Q: My son purchased a condo in August, 2008. He paid $240,000 and put down 20 percent in cash. Similar properties are now selling for about $200,000.
My son passed away in June leaving no will. After a period of 60 days, our county court signed over the titleTitle refers to the ownershipOwnership is the absolute right to use, enjoy, and dispose of property. You own it! of a particular piece of property. to me and my husband. The condo is rented out and we are making the mortgageA Mortgage is a document granting a lien on a home in exchange for financing granted by a lender. The mortgage is the means by which the lender secures the loan and has the ability to foreclose on the home. payments.
What are our options for putting the mortgage in our name without refinancing since we would have to put money into it to avoid paying mortgage insurance?
A: My condolences on the loss of your son.
Since you inherited the property from your son and since you’re family, the lenderA Lender is a person, company, corporation, or entity that lends money for the purchase of real estate. may not have the right to call the loanA Loan is an amount of money that is lent to a borrower, who agrees to repay it plus interestInterest is money charged for the use of borrowed funds. Usually expressed as an interest rate, it is the percentage of the total loan charged annually for the use of the funds.. in – that is to require you to pay back the loan. You may not need to do anything more than keep paying the loan and stay current. In some family situations when there is a death in the family, lenders may be required to allow the surviving members to keep the existing loan.
While you may want to have the loan in your name, you may not need to change anything to benefit from his loan. Talk to a real estateReal Estate is land and anything permanently attached to it, such as buildings and improvements. attorneyA Real Estate Attorney is an attorney who specializes in the purchase and sale of real estate. in your area to determine what your next step should be. At this pointA Point is one percent of a loan amount., having the loan in your son’s name may be better for you, particularly if the property is worth less than what is owed on the mortgage.
Given the current real estate market, the last thing another lender needs is a property owner that stops paying on another property and another possible foreclosureForeclosure is the legal action taken to extinguish a home owner's right and interest in a property, so that the property can be sold in a foreclosure sale to satisfy a debt..