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LawTalk
LawTalk, Attorney
Category: Real Estate Law
Satisfied Customers: 36351
Experience:  I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
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I am a senior on SS & SSI. According to my Identy Guard

Customer Question

I am a senior on SS & SSI. According to my Identy Guard credit scores they are 817,816,816. I make less yhan $1000.00 per month. I am living in a home that was left to me in a trust after my father died, Dec 2013. While he was alive the house was paid off until in 2009? he borrowed from BofA $60,000.00. It was used to reroof the home, replace the rotten rear deck, and pay off his vehicle. We make a $224.00 payment every 2 weeks on a 15 year note. The balance is appx. 37,000.00. My father suffered a debilitating stroke in April 2011. I took care of him until his death. I paid all his bills and represented him with a POA. Ihave continued to pay the mortage payments without flaw since. I never told BofA of his passing. Last Saturday the acct. that BofA draws from automatically every 2 weeks was hacked, then sealed by my bank (WF) to protect me. I now have a new acct. # ***** does not match the one BofA knows. I plan to continue the payments until I sell the house. On time and in full. I also pay and annual association fee of $2000.00+ and annual taxes of over $3700.00. All payments are current and have never been late. I have lived here for 23 years. The trust names me trustee and stipulates I can live here as long as I maintain the bills. If I abandon, fall behind the house is to be sold and the proceeds be split between my step-sister and myself. My plan was to put the house up next spring and sell it, split with my sister and move on with my life. Paying off the loan and any expenses associated. What can I do? I don't think I would qualify for the loan, and any additional costs would be near impossible to cover for me. Will the bank call the loan? Is there anyway to continue to pay until sale and payoff. The home is unencumbered. My father bought the home in 1985. HELP!!!!!
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Maverick replied 1 year ago.

Will the bank call the loan?

Yes, that can happen if you fall behind on the payments.

Is there anyway to continue to pay until sale and payoff.

Are you able to rent out part of it or borrow money from your step-sister since she would get half of the equity when sold?

Customer: replied 1 year ago.
I am never behind on any paymentsMy sister is only able to sustain her life.
Expert:  Maverick replied 1 year ago.

Well then there should be no problem. The bank really does not care who pays the loan as long as it gets paid. So, if you can afford the payments until time of sale keep going with them...

If this answers your question, please assign a feedback rating so JA will compensate me for my time.

If you are not satisfied with the answer, I would appreciate knowing why so that I can try to clear up any misunderstanding that may have taken place.

You may request me in the future on new and unrelated questions by beginning the question with "THIS IS FOR MAVERICK".

Thank you for using Just Answer.

Customer: replied 1 year ago.
Iwas hoping for some new ideas. Nothing you have said has helped, I already knew all that you have offered. This was NO help!
Expert:  Maverick replied 1 year ago.

No problem. I will just release your question back to the general pool of experts and see if another person can assist you. You deposit is still in tact and you need not do anything.

Expert:  LawTalk replied 1 year ago.

Good afternoon,

New Professional here. I'm Doug, and I'm very sorry to hear of your situation. My goal is to provide you with excellent service today.

Based on the facts that you have provided, no, the bank may not legally call the loan or force a foreclosure merely based on the death of your father.

Present federal law requires that when a property owner dies, if that property remains in a trust for an heir of the deceased and if that heir uses the property as their primary residence, then so long as the mortgage is paid and the taxes and insurance are kept up, that the lender may not seek foreclosure of the property.

So long as you are living in the property and the mortgage is kept up, you will legally be allowed to continue to live in the home and pay the mortgage just as if your father were still living.

Here is a link to the law, known as the Garn-St. Germain Depository Institutions Act of 1982, which allows you to keep the property and the existing mortgage: https://www.law.cornell.edu/uscode/text/12/1701j-3

You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.

Please remember to rate my service to you so that I can be compensated for helping you. Thank you in advance.

I wish you and yours the best in 2015,

Doug

Expert:  LawTalk replied 1 year ago.

And here is a brief article explaining this right you have under the Garn-St. Germain Depository Institutions Act of 1982:

http://www.njelderlawestateplanning.com/2011/11/articles/estate-planning/what-happens-to-the-mortgage-when-property-is-transferred-to-beneficiaries-at-death/

You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.

Kindly, remember to rate my service to you. That is how I am credited for assisting you.

I wish you and yours the best in 2015,

Doug

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