Home Mortgages After Death
Average life expectancy rates are increasing, and so are the circumstances in which mortgages are being carried into retirement and outstanding balances remain after death. Planning for property ownership and debt responsibilities before passing them on to loved ones is more important than ever.
Transfer of Mortgage Ownership
What happens to personal property or real property such as a home after a person dies is complicated. If there is a will and the home is designated to a person in the will, that person (the heir) receives the home. If a person dies without a will then intestate law applies, which follows familial lineage guidelines. This means the home is designated to a spouse, state-registered domestic partner, child, parent, sibling, grandparent, aunt and uncle or niece and nephew, in that order, depending on state law.
Sometimes a will is not enough. The decedent’s property first must satisfy any remaining debts, even if the mortgage is paid off. If the decedent has enough liquid assets to pay off the mortgage, the bank will “forgive” the debt and the heir will receive the home without debt owed. However, if there are not enough liquid assets to pay off the mortgage after death, the heir can either take over the loan, refinance the loan in the heir’s name, or perform a reverse mortgage.
Deed, Title Transfer, or Co-Signers
A person’s name on a deed, title transfer or mortgage co-signer will come into play legally after death, so eliminate confusion for your loved ones and ensure the names on the will match those on the deed and mortgage.
Why is this important?
Death is an emotional time. Adding the stress of what happens to the home, debts, and personal property can all be eliminated by creating a My Life & Wishes plan. It’s your life, but it’s their future. Make sure it’s a happy one.
Probate is the court process by which a WILL is proved valid or invalid. If there is no Will, it is the legal process where the estate is administered after someone dies. In the absence of a Will the court appoints a Personal Representative to administrator the deceased persons estate. This Representative is responsible for locating any assets and determining their value.
Statistics show that as many as 9 out of 10 Americans may have unclaimed money waiting to be discovered! It's estimated that almost $40 billion dollars in unclaimed cash or abandoned accounts exist in the United States today. Is some of that yours?
Most of us have participated in emergency drills – usually weather related and usually at work or school. But what happens if an emergency strikes while you’re at home? Does your family have a plan to evacuate or hunker down? What about preparing your neighborhood, apartment building or block on what to do if a disaster strikes your community?
September is National Preparedness Month! While we can never predict when or where the next disaster will occur, we can be sure they are coming. Being proactive and preparing ahead of time can save countless hours of trying to react at the last minute. It is simply the smart thing to do! So how do you get started and what things should you think about doing before the next disaster strikes? Here are 6 tips to get you started: