Q: My mom is going to pass soon. How does it work for Taking over her mortgage?

A: You probably can't, though you can always ask -- most mortgage companies and banks won't do assumption transactions on residential mortgages. (I'm assuming for these comments, that you are your mom's sole heir and sole beneficiary under any valid will or trust). If you have good credit and are willing to undertake a new loan, you may be able to pay off the existing mortgage and replace it with the new one along with the transfer of title to the property to you.

But first things first. If you are not already co-owner with your mom of the mortgaged property, you may have to open a new probate proceeding in order to transfer title to you. If your mother has a valid will or trust, the will or the trust instrument should control distribution of her assets. If not, her state's laws of intestate succession will probably determine distribution. But either way, you will likely take title to the mortgaged property subject to the mortgage. This means that the mortgagee can probably foreclose your beneficial or legal interest in the property and apply any sale proceeds (or credit, if the mortgagee buys it) to the debt.

If keeping the mortgaged property is not that important to you, you can probably sell it out of the probate proceeding and apply the sale proceeds to pay off the debt. If the sale proceeds are not sufficient, the deficiency (the debt remaining after applying the sale proceeds to the mortgage loan) will become an unsecured claim against the estate to be paid from other estate assets. You should not be personally liable for the mortgage debt (unless you were a co-borrower or guarantor or some unusual circumstance). You should consult local counsel in your state for specific advice about your situation. Many offer free initial consultations.

PS: My comments here are for general information only and are not legal advice about your specific situation nor do they create an attorney-client relationship with me. Consult an attorney in your state for specific advice about your circumstances and your particular issues.

A: You may need to refinance with the bank after she signs a quit-claim deed in your interest. Is there a will or trust? That is important. More details are necessary to provide a professional analysis of your issue. The best first step is an Initial Consultation with an Attorney. You can read more about me, my credentials, awards, honors, testimonials, and media appearances/ publications on my law practice website. I practice law in CA, NY, MA, and DC in the following areas of law: Business & Contracts, Criminal Defense, Divorce & Child Custody, and Education Law. This answer does not constitute legal advice; make any predictions, guarantees, or warranties; or create any Attorney-Client relationship.