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What does it mean at the end of a mortgage agreement that the note and mortgage shall be satisfied upon the death of the mortgagor?
Wiki User
∙ 9y ago
It is difficult to translate that clause without reading the entire section . Generally, a note and mortgage must be paid off upon the death of the mortgagor. If the heirs want to keep the property then they must pay off the mortgage. If they cannot or decide not to then the mortgagee will take possession of the property by foreclosure. Some lenders allow the heirs to assume the debt as long as it does not go into default.
Wiki User
∙ 9y ago
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Can you get a reverse mortgage after getting a home equity loan?
Generally, no. The lender in a reverse mortgage wants to be able to obtain clear title to the home upon the death of the mortgagor or if the mortgagor defaults on the terms. It does not want to be in second place regarding another lien.
What is the meaning of the word mortgage?
I believe Mort is a French word meaning "death" and gage means "pledge or agreement" So the meaning of the work Mortgage is an "agreement till death."
Who is responsible for mortgage debt after death?
The mortgage debt is the responsibility of the estate. The mortgage will have to be satisfied before the estate can be closed. Before anything in the estate can be distributed, the debts have to be cleared.
Is private mortgage insurance the same as homeowners insurance?
They are not the same. Homeowner's insurance insures the property: dwelling, personal property, other structures on the property, etc. Private mortgage insurance pays the mortgage in case of the death or disability of the mortgagor.
Your mom passed away 6 mos ago how can you find out if there was an death clause on her home the amount that is left is 8000.00?
You can read the recorded mortgage document at the land records office. The staff could help you to locate the recorded mortgage under your mother's name. You would be looking for a "due on death" clause that requires the mortgage be paid in full upon the death of the mortgagor. Generally, there is also a clause that requires the mortgage to be paid in full if there is any change in ownership which would include the change caused by the death of the mortgagor. You could just keep making the payments. That would work out the best if you had a joint checking account with your mother. You could keep making the mortgage payments by using that account. Keep in mind that if the property was solely in your mother's name then the estate must be probated for title to pass to the heirs. In that case notice of your mother's death must be published and the bank may discover that your mother has died and demand payment. If that happens perhaps you could negotiate a refinance of the balance due.
When a person dies with reverse mortgage can their children take over if 62 or older?
Generally, they would need to pay off the lender to redeem the property. The lender's object in a reverse mortgage is to obtain title to the property upon the death of the mortgagor not to allow the family to benefit from the original transaction indefinitely. You should discuss the matter with the lender.
What paper work do you do when a person wants to have another person take over payments on her house and transfer the title until its paid for?
You will need to make contact with the mortgage holder (people that loaned money to buy the house) and get their approval. Until the loan is paid off, the mortgage agreement is between the homeowner and the mortgage holder. That agreement cannot be changed without their approval, or a court order (such as bankruptcy) or the death of the borrower. In effect, you would transferring your mortgage to the other person- and that person might not be acceptable to the mortgage company.
Is a probate proceeding following death of mortgagor a transfer under the due on sale clause?
Probably. The secured lender will either want to be paid off by the estate, or obtain a novation of the promissory note by the heir who is the new owner of record (and a new mortgage), or foreclose against the estate.
What happens to the mortgage on your parents home when they die?
The mortgage must be paid or the lender will take possession of the property by foreclosure. If you want to keep the property then you must make arrangements to pay the mortgage. Some mortgages allow assumption by a family member after the death of the original mortgagor. In the case of real property the parent's estate must be probated in order for title to the property to pass to the heirs legally. You should consult with an attorney who specializes in probate law in your area.
What happens if the person filing for foreclosure dies?
A person doesn't "file for foreclosure". A bank or other lender takes possession of property by foreclosure procedure after the owner (mortgagor) of the property has defaulted on the mortgage. The procedure varies in different states. If the mortgagor dies during the foreclosure proceeding the lender can continue the foreclosure process against the estate. The death of the mortgagor may delay the proceedings until the heirs have been given notice of the foreclosure, depending on how far along the foreclosure has progressed. If the mortgagee (lender) dies during the foreclosure proceeding their estate representative can continue the foreclosure once appointed by the court.
What is the meaning of the term mortgage?
United StatesA mortgage is commonly understood to be a loan secured by real estate.The more formal definition in a title theory state is as follows:A mortgage is an instrument used to convey title to real estate that is given as security for payment of a debt or the performance of a duty. (A mortgage is the instrument the borrower signs to pledge their real property and make it subject to the loan.)The conveyance of title, although conditional, is the operational factor. The lender holds the legal title but the borrower has possession as long as they meet the terms of the loan. The mortgagor has the legal right to have the mortgage released upon the payment of the debt or fulfillment of the performance according to the stipulated terms. The mortgage must be recorded in the land records and constitutes an encumbrance on the title until the loan is paid and the mortgage is discharged by the mortgagee of record.Contrast the operation of a mortgage in a lien theory state. The more formal definition is as follows:A lien against property that is granted to secure a debt or obligation that is extinguished upon the payment or performance according to the stipulated terms. (Title remains with the mortgagor.)Some states use elements of both and some states use the deed of trust system which is not addressed here.
Mortgage is in your name spouse dies will mortgage life insurance pay off house?
If the mortgage is in your name it would not be affected by the death of your spouse. Mortgage life insurance is coverage that is taken out so that your house would be paid for in the event of your death.
