferred along with the property. to transfer the mortgage, you will have to go for refinance or novation.
feel free to ask if you have further queries.
sussane
welcome to forums!
i do not think that the bank will accept if the mortgage is in your father's name and the heir is someone else. they will ask you for a refinance. quitclaim doesn't mean that the mortgage is also transferred along with the property. to transfer the mortgage, you will have to go for refinance or novation.
feel free to ask if you have further queries.
sussane
Thanks, is this a "normal" refinance where we would have to qualify? Or some type of abbreviated refinance where the bank is happy to have someone/anyone take over the loan? Each heir would potentially be refinancing several mortgages and don't think the banks would accept us being so much in debt. A couple of the home have 2nd mortgages too. One has already filed a claim against the estate.
hi bryan_craigslist!
It has to be a normal refinance. But as there a number of other mortgages as you have mention, its better you consult a lender.
Thanks,
Jerry
It has to be a normal refinance. But as there a number of other mortgages as you have mention, its better you consult a lender.
Thanks,
Jerry