What happens to mortgage on house when parents pass away?


What happens to mortgage on house when parents pass away?


Attorney Tom Olsen: Roslyn, you're on news 96.5, go ahead.

Roslyn: Yes. Hi, my parents were wondering how to handle in case something happens to them. They have a mortgage on their home, how that mortgage will be transferred into the children's name or even just one or two children's name. The financial company wants mom to add to make sure the mortgage will be continue to paid.

Attorney Tom Olsen: They lender wants your parents to add the kids' name to the mortgage?

Roslyn: Right.

Attorney Tom Olsen: I have never heard of such a thing. I find that impossible to believe and there must be some misunderstanding. Roslyn, the law says that when there's a mortgage on mom and dad's house and the children inherit that house, if one of the kids are going to continue to live in the home, the lender by law must allow them to assume the mortgage. Step into the shoes, keep on making the mortgage payments. If one of the kids is not going to live in a home, then technically the lender could call the load due, but my general experiences says that they will not call it due. As a general rule, when mom and dad passed away and the kids inherit the house, they will just simply keep on making the mortgage payments until the house has been sold or that loan has been paid off. That's the good news as might been my experience, Roslyn. I do not think your parents need to be messing around with the lender. I don't think that would get them anywhere anyway.

Roslyn: Okay. Thank you.

Attorney Tom Olsen: All right, Roslyn.