Can they foreclose on a house if the name on the mortgage is deceased and the name on the deed is another person? The estate is closed. Thanks

Asked by Nicole, Charlotte, NC Sun Aug 12, 2012

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9
Annette Levi…, , New York, NY
Mon Aug 13, 2012
The mortgage becomes due when the only person on it dies. The estate can not be closed if the deceased still owes money. The assets of the deceased must be used to pay off their debt. If the property deed was changed after the death then the bank has grounds to file fraud charges against the person on the deed and their lawyer(s).
If the second person was added to the deed after the purchase of the property (and mortgage) and never notified the bank holding the mortgage, they committed fraud. If the person was on the deed upon purchase and mortgage, the mortgage is still due in full.
Now is the time to speak to a lawyer and mortgage holder about refinancing.
2 votes
John Juarez, Agent, Fremont, CA
Sat Oct 20, 2012
Rayshell1956,

The lender can foreclose. The foreclosure is against the house based upon the loan payments not being made. The loan does hot disappear when the borrower dies. The debt continues and the payment must be made, usually by the person who inherits ownership of the house.

You say the estate is closed. Who handled the estate? How could they have not known that there is an outstanding mortgage on the house?

Have you been ignoring the mail from the bank about the payments being delinquent and threatening foreclosure?
0 votes
rayshell1956, , Palm Harbor, FL
Sat Oct 20, 2012
we live in CA, and my mothers' children names is not on the deed
0 votes
rayshell1956, , Palm Harbor, FL
Sat Oct 20, 2012
My mother children's names is not on the deed
0 votes
Alma Kee, Agent, Tampa, FL
Sun Aug 26, 2012
Hi Nicole,

If the mortgage is higher than the house is worth, you may be best off doing a short sale.

I can help you with a Short Sale and if you are living in the house, I may also be able to get you $3,000 via the HAFA Short Sale program.

Give me a call or email, there will be no cost to you to do a short sale and hopefully can also get the lender to give you $3k relocation money, too.

All the best,
Alma
Alma Rose Kee, PA
Future Home Realty
813.244.9898
http://www.SoldOnTampa.com
0 votes
Loretta Buck…, Agent, Palm Harbor, FL
Mon Aug 13, 2012
Hello Nicole:
When the Estate was settled, all property should have been taken into consideration by the trustee or executor of the Estate. Was this handled by a legal professional?

The ownership of a property can certainly change hands upon the death of the owner, however whomever the property transfers to must also take on any debt attached as well, regardless of whose name is on what. It may prove to be more of a challenge (translate: ka-ching! in legal fees) to navigate through the deed vs. mortgage name, but this certainly does nt mean that the bank does not have the right to foreclose on a legitimate debt.

If you are the new 'owner' of this headache, I wish you well! Do seek legal help!
0 votes
Pamela Cohn, Agent, Clearwater, FL
Sun Aug 12, 2012
Nicole,

Seek legal advice on what to do. If the mortage was not paid off the lien exists. It is unclear how the deed came to be in another person's name. I am assuming two people were on the original deed and one on the mortgage, since you can not transfer a clear title without paying off all liens such as mortgages. Usually lenders require all parties on the deed to be on the mortgage. If this second party was added after the original purchase, then the lender-as another agent stated- could have accelerated their demand and made the mortgage due in full at that time (most mortgages have verbiage addressing this scenario). That being said, foreclosure is a very real possibility. Not being lawyers, Realtors cannot give legal advice...but reccomend you seek it out. The laws vary from state to state. Good luck.

Sincerely,

Pam Cohn
Broker Associate, GRI, SFR, NHS
Real Estate Consulting, Marketing & Sales
Prudential Tropical Realty
2539 Countryside Blvd #3 Clearwater, FL 33761
pcohn@prutropical.com
727-204-7155
http://www.FromCavesToCastles.com
VIEW PROPERTIES ON YOUR SMART PHONE
TEXT "PAMELA" TO 727-213-5142
0 votes
Nicole,
When looking for an attorney look for a real estate attorney that handles short sales, foreclosures and loan modifications. Most will give a free consultation. To be ready and get the most out of it have your financials ready. They will look at your individual situation to see which options are open to you and best for your case. Items to have ready: any letters, correspondense and contact information from the lender. Your last 2 years W2's, tax returns, current bank statements and last 2 pay stubs. Don't wait long. Time is working against you.

Good luck,
Pam Cohn
Broker Associate, GRI, SFR, NHS
Real Estate Consulting, Marketing & Sales
Prudential Tropical Realty
2539 Countryside Blvd #3 Clearwater, FL 33761
pcohn@prutropical.com
727-204-7155 http://www.FromCavesToCastles.com
VIEW PROPERTIES ON YOUR SMART PHONE
TEXT "PAMELA" TO 727-213-5142
Flag Mon Aug 13, 2012
Thanks for the response. The house was my mother's but she pasted away I put the house in my name and sent the mortgage company the info they needed. I continued to pay as long as I could but I stopped a while back and tried to do a short sale and sometime they will talk to me and sometime they won't. I will be calling a lawyer to see if there is anything I can do. Thanks
Flag Sun Aug 12, 2012
Tim Moore, Agent, Kitty Hawk, NC
Sun Aug 12, 2012
It would seem you should have spoken to the lender when the person on the loan died or the lawyers of the estate should have. No pay, no stay and they can foreclose or accelerate the loan based on that as well as not paying. Lawyer time.
0 votes
Thanks I did send the company the info on the death 3 times sometimes they will talk to me other they say they can't because I'm not on the loan. This has been going on for 2 years now.
Flag Sun Aug 12, 2012
Danielle Sha…, Agent, Cape Coral, FL
Sun Aug 12, 2012
If the mortgage isn't being paid then I would imagine that the bank retains the right to foreclose regardless of the estate status.

Not to sound like a broken record but you need legal counsel. Real estate licensees cannot give you legal advice.
0 votes
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