Q: Father and sister are joint owners, both in deed, but dad pays mortgage. What happens when he dies?
Does mortgage come out of his estate or us my sister responsible??
A: It depends on what the deed says, and who has actually lived in the property.
Sister owns house but house encumbered by mortgage. Depends upon will, but if she doesn't pay mortgage, the Estate is going to be embroiled in a Foreclosure battle, which no one wants. Here is a good article.
A: The mortgage is a security instrument entitling the holder to foreclose on said security interest in the property if the terms of a note (loan) are not paid. If your father is the only one on the mortgage and his estate stops paying then the bank can foreclose on his interest in the property, similarly if both of them are on the mortgage they both have to pay otherwise both of their interests can be foreclosed on. There are different types of joint ownership the two most common in this instance are "joint tenants with rights of survivorship" and tenants in common. If JTROS then when your father passes away your sister gets his 50% automatically and still has to pay the mortgage. If tenants in common then your dad's 50% interest (or whatever percent he may own) gets passed down to his estate (whatever it says in his will or if he dies without a will [intestate] then according to the succession laws in the state in which he passed away or where the property is located.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.