Title Issues Cloud Estate
Step-daughter wonders why lender failed to add her to title and what she can do now
Q: Early last year, my stepmom and I had a meeting with her loan company to figure out what the easiest way to pass her home to me when she died. I know nothing about this stuff so I put my trust in the loan servicer.
The lender suggested that I assume the loan and added me as a co-borrower. She said that once my stepmom died, all I’d have to do is send in an affidavit of her death and I’d become the owner of the home.
My stepmom suddenly died last summer and I called the lender. They told me there was no need for probate as long as I did this assumption of the loan. The lender said they would take care of this for me. I was told that I needed to do was to pay the back taxes owed and the homeowner’s insurance. After, they’d add me to the title.
In the meantime, my stepsister got involved and contacted the lender and told them she was in charge. She’s been trying to kick me out of the house for some time. So, the servicer sent me a letter requesting that I prove to them that I had the authority to administer my stepmom’s estate and my stepsister posted a sixty-day notice to evict me from the home.
Why didn’t the servicer put me on title when she said she would? What should I do now?
A: Let’s take a step back. Do you know the actual status of the title? Did you get anything from the lender after the change was made to the title? Typically, your step-mother would have had to sign something, unless you received a share in the property after your father died.
Have you looked at the title to see how it is being held? Pay a visit to your local recorder of deeds to check out the history of the property. You may also be able to see this information online in some jurisdictions, as it is public information. In other places, the only way to see this information is in person.
If the lender had a document drafted to put you on the title to the home in accordance with your step-mother’s wishes, it should be reflected in the property’s title. But if it isn’t listed there, then the lender never followed through with the plan. Or, the lender sent some documents to your step-mother to sign and she never signed or returned them.
If the lender actually added you to the title of the home, you would then be able to see your name on a document showing that your step-mom transferred some of the interest she owned in the home to you. If that’s the case, your step-sister shouldn’t be able to evict you from the property.
If you have been living in the home and paying expenses to own and maintain the property, gather up your records. If your step-sister evicts you from the property you may be able to file a claim against your mom’s estate for all or a portion of the payments you have made for the upkeep of the home.. After the home sells, you’d at least get back the cash you’ve spent for this property.
The most important thing you can do now is to find out whether you were actually added as a co-owner of the property. If you were, and you were added as joint tenants with rights of survivorship, then you would own the property once the estate is settled. If you were added as a tenant in common, then you and your late step-mother owned your respective shares of the property, and her estate would be able to sell her share of the property (but not yours). You could potentially purchase the other part of the property you don’t own.
If your name was never added, and you aren’t living in the house, you are likely out of luck. Keep in mind that your question deals with two different issues:
- The issue of becoming part-owner of the home with your mom
- You assuming the debt — the mortgage on the home
The lender might have been talking to you only about the debt and not about the ownership of the home. Remember, the lender only cares about the repayment of the loan.
Sometimes, people confuse the ownership of the home with the lender’s lien on the home for the amount the lender is owed. It’s unfortunate that you didn’t consult with an attorney before your step-mom died.
Don’t make the same mistake twice. Consult with a local real estate attorney. They might be able to provide you with other options or more clarity about your situation.
©2024 by Ilyce Glink and Samuel J. Tamkin. Distributed by Tribune Content Agency. C1637
Leave A Comment