My grandmother and I bought a house in 2005, in Missouri. When we refinanced, she had better credit and so the new mortgage was in her name alone. However, after she signed the new mortgage papers, she did a quit claim deed and put me on the title. Also, she did a Joint Tenant with Rights of Survivorship title, so that upon her death the title would come solely to me. My grandmother died 2 years ago, I never assumed the loan or even had the title changed (my attorney said not to worry unless I sold the house). So, how legally and financially responsible for this house am I?

If your grandmother had the quit claim deed recorded at the time it was prepared then you are the owner of the house. There is nothing you need to do to "change title" since you automatically became the owner when she passed away.

The lender still holds a first lien on the property, though. If the mortgage loan is not paid then the lender can foreclose even though you are the owner, because their right to foreclose has priority over your ownership.

As long as you keep making the mortgage payments you should not have to worry about a foreclosure. If you don't make the payments and the lender forecloses then the sheriff will sell the property at auction and you would be entitled to receive anything remaining from the sales price after the lender gets paid in full.

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Originally Posted by LisaB4657

If your grandmother had the quit claim deed recorded at the time it was prepared then you are the owner of the house. There is nothing you need to do to "change title" since you automatically became the owner when she passed away.

The lender still holds a first lien on the property, though. If the mortgage loan is not paid then the lender can foreclose even though you are the owner, because their right to foreclose has priority over your ownership.

As long as you keep making the mortgage payments you should not have to worry about a foreclosure. If you don't make the payments and the lender forecloses then the sheriff will sell the property at auction and you would be entitled to receive anything remaining from the sales price after the lender gets paid in full.

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What if the mortgage amount is not satisfied? Can they come after me for the financial obligation?

No, you are not responsible for the balance of the mortgage loan if you never signed the mortgage. Note.

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Originally Posted by LisaB4657

No, you are not responsible for the balance of the mortgage loan if you never signed the mortgage. note.

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Thank you for the information.

My pleasure. Good luck!