The mortgage document is also likely to have a 'due upon sale' clause, which means that the loan is to be paid off upon the sale of the property. However, most banks do not enforce this. Especially during the current economic situation when they are still sorting out foreclosures from people who did not pay. And, due to the nature of the transaction resulting from an inheritance, the bank likely would not pursue this anyway.
All of this is assuming the property is in Georgia. There are different laws in different states. Also note that depending on the situation, you may, in fact, be able to qualify for a much lower interest rate. Due to the low mortgage balance, the lower rate may not justify the amount of closing costs.
Feel free to call me at 678-992-3817 if you have any further questions regarding this.
The home, if quit claimed to you, would still show the mortgage in the name of whoever took out the mortgage and a lien would still go with the home. You may want to contack an attorney in your state to get additional answers.
Purchasing the property from the estate and obtaining a new mortgage is the proper way to do this.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
1. Your father could sell the home to you for a price to pay off the mortgage, along with any closing expenses. The deed would be transferred into your name at that time.
2. Your father could pay off the mortgage if he has the means and deed the home to you.
Check with the mortgage company to see if they offer any other options.