Cape Coral, FL asked in Real Estate Law and Probate for Florida

Q: Is a mortgage with a beneficiaries' property automatically assumed by beneficiary

AS PR, do I have to get assignments to distribute commercial property with mortgages, or does the mortgage go with property automatically?

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1 Lawyer Answer
James Clifton
James Clifton
  • Probate Lawyer
  • Fayetteville, GA
  • Licensed in Florida

A: If the mortgage is in the name of the deceased, it is actually a debt of the estate that should be paid by the estate. If the debt cannot be paid by the estate the property should be sold or if a beneficiary chooses to receive the property subject to the mortgage, the beneficiary should be required to refinance the property to remove the debt from the estate. If not, a deficiency judgment in the event of foreclosure in the future could complicate the estate matters and create a headache for you as the personal representative. The beneficiaries of the estate are not personally liable for the mortgage in the name of the deceased when it passes to them. However, the monthly mortgage payments need to be made to avoid foreclosure. Schedule a free consultation to make sure all of the details are covered, as it may get complicated.

Terrence H Thorgaard agrees with this answer

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