Ask Me Help Desk - Death and Mortgage

Death and Mortgage

I live in Florida with Homestead Laws. My siblings and myself just received our "Summary Administration" papers back from the Probate Judge signed. My mom has been dead for over 2 years, so in Florida, no claims can come against the estate now. My question is: Her mortgage is 16,000 dollars on a house that is worth 100,000. Do we keep paying the mortgage as planned or stop and let them put a lien against it, until we sell. I talked to the Mtg Co and they were rude, saying they owned the house and wouldn't take my money. The house right now is only 1 payment behind. I have the signed paperwork stating that the title rightfully descended to me and my siblings. What do I do now?

An executor should have been appointed for the estate. That executor was responsible for continuing to make payments on the mortgage.

If the title of the property is still in your mother's name, then the lender does not own the property. All they have is a lien on the property.

And they already have a lien, it is called a mortgage. The estate has to keep paying it and the probatee court will issue the paper work for a new deed to the heirs

Here's the dish... My mom and I had a joint account, I was her POA while she was alive, so after she died my siblings told me to handle just keep handling things until we could decide what we wanted to do. I paid all the bills on the house including the mortgage out of our joint account. We didn't file probate until Feb this year. She has been dead two years now, Since there were no creditors, only the house as an asset, which is homesteaded and exempt, we filed Family Summary Administration with her will. There is no executor, I guess we are the executors now. The petition I filed with the court names all of my siblings and myself as Administrators. I guess my question now is should I keep paying the mortgage? What will happen if I don't. The lady at the bank made it clear to me that THEY made the agreement with my mom not me and they now own her house. I asked how this is possible since my mom is now deceased and WE own the house. What I would like to do is Not make any more payments. Sell the house and pay them people off. Is this something I can do? When I told the lady at the bank that I thought they were practicing deceptive banking practices she cut me off and said "this conversation is over".
Man was I mad!!

Quote:

Originally Posted by dixie4459

What I would like to do is Not make any more payments. Sell the house and pay them people off. Is this something I can do?

Hello dixie:

I know that's what you'd LIKE to do... But, the BEST thing to do, is hire a lawyer, or the bank might actually wind up OWNING the house.

excon

Is it possible she had a reverse mortgage? That's the only way I can see that the bank would think they own the property.

Have you checked with the county clerk to see what is recorded for the property? As administrator have you moved to change the title on the property?

No, you should NOT stop making payments because that would allow the lender to move on the property. You should keep a record of all payments you have made. This will be reimbursed to you from the sale off the top.

No she didn't have a reverse mtg. I found the contract, it looks pretty standard. Bank of America.
Having read the threads to my original question, I now have another.
How does the property get into our name? Do we do that with the letter from the judge? Go to the Property office? Does this get done automatically through the courts?
What happens if we just put the house up for sale, do not make payments on the mtg, what will happen between "trying to sell the house and actually selling the house", What can the mtg co do?

Thanks so much.

If you plan on selling the property I would NOT bother transferring it into your names. I would sell the property and at the closing, the estate administrator can sign off the transfer to the buyer.

I would NOT advise not paying the mortgage. First, this will incur late charges and interest that will come out of the proceeds of the sale. Second, in today's market it may take a while to sell and that could give them time to foreclose.