Ask Experts Questions for FREE Help !
Ask
    kbiddy's Avatar
    kbiddy Posts: 1, Reputation: 1
    New Member
     
    #1

    Apr 5, 2013, 03:13 PM
    Who pays second mortgage death
    My mother was joint tenants with my grandfather on her deed. She passed away and my grandfather did a transfer to grandson of the house, so now the house is mine. My question is she had a home equity loan, who pays it? Do I let it go into collections and charge off? If I don't pay it can the house get foreclosed?
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
    Uber Member
     
    #2

    Apr 5, 2013, 04:42 PM
    It is against the law to transfer the property without the consent of any/all lienholders. Yes, the current owner of the property is 100% responsible for the line of credit/debt.


    Go into collections and charge it off? So you would walk away with the house free and clear? If this worked a lot of people would try it.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #3

    Apr 5, 2013, 07:23 PM
    The loan was secured by the property stays as an encumbrance on the property even if the signers die.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
     
    #4

    Apr 5, 2013, 09:19 PM
    Charge off is a collection term and only refers to tax status of property and not that the debt is not owed, Yes of course they may foreclose if the debt is not paid. In addition additional late fees, and interest will be adding.

    Legally most likely the transfer should not have taken place without this being paid or re-assigned. But yes you owe it now.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #5

    Apr 6, 2013, 05:17 AM
    Actually charge off is an accounting term. It means that the debt is charged off against income for tax purposes. It has nothing to do with the obligation to pay the debt.

    Secured debt is rarely charged off since the secured asset can be sold to, at least partially, offset the debt.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

If two owners on a mortgage, deed in one persons name and we foreclose who pays [ 3 Answers ]

I am on the deed only, but 2 of us on the mortgage . If I give the house back to the bank, is my half satisfied on the shortfall of the mortgage e.g. $230k left on mortgage.. my house sells for $120K shortfall $90k am I still responsible for that amount?

2 people on mortgage, one filed for bankruptcy who pays taxes on 1099c [ 4 Answers ]

My bankruptcy attorney had myself and my partner sign papers to show that the split on the ownership of the hous was 95/5. I own 95% I filed bankruptcy 2 years ago. I know that I don't pay taxes on the cancellation of debt and according to the bankruptcy attorney my partner should only pay 5% of...

What happens to mortgage with death? [ 11 Answers ]

I'm preparing to start the selling process of my dad's estate. He quit-claimed it to me, which I found out upon his death. I didn't know what else to do (being 21 and scared) so I just paid the monthly mortgage bill and insured it under my name. Now that I want to sell, I HAVE to go to the bank...

Non custodial parent rights in death of a child he pays support for [ 5 Answers ]

Friend who is non custodial parent - his daughter killed last night in car wreck in MD. What are his rights as to state of burial. Mother moves around. He pays child support to Lancaster, PA, where they did live. SHe wants child buried in SC where she is moving to.


View more questions Search