Inheriting a house?

Though a will is the normal means of informing who would be able to have possession of your property upon you not being here with us, it would be better if you would, in addition to a will, you might consider a revocable living trust.

Anyone may challenge a will in court, that might include individuals you might not know.

A revocable trust is not able to be challenged and do not require the property to go through probate. Also there are tax advantages. Your heirs would not be required to pay inheritance taxes.

You have complete control of the property and would be able to make changes to this trust as you see fit over time.

You would need to appoint an executor to act on your behalf, handling your business if you are mentally or

physically unable to do so.

You should contact an estate planner to discuss what would work best for your financially. There is a fee you would be charged for the making of the revocable trust. however, it is well worth the cost.

According to the Garner-St Germain Depository Institution Regulation act of 1982 prohibits a lender from exercising any due-on-sales clause as long as the property is transferred by will to a surviving spouse, children or close relatives and they move into the house as their primary residence.

As long as the surviving joint tenant, children or other close relatives makes the mortgage payments, the lender cannot enforce a due-on-sale clause--if the heir occupies the residence.

This is not a state law, this law applies to each state in the United States as this law was passed by Congress.

Failure on the part of the surviving spouse, children or close relative to pay the monthly mortgage payment would be reason for the lender to exercise foreclosure procedures against the occupants.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"

when a person passes there usually is a will but they also have bills to be paid. So your executor or executrix will take your will to an attorney whose specialty is elder law and first your bills would be paid and if there are some left over then the house is sold to pay the balance, and then the balance of the money would go to your relative if that's what you wanted, otherwide there is a succession, like first it would go to your spouse and if there is no spouse then it would go to your children and if no children then you need to specify that in your will. If your relative wants to keep the house then they would have to get their own loan on it.

You can't inherit a house unless it's totally paid for, or unless both names are on the title but at this point there is no title there is only a loan.

Read your contract. It likely calls for the full amount due. However, most lenders would not care to do that. They only want to get their payment every month. In all likelihood, the relative would be able to continue making payments, without a problem. Anyway, it is possible that your contract also calls for transferring the loan to a new owner. Read it and see.

It can be done if you get level term life insurance, with the named relative as the beneficiary, so he or she may pay off the mortgage of the house. I also agree with creating a trust and leaving it to the person that way and avoiding probate

The heir may be able to assume the mortgage but they would need to qualify.

And you would need to not pass away with other debt that you don't have cash to settle. If you have no other assets and die with medical debt, car loan, credit card debt, etc., the house will be need to be sold to settle your debt. The heir would receive what is leftover after your debt is settled.

Also, unless you have long term care insurance, the house will need to be sold before you die if you need government subsidized care such as nursing home care.

Depends a lot upon where you live. Some states allow for relatives to assume mortgages (And liens and taxes) but, may require the beneficiary to live there.

Your estate has to be probated and all debts paid off before anything is disbursed to your heirs.

That means they will either have to sell the house to pay your estate's debts (i.e. the mortgage) or they will have to refinance the mortgage into their names.

Good God what a lot of ridiculous responses! Title to the house cannot be transferred unless the loan is paid off or refinanced into the heir's name.

Most people would have insurance that pays off the remaining mortgage on their death. If not what happens will depend on the country and the laws in this regards

You cannot assume a mortgage...definitely not if passing to other than a spouse.