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Loren, Lawyer
Category: Real Estate Law
Satisfied Customers: 33505
Experience:  30 years of real estate practice experience.
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My mother died on Nov. 14, 2014. I got a quick claim deed

Customer Question

My mother died on Nov. 14, 2014. I got a quick claim deed for her house after her death. There was an existing second mortgage of about $55,000 left on the property. A lawyer friend suggested that I do not tell the mortgage company and just keep paying the monthly payment. I have paid the monthly payments without interruption. I also have been paying the monthly premiums for the home insurance. Recently, I received a letter from the insurance agency that states they will be cancelling the policy because the home is no longer owner-occupied. In the letter they indicated that they would be contacting the mortgage company about the policy cancellation. I am worried about what will happen next. I would have liked to take over the mortgage but was afraid that the mortgage company would not allow it. I was also afraid that I could not obtain financing to pay off the original mortgage. That is why I followed my friend’s suggestion. What would be the best way to handle this situation?
Submitted: 9 months ago.
Category: Real Estate Law
Expert:  Loren replied 9 months ago.
Good morning. I am Loren, a licnesed attorney, and I look forward to assisting you.
Expert:  Loren replied 9 months ago.
If you are not occupying the property then the lender, upon discovery of the death (or the cancellation of the insurance) will likely declare the loan due. If not repaid, they will foreclose.
Therefore, you are going to need to refinance in your own name to cash out the current lender (unless they agree to assign the current loan to you, which is not likely).
Expert:  Loren replied 9 months ago.
Find a mortgage broker. There are many lenders out there and it is very likely you will find a loan for which you can qualify.
Expert:  Loren replied 9 months ago.
The alternative is to move into the property and live there. Then, by federal law (Garn-St Germain) you can continue to pay the mortgage and the lender can not foreclose.
Expert:  Loren replied 9 months ago.
Did you have further questions?
Expert:  Loren replied 9 months ago.
Are you online with me?