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keeper · Aug 20, 2008, 12:02 PM

Thank you for your advice in advance.

A friend's mother died recently and it brought to mind a sticky subject. We had to refinance my mother's home to provide living expenses for her as neither I nor my sister was financially in a position to support her. She is the only person on her deed, which is not in her will at this time. Her will designates my sister and I will inherit her property equally. We live in NC. The undesignated house in in NC. The other 3 properties are in TN.
They are very small, not "estate" grand type properties.

SInce the mortgage on the house in NC will most likely still be outstanding in the event of her death, how is that handled? Is the loan foreclosed on? Or How is the estate probate handled in regard to payment of the mortgage that is still outstanding?

She has 3 other properties which are in the will which are not mortgaged and are in another state.(TN) She is now suffering from dementia and my sister and I have separate/equal powers of attorney. What would be the best course of action to take?

DO I need to create and register a deed in the other state designating us as heirs? Could we simply add our names to the existing deeds on those properties as survivors and bypass probate?

I have taken care of my mother for 5-1/2 years and it's only recently that I have allowed myself to think of these things. She is still in good health though :)

Is there anyway to AVOID all the hassle?:eek:

Thank you VERY much for your advice.

keeper

excon · Aug 20, 2008, 02:10 PM

Hello keeper:

She might have purchased credit life insurance when she refinanced. At her age, I'll bet the bank insisted on it. Let's hope. If not, the note will become due upon her death.

Maybe the bank will let you and your sister assume the loan. They really don't want the house. If not, you'll have to find your own financing.

Whether the house goes through probate or you inherit it outside of probate, or even in another state, changes NOTHING in terms of the bank. They have first claim on the house no matter who it's transferred to.

excon