June 13th, 2010
What happens to a property if someone dies and their is still a mortgage on the place?
My mom and dad bought a house together in 1998. My mom left my dad a few years later. My dad wanted to keep the house so he kept paying the mortgage. My dad had my mom sign a quick claim deed and her name was taken off, but her name is still on the mortgage. My dad died a year ago and the house is now in foreclosure. My dad didn’t leave a will. The mortgage company called my mom and ask her if she was wanting to save the house from being foreclosed on. My mom has the money to get it out of foreclosure. But if she would move back into the house and start paying the mortgage what happens to bills my dad owed? My parents are divorced but my dad had some outstanding bills and his sister said he owed her some money. Can they force my mom to sell the property if she is paying the mortgage or will they put a lean on the property until the bills are paid? The house isn’t worth was is owed on it and mostly likely wouldn’t cover the bills if sold. Any information would be great.
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Filed under: Buy Property
If the house is not worth what is owed on it, then there is no money from that house that would go to the estate. Any other of dad’s bills are not your mother’s problem, except in the case of utilities, if she should try to move back into the house, which she may not have the legal right to do. If she values her credit and can get it out of foreclosure, then she should look into it. However, she needs to understand that she does NOT own the house, so it’s a messy situation.
No one can put a lien on the house unless they have received a judgment, but your mom should still work with the probate court and consult with an attorney of her own before she does anything. The fact is, she is still responsible for the mortgage, although she actually signed away her rights to the house with that quit claim deed. It would be in her best interest to work something out with the lender and the probate court.
Any money that would be left over after settling bills would go to the estate. Unless there is money left over, it’s easier to let the bank take it back.
The estate will go through probate and the court will sell everything that can be sold to pay outstanding.
The estate will the other bills depends on the deed she has no say on the deed she has no say on the divorce.
For the other bills depends on the estate will go through probate and the estate will go through probate and the.