Q: If a property with a mortgage on it is left to one person in the will, can that person takeover the mortgage as it is?
Interest only loan on property. By federal law 1982 lenders must allow inherited property owners to assume the mortgage?
A:
While there are provisions for FEDERALLY guaranteed loans that imply a death is not a 'trigger event' starting a due on sale, you still will need to QUALIFY to assume the mortgage or a revised mortgage based on the lenders underwriting guidelines.
This is a VERY complicated and technical area of law, and lenders frequently don't have the 'policies and procedures' readily available to the 'front line' people and you will receive incorrect information when you first contact many lenders.
If you want to do this, it is important to speak with your own attorney ASAP to set this up properly, and insure you can get to where you want to be. Even if 'probate' isn't necessary, you still need to approach the lender with the information necessary for them to structure the assumption or other refinance option.
Seek local legal help asap!
--This answer is offered for informational purposes only and does not constitute legal advice or create an attorney/client relationship. I am licensed to practice in Michigan only. Please seek competent local legal help if you feel you need legal advice!
A:
Oh, and indeed if there is an 'interest only' loan you may well want to NOT assume that loan! You're paying for something you will never own in that case! Again, seek local legal help!
--This answer is offered for informational purposes only and does not constitute legal advice or create an attorney/client relationship. I am licensed to practice in Michigan only. Please seek competent local legal help if you feel you need legal advice!
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