Q: Sister died owning mortgage on house we shared 35 yrs. I want to stay. I’m not on deed. What to do?
I am personal representative for her estate. If I have to qualify for mortgage in my name I am afraid I would not (bad credit). I have kept up the payments
A: I am sorry for your loss. If your sister passed away owning a home, the home, depending on how it's titled, has to go through probate. If you are the only sibling, no spouse, and none of your parents are alive and she didn't have any children, then you can rightfully inherit the house. However, you should transfer the home into your name by way of a deed. This is a cleaner way of doing things. As for the mortgage, the Garn-St. Germain Depository Institutions Act of 1982 prevents the mortgage company from interfering with the mortgage. You don't need to refinance the home. Just make sure you can handle the payments. Good luck and take care!
1 user found this answer helpful
A:
Once the time period for creditor claims has passed (6 months), the Personal Representative can file an account with the court and as soon as that is approved, deed the property to the heir(s).
Your post doesn't indicate whether or not there are other heirs, but once the estate is ready to disburse the Personal Representative files an account (or final report) showing how the estate assets will be given out and then does the deed. My firm regularly does these kinds of deeds, as do many other attorneys in this state.
If there are no creditors or other heirs who need to be paid off then a person inheriting property from a relative can lawfully "assume" the mortgage without need to formally refinance. As another attorney noted, this comes from a federal law that allows assumptions in certain cases.
In most cases the person inheriting the property (if they don't want to or can't refinance) would reach out to the existing lender and provide them with the death certificate and copy of the new deed out of the estate.
While not legal advice or a promise to represent, I hope that this helps!
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.