Q: My sister is in my mom's will to inherit the house. Can the bank take the house from her to pay off the mortgage?
My mother lives in Ohio and her will says that all debts should be paid on her death. Does this mean paying off the mortgage before my sister can have it?
A: Your sister will inherit the house subject to the mortgage. The mortgage accelerates upon the death of your mother, so the entire balance will be due. If your sister doesn't want the bank to foreclose on the mortgage, she will need to find a way to pay off the mortgage.
Mary Ellen Leslie agrees with this answer
A:
If your sister intends to move into the house and make it her primary residence, then she is entitled by law to assume the mortgage. The law I am referring to is called the Garn-St. Germain Act of 1982 and is found here: https://www.law.cornell.edu/uscode/text/12/1701j-3
The relevant subsection is (d)(3).
The law provides an exception to the usual "due on sale" clause, which would normally accelerate the mortgage and cause it to be immediately payable.
The law provides relief to families who need the house to live in, but may not be able to refinance, etc.
1 user found this answer helpful
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