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Back in 2002 my father deeded my home to me (life estate, my daughter remainder interest) and kept the original mortgage in his name since my credit was poor. My daughter and I have always made the monthly mortgage payments.
I would like to obtain a mortgage in my name (leaving the deed as it is currently). I now have a steady income (Social Security) so I feel I would qualify. We have paid the current mortgage down and would only need to finance $30,000 which would result in much lower monthly payments.
He died in 2007 and his estate is closed. My sister was the executor of his estate and she has refused to speak to me since before his death because of personal issues not related to my home.
Any advice on how to go about obtaining a new mortgage without upsetting the current lender and possibly causing them to activate the due on transfer clause would be greatly appreciated.
I'm not an attorney, but something seems off here. When an estate is closed that typically means all debts are paid and all assets are distributed. How can the estate be closed if there is still a mortgage in the name of the deceased?
For a mere $30k loan, you're going to have to go to a small credit union or local bank. That's a very small loan for a mortgage, and they might need you to just do a personal loan instead of a mortgage loan. The current lender doesn't know what's going on until you pay off the mortgage, so don't worry about them. As long as payments are being made, they could probably care less about the due on transfer clause.
I'm not an attorney, but something seems off here. When an estate is closed that typically means all debts are paid and all assets are distributed. How can the estate be closed if there is still a mortgage in the name of the deceased?
The payments have always been made and the deed is not in his name. Apparently my sister did not list it in the estate or the bank chose not to accelerate the note because payments are always made and the property is not in his name.
Why would obtaining a new mortgage upset the current lender?
If you refinance you will be paying off the current mortgage.
Honestly though, with only $30,000 left, it might not be that easy to refinance.
It might upset the lender because the property was transferred without their knowledge and they might accelerate the note and enforce the due on transfer clause.
For a mere $30k loan, you're going to have to go to a small credit union or local bank. That's a very small loan for a mortgage, and they might need you to just do a personal loan instead of a mortgage loan. The current lender doesn't know what's going on until you pay off the mortgage, so don't worry about them. As long as payments are being made, they could probably care less about the due on transfer clause.
Thank you. What you said makes sense. I'm going to try my local credit union. I think when my sister closed his estate she probably notified the lender and they decided not to accelerate the note because payments were always made.
It might upset the lender because the property was transferred without their knowledge and they might accelerate the note and enforce the due on transfer clause.
Again though, if you refinance with another lender then you are already going to be paying it off, whether they claim it is due or not.
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