Posted on: 18th Mar, 2009 09:20 am
my dad has a living trust and i will inherit his home property down the road. it will have an outstanding mortgage on it. can i assume this mortgage, or would the lender prefer i refinance? if i just continue making payments on this loan after he's deceased, who then gets the credit for, and am i automatically responsible for the loan?
many thanks.
many thanks.
Hi JM,
The lender would prefer you to do a refinance and pay off the existing debt. After your dad is deceased you can continue making payments and the lender also would not mind as long as the payments are made regularly. But you won't get the credit for that. As you are not on the loan, you do not become automatically responsible for the loan. If you do not pay off the loan, the lender can foreclose on the property.
The lender would prefer you to do a refinance and pay off the existing debt. After your dad is deceased you can continue making payments and the lender also would not mind as long as the payments are made regularly. But you won't get the credit for that. As you are not on the loan, you do not become automatically responsible for the loan. If you do not pay off the loan, the lender can foreclose on the property.