My mother passed away a week ago and my name is on the title of the house, along with my brother. She put the house in our names in case something happened to her. The loan is in her name only. We do not have the money to keep paying the mortgage payments and we do not live in the same state the house is in, so it would be difficult to rent it to make the payments. (The house is in Indiana. I live in California). I think the balance on the loan is approximately equal to the value of the house. If we let the bank take the house, will that effect my credit since my name is on the title? Even though my name is NOT on the loan? What happens in the event that the person whose name is on the loan dies? I can't afford to be responsible for the debt and I don't know what to do.
Please let me know. thanks

ScottGem

First of all, the transfer of the property may have been illegal since there was an existing lien against it. Frankly, I would try and void the transfer deed and let the property go back in mom's name. Then contact the lender, advise them that your mom is deceased and the estate does not wish to keep the house.

LisaB4657

The transfer was not illegal. It may have been in violation of the terms of her mortgage but it was not illegal. Since it was not illegal it can't be voided. However you and your brother may be able to transfer your interests in the property back to her estate and then contact the lender.

Have you considered trying to sell the house?