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tannadeb1957 · Aug 9, 2012, 03:34 PM

My sister lives with me and helps me pay half of the mortgage. The house is in my name only. If I die and leave my house in my will to my sister can she take over the payments that are lfet on the house or what would she have to do?

ScottGem · Aug 9, 2012, 04:13 PM

First its not a good idea to piggyback your question on another thread. This can lead to confusion. So I've moved your question to its own thread.

Depends on a number of factors. If the lender is willing to assign the loan to her then that works. It will depend on how much equity is in the home and your sister's credit rating.

However, if you don't have much of an estate, it may be better for her to say nothing to the lender and just keep paying. Once the loan is paid she can then show the will and have the deed transferred to her name.

tannadeb1957 · Aug 9, 2012, 04:46 PM

But if she doesn't say anything, and she signs my name to the payments isn't that against the law?

ScottGem · Aug 9, 2012, 05:18 PM

Who said anything about signing your name? The lender doesn't care who signs the checks as long as the account number is on it.

tannadeb1957 · Aug 9, 2012, 06:14 PM

Thank you for your help. Much appreciated.

mmresd · Aug 9, 2012, 06:49 PM

Yes, she would become the executor and be able to take over the payments of the home.

ebaines · Aug 10, 2012, 06:19 AM

Originally Posted by ScottGem

However, if you don't have much of an estate, it may be better for her to say nothing to the lender and just keep paying. Once the loan is paid she can then show the will and have the deed transferred to her name.

Sorry, but I really don't like the advice that the sister should commit fraud. Lots of issues with this - sure she could get away wth it (at least for a while) but complications will arise. For example, she won't be able to deduct the mortgage interest on her taxes, as the 1098 form sent by the bank that documents mortgage interest payments will continue to be in the brother's name and SS number, not hers. Second, if she ever wants to sell the house she can't as it's not in her name. Similarly she won't be able to take a home equity loan. It's best for her to do the right thing and get a new mortgage in her own name.

Originally Posted by mmresd

Yes, she would become the executor and be able to take over the payments of the home.

No - as executor her responsibility would be to resolve the brother's debts, including closing out his mortgage.

ScottGem · Aug 10, 2012, 07:58 AM

When I reread that I forgot about the issue of deducting the interest and taxes. But I don't think there is any fraud involved. As long as the mortgage payment is made the lender doesn't care who makes them. There is no legal requirement that a check has to be issued from the mortgagee. So it would not be fraud.

And an executor can postpone the sale or distribution of assets of the estate if there is an advantage to it.

So the real issue here is whether the lender will allow an assignment of the mortgage or whether the sister can qualify for a refi.