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I have a question. Let's say that someone inherited a house (in North Carolina) from a dead parent that still had a mortgage associated with it, and after the estate was settled, that person had his name put on the deed. Let's also assume that the mortgage company was making it difficult for this individual to put the mortgage in his name. Legally speaking, can he sell the house without notifying the mortgage company and keep the entire amount that it sold for? I'm curious because it sounds like the father gave the son a gift while taking on all the debt himself, and now that he's dead, shouldn't his debts die too? Any comments and/or insights would be greatly appreciated. Thanks.
I'm highly surprised that the estate could be settled without paying off the mortgage. Normally the mortgage holder would come after the estate for payment in full.
... the mortgage company was making it difficult for this individual to put the mortgage in his name. Legally speaking, can he sell the house without notifying the mortgage company and keep the entire amount that it sold for?
No lender will change the name of someone on the mortgage. You have to get your own loan and finance the property in your name. There is no such thing as a "name change" when it comes to mortgages.
There is a lien on the property, so no, you cannot sell a house and keep the funds as there won't be clear title to pass the property to the person buying it.
No lender will change the name of someone on the mortgage. You have to get your own loan and finance the property in your name. There is no such thing as a "name change" when it comes to mortgages...
If someone inherits a house (that has a mortgage associated with it) from a close family member, wouldn't the "Garn-St. Germain Depository Institutions Act of 1982" allow the individual to assume the deceased family member's mortgage? If so, wouldn't that in effect change the name on the mortgage?
Its more complicated than this but........When someone buys real estate, a title search is done to find old mortgages. No bank would allow someone to buy a property without paying off the old mortgage. So no, you cant sell a house and not pay off the mortgage. Its a debt secured by a house. Dont pay it? The bank takes the house.
If someone inherits a house (that has a mortgage associated with it) from a close family member, wouldn't the "Garn-St. Germain Depository Institutions Act of 1982" allow the individual to assume the deceased family member's mortgage? If so, wouldn't that in effect change the name on the mortgage?
If the person who inherited the house is going to live in the house, the mortgage holder can't enforce a "due on sale" clause. That's technically different than changing the name on the mortgage, but so long as payments are kept up it shouldn't be a problem. If the estate had other assets, however, why wasn't the mortgage paid off?
If someone inherits a house (that has a mortgage associated with it) from a close family member, wouldn't the "Garn-St. Germain Depository Institutions Act of 1982" allow the individual to assume the deceased family member's mortgage? If so, wouldn't that in effect change the name on the mortgage?
No. I suspect you're confused by the part of this Act that allows a homeowner to put the home into a trust (typically, a living trust) and not start the due on sale clause of a mortgage.
Assuming this is your dead father and your inheritance, I strongly suggest you stop playing amateur attorney and consult the probate attorney and/or executor of the estate. And uf dad is stikk brwathing, I'd suggest you stop counting your chickens before they've hatched.
Its more complicated than this but........When someone buys real estate, a title search is done to find old mortgages. No bank would allow someone to buy a property without paying off the old mortgage. So no, you cant sell a house and not pay off the mortgage. Its a debt secured by a house. Dont pay it? The bank takes the house.
If the person who inherited the house is going to live in the house, the mortgage holder can't enforce a "due on sale" clause. That's technically different than changing the name on the mortgage, but so long as payments are kept up it shouldn't be a problem. If the estate had other assets, however, why wasn't the mortgage paid off?
I don't know why the mortgage wasn't paid off. It wasn't my father. I was just asking on behalf of a friend.
With that being said, your response was helpful too. I really appreciate it.
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