What happens to the mortgage on your home when your kids inherit your home

Attorney Tom Olsen: Robert, you're on NewsRadio WFLA. Go ahead.

Attorney Robert Hidock: Hi, good morning, Tom. Question is regarding a mortgage, a VA mortgage. I would like to purchase a property over on the coast and then with a deed in a drawer or ladybird deed, leave that to my son. I would purchase the home using my VA benefits, get a VA mortgage. The question, when I die and the place passes to my son, does the VA mortgage stay with that or does he have to then refinance?

Tom: Robert, that's a great question. The answer I'm going to give you is going to apply not only to VA mortgages but all mortgages out there. The rule of law is this, is that if the person that inherits your property is related to you, and if that person lives in that home or moves into that home after you pass away, then the lender is required to allow them to assume the mortgage, step right into your shoes and keep on making payments.

If the person you leave the property to is not related, like a friend, or that person is not going to live in the home that has a VA mortgage on it, then the VA can call that loan due and make your son either sell the property and pay the loan off or refinance the mortgage. Does that answer your question? [crosstalk]

Robert: Excellent, thank you. Absolutely. Thank you very much, Tom and thanks for the show. We really appreciate it.

Tom: You're very welcome. Most people who leave their properties to their kids, most people have a mortgage on their home, so they ask us that question on a regular basis and that's the answer that we give them.

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