Q: I am in RI. My siblings and I inherited a house from my brother when he died. There is a mortgage on the house.
One of my brothers is considering buying the house. We will naturally charge him a lot less than the appraised price. Does the mortgage go with the house or are we responsible for paying it off before we sell it to him?
A: First a determination of who are the titled owners should be made. If the Mortgage is not satisfied and released, the brother takes the improved real property subject to the Mortgage. Apparently none of you all are personally liable on the Note, but if not paid, Foreclosure occurs. Remember taxes and insurance also have to be paid, or Mortgage Default also occurs. Hire a competent RI attorney to draft the Deed with a proper Derivation of Title Clause.
A: Yes, the mortgage goes with the house. He needs to get a mortgage to pay off the existing mortgage plus whatever additional value you and he decide upon as part of your purchase price. And, whoever of you is living at the house now ought to pay the mortgage and insurance for the time being.
Neville Bedford agrees with this answer
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.
