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kermit · Dec 31, 2006, 09:29 PM

Mother passed away and the home was already quick deeded to me before she passed but there is a mortgage on the home how should I proceed? I plan on getting a new loan but not sure how that works with the mortgage that is currently on the home?? Please help.

J

Fr_Chuck · Dec 31, 2006, 11:57 PM

I would be careful telling them it has been quitclaim deeded. I would just keep paying on it for now. Many mortages have a clause if the house is sold ( and that is what a deed transfer is) then the mortgage come due in full.

So I would hurry and get my own loan to pay that one off.

kermit · Jan 1, 2007, 06:06 PM

So they would want payment in full right now? O.K. I will keep up the payment and am working on a loan now. When I do get the new loan how would that work with her being gone now or does that even matter as far as signing or paying off the old loan in her name?

Fr_Chuck · Jan 1, 2007, 06:45 PM

I am not saying they would, since I don't know the mortgage you have or what clauses are in it, not all have that, but they can, and that is to protect them when the house is sold, so that they can be paid.

A good legal counsel can give you the best info for this

ScottGem · Jan 1, 2007, 06:46 PM

Frankly, I think your quit claim deed is invalid. I'd be willing to bet it was never recorded. A mortgage is a lien against the property. The county should NOT have recorded a change in ownership without infoming the lien holders since they would have to approve the transfer. A quit claim deed doesn't provide a warranty that the person quitting their claim actually owns the property. So even if it was recorded, the mortgage holder can probably invalidate it if they didn't approve it.

So the first thing I would do is check to see if it was recorded. If it was not recorded or the lien not satisfied, you will not obtain a new mortgage until that is done. In the meantime, yes you should continue making the mortgage payments.

LisaB4657 · Jan 1, 2007, 07:03 PM

If the deed was already recorded then it is highly unlikely that the recording office notified the lender. As long as the mortgage payments are current there shouldn't be a problem.

In the meantime you need to apply for a new mortgage. One of the requirements for closing the mortgage is that a title search is obtained. The search will show if the deed was ever recorded. If it was recorded then you can proceed with the closing and the closing agent will take care of using the new loan to pay off the old loan. If the deed was not recorded then you will have to provide the original deed to the closing agent. They will have it recorded right before they have the new mortgage recorded and they will take care of paying off the old loan.

So keep making payments on the old loan while you arrange for a new one. The closing agent will tell you what you need to do for the closing.