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Title is named to beneficiary, mortgage is not

Posted on: 02nd Mar, 2009 08:02 pm
Hi,

I have a title to a property which was bequeathed to me by my late brother. However, the mortage is still in his name. The loan is in good standing as I am depositing payments into it. I am having a difficult time transferring the mortgage to myself because I do not live in the U.S. Can I sell the property? Do the banks care whose is the owner of the account if the house is sold?

Thanks
Hi corinnas,

Since there is a mortgage on the property, you cannot sell it without paying off the debt. If you really want to get rid of the house, you can ask the bank to arrange for a short sale or a deed in lieu of foreclosure. You need to talk to the bank in this regard.
Posted on: 02nd Mar, 2009 10:46 pm
jenkin7, yes i plan to pay the loan... when there is a sell transaction, won't the mortgage be paid? what i am trying to find out is that will there be an issue with the loan not being in my name (but the title is) when money is paid to the bank within the home selling/purchasing process. can they say "we cannot release the lien, you cannot pay us in full because you are not the loan account holder' or do they care who pays as long as the balance is paid.
Posted on: 03rd Mar, 2009 03:38 am
Hi corinnas,

That is not going to be an issue. The bank would not mind as long as the payments are being made. They don't care who pays the loan. The only thing they do care about is whether the payments are made regularly. Thus I think your decision to pay off the balance amount of the loan would be welcome by the bank.
Posted on: 03rd Mar, 2009 05:15 am
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