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What happens when the sole owner of a house with an upside down mortgage dies and there is a trust with heirs?
Wiki User
∙ 14y ago
Generally, either the mortgage must be paid or the bank will take possession of the property, sell it, and after deducting the balance due on the loan and all the associated costs and expenses will pay over any balance remaining from the sale to the estate. However, you should review any documents associated with the reverse mortgage for the terms of that transaction.
Wiki User
∙ 14y ago
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Can you get a joint mortgage with your grandparent and what happens if she dies can i keep the house and mortgage?
The type of deed will determine what happens to the property after her death. If there is a right of survivorship, you will get the house. The mortgage company determines whether you keep the mortgage or have to refinance.
Your parents died leaving a mortgage on the heir property are the heirs obligated to pay the balance of the mortgage?
Yes. If you inherit a piece of property, including a house with a mortgage, you are legally obligated to pay its bills.
If a person left a house in a will with a mortgage payment what happens with the mortgage?
The mortgage has to be resolved. Either it must be sold and the mortgage paid off, or the person inheriting obtains a replacement mortgage.
If your husband has a reverse mortgage and you are not 62 what happens to you with the house if he dies?
The answer is when he dies the reverse mortgage company will settle up the loan, so you will have to either sell the house or refinance with a new mortgage.
What happens to the mortgage on a house if the house is deeded to a new owner?
The property cannot be conveyed without the permission of the mortgage holder, who will most likely insist that the mortgage be paid off first. In other words, this is kind of a non-question, since it describes a situation that can't legally happen.If the mortgage holder dies, the house becomes part of the estate, and the heirs would have to work it out with the mortgage company.AnswerIf the owner executes a deed the property would transfer subject to the mortgage. Transferring the property cannot defeat the mortgagees interest in the property. Also, mortgages contain a due on transfer clause. That means if the property is transferred the lender will require payment in full of the mortgage.
What happens when you die and leave a mortgaged house to someone?
They now have a house with a mortgage on it. If they cannot, or do not wish to, pay the mortgage, they will have to sell the house, pay off the mortgage, and keep the remainder of the money. The mortgage holder may require you to get a new mortgage on the property, rather than assume the existing loan. You are essentially leaving them what ever value you own of the house.
When someone dies what happens to the mortgage loan?
It is normal for people with a mortgage loan to have a life insurance to cover the amount of the loan. If this is the case the insurance will pay off the loan and the property will become part of the dead persons estate in its entirety and (after inheritance tax) the heirs will inherit it. If there is no insurance then the outstanding balance of the mortgage becomes a charge on the estate of the deceased and if there is not enough money available to pay this, then the house will have to be sold to realise this money. If after the sale of the house the estate is still short of funds to cover the mortgage (after funeral expenses are met) then the mortgage company will have to take that loss.
If your mother dies without a will and owns a house with a debt what happens?
If she had insurance to cover the balance owed, then the debt could be eliminated and the Probate judge will consider ownership according to remaining heirs- husband and children. If she did not leave money to pay the balance, the mortgage holder may or may not allow you to assume the loan, depending on your personal credit record. The mortgage company may exercise an option to repossess the property if the heirs can not pay off the remaining note.
What happens when a borrower doesn't pay back a mortgage loan?
The lender can foreclose the mortgage and sell the house to recoup its losses. You would lose the house. Your credit rating will plummet.
What is house under water in real estate terms?
That would be property where more is owed on the mortgage than the value of the property. The term upside down is also used in that sense.That would be property where more is owed on the mortgage than the value of the property. The term upside down is also used in that sense.That would be property where more is owed on the mortgage than the value of the property. The term upside down is also used in that sense.That would be property where more is owed on the mortgage than the value of the property. The term upside down is also used in that sense.
What happens if someone pays their first mortgage but not their second?
The mortgage companies will end up fighting over the proceeds when your house is sold after foreclosure.
What happens when you pay off your house?
You own it and no longer need to pay a mortgage. You get the deed to the house and are free to do whatever you want to.
