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What happens to home if quit claim grantor passes away before grantee can refinance mortgage loan?

Posted on: 19th Oct, 2008 10:10 pm
My father in law quit claimed the house to my husband however he passed away before my husband was able to have the loan financed in his name. Now we are finding that he may not qualify for the loan. How does the mortgage company collect on the loan? We have found out the current assessed value is lower than the amount currently owned. Can the mortgage company go after other assets in the estate for the balance owed? Will they forclose automatically or try to collect from other assets first? This unfortunately was a quick illness and there was no time for any kind of preparation.
Hi messybird!

Yes, the mortgage company may foreclose the property and can also place liens on other properties that you own. You can check with the mortgage company if they are able to give you a repayment plan. Or if that is not possible, you may request for a deed in lieu foreclosure or a short sale.

Thanks.
Posted on: 19th Oct, 2008 11:11 pm
Hi messybird!

It will be better if you could consult the lender and tell him/her about the whole situation. May be the lender will consider your case and give some easy plan to pay off the mortgage.

Thanks.
Posted on: 21st Oct, 2008 03:25 am
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