I have read simmular post in regards to names on deeds and loans but here it goes. My mother has financed a condo loan (soley in her name) for my brother and he makes the payments ( because does not have the credit to get it on his own ) here is the real question. What happens to the condo after her death, ( he says that it's his ) but what happens when the bank finds out about her death ? Will they not care as long as they are reciving payment or what ? I know that in her will it states that she gives him the property to him subject to any mortgage, deed of trust, municipal assessment, ad valorem taxes and other encumbrance or lien on such property at the time of her death, and that no item or part theirof shall be paid by my executor as a dept of my estate. I am the executor of the estate and it is my understanding that by his name not being on the loan or deed that the house should go up for sale or he had to finance it on his own. I am looking down the road on this matter because of my envolvment in this matter.

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Originally Posted by 02dodgeman

I know that in her will it states that she gives him the property to him subject to any mortgage, deed of trust, municipal assessment, ad valorem taxes and other encumbrance or lien on such property at the time of her death, and that no item or part theirof shall be paid by my executor as a dept of my estate. I am the executor of the estate and it is my understanding that by his name not beeing on the loan or deed that the house should go up for sale or he had to finance it on his own. I am looking down the road on this matter because of my envolvment in this matter.

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Hello 02:

I think you're right on with your assessment. Until the loan is paid off, the condo belongs to the BANK. Therefore, it doesn't matter who your mother wants to have it, or who your brother thinks should have it.

Additionally, it appears that your mother doesn't want any part of her estate going towards the mortgage, either...

But, your mother doesn't have any choice in the matter. If there's ANY money in her estate, it goes to pay off HER bills, the mortgage being one of HER bills. If it's NOT paid off, the bank will take it, no matter what the will says.

Now, your brother could attempt to assume the loan. The bank might be very amenable to that. I wouldn't know, but if he's going to be the new owner, he's going to need to finance it himself.

Yes, there will be a death certificate filed, and as executor, I'm certain your duties will include sending copies to her creditors.

excon

So my question to you excon is if she were to refinance the condo in both my mothers and my brothers name, after her passing would the loan be passed on to him and we not have to pay for it out of the estate.

The property needs to be re-fi with a new loan in both names and the deed changed to include both names with right of survivialship . That why it should pass directly to him.

In the other case it would have to remain in estate till paid off.