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Mom passed, left me house & mortgage.

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DDDDDD

Member
What is the name of your state (only U.S. law)? New York

My mom passed in 2007, willed me the house. I am also the executor. The house has a mortgage. The County and the Township already have me listed as the owner. I contacted the bank holding the mortgage to inform them I was the new owner. They asked for the (Letters testemary or the letters administration, whichever they asked for my lawyer knew what it was) and her death certificate, which my attorney sent to them. I asked the bank if I needed to do anything else, provide anything else, (assuming SS#, DOB, etc...) and was told the bank's research dept. would sort it all out.

A couple months ago the mortgage payment comes in "Estate of...(my mother's name) C/O (my name.) Is this how mortgages are transferred from a deceased to an inheritor, or should I expect that the bank will soon just put my name on the mortgage, or, did the bank mistakenly put the mortgage as property of the estate instead of my name?
 


FlyingRon

Senior Member
The mortgage isn't property (at least to you). You should just continue paying it if you now own the property (and intend to keep it). Whose name the bank has on the mortgage (be it your dead mother, her estate, or you) really matters little. They can't call the loan by law and really have no incentive to these days as long as someone is keeping up the payments.

Eventually, they'll probably love to have you personally responsible, but there's no panic to rush out and do it.
 

DDDDDD

Member
Thanks Ron, but how do I claim the mortgage interest I'm paying when I file my taxes? I mean, the mortgage company is probably reporting under my dead mother's SS#. In the meantime, I'm the one paying it. Also, I find it unsettling they're probably showing all these on-time payments under my mother's credit report, whereas mine is showing nothing. I could use both the tax writeoff with the IRS and the on-time attributes to my credit file.

Thanks for your response.
 
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nextwife

Senior Member
Then refi in your name and pay off the mortgage. Rates and costs are very low now.
 
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tranquility

Senior Member
While it is true that one can only deduct the home mortgage interest is you are responsible to pay it, since you own the house and would lose it, case law would say you *are* responsible to pay it.
 

Seanscott

Member
If you are still the executor, I assume the estate has not been closed. If that is the case then the interest is a tax deduction for the estate, not you personally.
Your attorney should use these deductions in the same year the estate generated income (dividends, rents, interest, sale of property, etc). If he didn't do this, then you're probably left with no deductions and a **** lawyer.
 

DDDDDD

Member
No, that's part of the dilema. There is no "estate" anymore, it was closed. When I called the bank and told them to put the house in my name, they asked for her death cert. and basically the part of the will that indicates who is supposed to get the house. The bank then just added "estate of" (my mom) and "care of" (me)
 

Kiawah

Senior Member
Send the bank a copy of the new deed, showing how you are now the property owner. Ask them to change their records to your name and SSN.
 

enjay

Member
Interesting. So if I were to die and leave my house to my child, the bank just transfers the mortgage regardless of credit, employment status, or any other issues?
 

DDDDDD

Member
Interesting. So if I were to die and leave my house to my child, the bank just transfers the mortgage regardless of credit, employment status, or any other issues?
Yes, I don't think the bank has any choice. If the inheritor doesn't continue payments, then the bank can do what it has to do, but it can't tell your kin the loan is not servicable.
 

justalayman

Senior Member
No, that's part of the dilema. There is no "estate" anymore, it was closed. When I called the bank and told them to put the house in my name, they asked for her death cert. and basically the part of the will that indicates who is supposed to get the house. The bank then just added "estate of" (my mom) and "care of" (me)
the bank doesn't, and cannot put the house in your name. The estate has to deed it to you. You state it has already been done so not real sure what you want the bank to do concerning the title.



the reason the mortgage loan is still in your mother's estate's name is it is still her estate's mortgage loan. It would not technically be yours until you acquire your own mortgage loan. With that, you will then be required to provide a trust deed or mortgage (whichever your state and the bank use). As it is now, they hold a trust deed or mortgage from your mother. That way, if her loan is defaulted upon, they can foreclose. If they simply put the loan in your name without you providing a trust deed or mortgage, they would not have any security interest in the home.
 

DDDDDD

Member
the bank doesn't, and cannot put the house in your name. The estate has to deed it to you. You state it has already been done so not real sure what you want the bank to do concerning the title.
The estate already deeded it to me. According to County and Town records, the house went from (my mom's name) to ("estate of" my mom's name, in c/o my name, executor) and now the house is simply in (my name.)

WHen I called the bank to make the initial inquiry, they said they would do the research of the county records after I sent them the death certificate and the letters of administration. My lawyer sent them to the bank, and the bank changed the mortgagee on the loan to "the estate of" my mom, in c/o me.

the reason the mortgage loan is still in your mother's estate's name is it is still her estate's mortgage loan. It would not technically be yours until you acquire your own mortgage loan. With that, you will then be required to provide a trust deed or mortgage (whichever your state and the bank use). As it is now, they hold a trust deed or mortgage from your mother. That way, if her loan is defaulted upon, they can foreclose. If they simply put the loan in your name without you providing a trust deed or mortgage, they would not have any security interest in the home.
OK now I'm confused. My understanding was that the bank would simply change the name on the Mortgage once they are shown title of the property has changed, due to the death of the original mortgage holder.

Are you saying I have to go out and aquire a mortgage myself, and pay the estate's mortgage off with mine?

Thanks for your input.
 

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