Help with taking over a mortgage - Posted by Nikki

Posted by Randy (SD) on March 28, 2006 at 13:57:07:

Well again, I’m not an attorney and I would suggest you contact one. The fact she had a will is good however it does not automatically give you ownership, the transfer of deed is a legal process that can only be accomplished by probate. Regarding your employment and rather you would qualify for a mortgage, contact and mortgage lender or broker. Just like any other home buying experience all you can do is try, my main emphasis was and is there is no immediate rush…

You might also consider talking to the existing mortgage lender, there are specific provisions in the Garn - St. Germain Act that prohibit the lender from taking any adverse actions, there may be some incentive for them to restructure the loan you might be able to get a lower interest rate and because it would be a “in-house” closing, closing costs could be significantly less…good luck

Help with taking over a mortgage - Posted by Nikki

Posted by Nikki on March 28, 2006 at 13:13:41:

Hi guys,
My mom passed away unexpectedly this last month, leaving my 19 year old sister and I alone with the house. I just finished college last week and have yet to find a full time job. I am just curious as to what you all think I should do. We have 16 years left on our mortgage, with monthly payments at $1500. The loan’s rate is 8.500%. This payment is really tough to handle on our own. Also, our house needs a lot of work done, such as the floors, carpets, one bathroom and kitchen are all unfinished from a remodel we had going before my mom fell ill. Any advice regarding refinancing or any advice period would really help me out. This house was really special to my mom and I would hate to have to sell it, I’d like to try anything to keep it. Thanks so much!

Re: Help with taking over a mortgage - Posted by Bou

Posted by Bou on March 28, 2006 at 14:28:03:

Sorry for your loss. I couldn’t imagine what you’re going through right now.

It is best that you need seek professional advice before enacting on any of our advice or opinions posted here. Consequences from a bad decision can cost you dearly. Assuming that you can qualify for any of these, you can do a HELOC or a cash-out refi. A HELOC will give you access to cash to help you with your bills, expenses, etc. for the short term while you’re still looking for a job. A refi will reduce your interest rate, thus lowering your mortgage payment, and allows you to take out cash at closing. Both can be very dangerous if it is not used properly. Just be careful.

I Wouldn’t Do Anything yet… - Posted by Randy (SD)

Posted by Randy (SD) on March 28, 2006 at 13:39:04:

First of all, sorry for your loss. I know it is quite devastating to lose your mother and sometimes we have this inherent drive to finish “unfinished business” however in this case you may not be in a position to do so.

Did your mother have a will? Have you spoken with an attorney regarding property ownership and the settling her estate? The problem is, if you were not on the title (the house was in her name only) you have no legal right of ownership without probate action, the owner (your mother) is deceased only a court can transfer legal ownership to you and your sister.

The second concern is you are not in a position to refinance or even assume the existing mortgage as most lenders will not consider giving you a loan without at least six months employment history. The existing lender will not (in most cases) take any action due to the death of your mother, in other words thier not going to call the mortgage due. I would suggest you do your best to keep the payments current, find a job, check the legal status regarding probate and give it some time…

Re: I Wouldn’t Do Anything yet… - Posted by Adam-MI

Posted by Adam-MI on March 28, 2006 at 13:57:14:

That is not always the case. I graduated college, got a job offer, and immediately applied for a mortgage at my local credit union. I got the mortgage (only ~100K, but still…) and moved into the house within a month of starting the job. Not that this is the norm, but it definitely happens.

Re: I Wouldn’t Do Anything yet… - Posted by Nikki

Posted by Nikki on March 28, 2006 at 13:42:31:

Thanks for the advice. My mom did have a will which gives me the house. And although I am not working full time, I have been working close to a year at the same company at 30 hours a week. Does that change anything? I really appreciate your help, I’m completely confused about this stuff.

Re: I Wouldn’t Do Anything yet… - Posted by dutch

Posted by dutch on March 28, 2006 at 16:04:17:

Check to make sure she didn’t have credit life. If she did, the house would be paid for. Some lenders have this and “forget” to tell the heirs.