Posted on: 16th Dec, 2009 08:30 am
My father passed way recently. He held a mortgage on a townhouse that he had allowed my sister to live in. She moved out and it is now for sale. My father has an estate with investment, annuties etc but my questions is when someone passes away - all debts are supposed to paid before any money is dispersed to the heirs..must the mortgage need to be paid before monies are dispersed to heirs.. my sister and brother want to continue to pay the mortgage out just like he is alive, I say it was his debt and must be paid first before any body gets the remaining money.. my sister and brother don't want to pay it off and use the money to invest. and wait for it to sell before dealing with the mortgage..
Hi Elizabeth,
As your father is deceased now, his mortgage dues and other debts will be paid off from his estate. Then the property would be divided accordingly amongst the heirs. In case, if your siblings default the payments, then the lender would simply foreclose the property. They will not be able to negotiate for a repayment plan as the mortgage docs will show your father's name.
As your father is deceased now, his mortgage dues and other debts will be paid off from his estate. Then the property would be divided accordingly amongst the heirs. In case, if your siblings default the payments, then the lender would simply foreclose the property. They will not be able to negotiate for a repayment plan as the mortgage docs will show your father's name.