Can you inherit a home if it's still under mortgage?
- 4 weeks agoBest answer
No. The home is in the ownership of the loan company. However you may be able to continue the payments by arrangement with the lender. Or they may repossess it and pay you a proportion when it is sold.
- babyboomer1001Lv 74 weeks ago
Yes, and you can keep up the payments too. If you don't, it will be foreclosed on, just as it would have been on the prior owner. However, some mortgages do not transfer. When the owner dies, the mortgage will be called due. If that is the case, you would have to pay the entire mortgage owing, if you want the house and not have it foreclosed on.
- Beverly SLv 74 weeks ago
Yes, but you must continue to pay the mortgage or it will be foreclosed on.
- 4 weeks ago
it depends on the country that you're into, if there's a law that states that if a person dies the inheritor will inherit the remaining mortgage. buts for some country they have insurance claims that will fill the remaining of the mortgage.Source(s): www.leadadvisors.net
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- R PLv 74 weeks ago
Yes, but the heirs must continue making the mortgage payments.
- 4 weeks ago
Yes, but the mortgage must be satisfied before it gets transferred into your name. IN other words, you have to take out your own mortgage to get that old paid off, or the estate has to pay it off.
- curtisports2Lv 74 weeks ago
In the US, you can under certain situations. A 1982 law allows relatives of the deceased borrower to assume the existing mortgage, taking title to the property and continuing to make the payments, and the lender cannot stop it. Otherwise, any time a borrower attempts to transfer ownership of the property without paying off the mortgage, the lender has the right to call the mortgage as immediately due and payable.
Of course, estate debts and other things come first. If the estate has debt that cannot be paid in cash or by the sale of other assets not including the home, and there is equity in the home, the home would have to be sold to pay the debt.
- 4 weeks ago
Lots of ifs. If you are in the US and if you are a spouse or direct heir and if you were named as beneficiary in the will and if the estate has enough other assets to pay its other debts then you will be able to inherit both the home and the mortgage without having to re-qualify under the Garn-St. Germain Depository Institutions Act of 1982.
However, if you do not earn enough to cover the mortgage and taxes, you will not keep it long. Might make sense to sell right away as you will get far less in a foreclosure.
- A.J.Lv 74 weeks ago
You can inherit it with the mortgage still in place, yes. If the home mortgages are higher than the home value, sometimes it can be turned down and passed to the lenders.
The mortgage typically does not become due in the USA as laws protect it. Reverse mortgages must be paid off on death I think.
- EvaLv 74 weeks ago
Yes, but you have to pay the mortgage if the estate did not have sufficient assets to pay it off. The bank may allow you to assume the mortgage in this instance, but they may require you to refinance.