Mortgage after owner’s death
Terry my mother passed away June 15,, we own a two flat that was paid off but she took out a loan to pay for the home equity loan,,her name is on the loan not mine but I’m on the title and I’m going to continue paying the mortgage but how do I get my name put on the loan? Do I have to? after all the house is 100 percent mine in the will she left me 100 percent of everything and I am the executer
Terry Says
Yes, you should contact the bank and let them know that the house has passed to you, as part of changing title to the home into your name or your own revocable living trust. And yes, this will likely trigger the loan to be repaid fully. But the bank will likely to be helpful in extending the new home equity loan to you, although maybe at higher rates.
Or you can search elsewhere for a mortgage, especially if you plan to live there as your own residence. (If you’re planning to rent out the home, you’ll pay a higher rate, and have a bit more difficulty in getting the loan.)
Failure to timely change the ownership, and contact the bank will create other problems for you, so I suggest you approach this immediately.
