Sykesville, MD asked in Bankruptcy for Pennsylvania

Q: My father filed bankruptcy about 7 years ago. He had a home and a step grandson’s name was on the deed. Dad died 3.5

3.5 years ago. No will. I was POA. The above person, J... has been living there and paying mortgage. I have no problem with that and bank said it could continue that way. Now J.. wants to refinance and the bank says that me and my brothers have to do a quit claim deed to relinquish our rights. What rights? I thought the bank owned the place now. We were never on the deed, and all of us live out of state. Something seems off to me.

Related Topics:
1 Lawyer Answer

W. J. Winterstein Jr.

PREMIUM
Answered
  • Bankruptcy Lawyer
  • Boyertown, PA
  • Licensed in Pennsylvania

A: When a person dies intestate, his property owned at the time of death passes to his legal heirs, i.e., those heirs defined by the intestacy statute in the state of the decedent's domicile. In almost all states, the children of the deceased, and wife, are the designated heirs. A grandchild is not normally named as a direct heir in the statutes. Assuming MD's intestacy statute provides that the children (and wife, if he is married and she survives him) of a decedent automatically become owners of the decedent's property. In this case, there probably should have been a probate in court (because of the real property), but it would be normal and advisable, at least for a new lender, to ensure that the stepgrandson has legal title, so that a Mortgage signed by him in favor of the refinancing lender will be valid. Not sure why you would think that the bank owned the property, unless there was a foreclosure and the bank bought the property at the foreclosure sale.

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.