+ Reply to Thread
Page 1 of 2 12 LastLast
Results 1 to 15 of 26
  1. #1
    DDDDDD is offline Member
    Join Date
    May 2010
    Posts
    51

    Mom passed, left me house & mortgage.

    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?
  2. #2
    FlyingRon is offline Senior Member
    Join Date
    Feb 2007
    Posts
    16,046
    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.
  3. #3
    DDDDDD is offline Member
    Join Date
    May 2010
    Posts
    51
    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.
    Last edited by DDDDDD; 08-06-2010 at 01:13 PM.
  4. #4
    nextwife is offline Senior Member
    Join Date
    Jan 2003
    Posts
    24,363
    Then refi in your name and pay off the mortgage. Rates and costs are very low now.
    Last edited by nextwife; 08-06-2010 at 02:16 PM.
  5. #5
    FlyingRon is offline Senior Member
    Join Date
    Feb 2007
    Posts
    16,046
    Yes you can deduct it.
  6. #6
    DDDDDD is offline Member
    Join Date
    May 2010
    Posts
    51
    Quote Originally Posted by FlyingRon View Post
    Yes you can deduct it.
    Ron,

    How do I deduct it? It's not in my name! Or... do you know something I don't?
  7. #7
    HomeGuru is offline Senior Member
    Join Date
    May 2000
    Location
    Catatonic State
    Posts
    81,919
    Quote Originally Posted by DDDDDD View Post
    Ron,

    How do I deduct it? It's not in my name! Or... do you know something I don't?
    **A: your CPA should be able to help you.
  8. #8
    tranquility is offline Senior Member
    Join Date
    Mar 2006
    Posts
    18,287
    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.
  9. #9
    Seanscott is offline Member
    Join Date
    Feb 2002
    Location
    Indiana
    Posts
    725
    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.
  10. #10
    DDDDDD is offline Member
    Join Date
    May 2010
    Posts
    51
    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)
  11. #11
    Kiawah is offline Senior Member
    Join Date
    Oct 2008
    Location
    USA
    Posts
    1,086
    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.
  12. #12
    enjay is offline Member
    Join Date
    Feb 2003
    Posts
    870
    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?
  13. #13
    DDDDDD is offline Member
    Join Date
    May 2010
    Posts
    51
    Quote Originally Posted by enjay View Post
    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.
  14. #14
    justalayman is offline Senior Member
    Join Date
    Nov 2005
    Location
    in the ether
    Posts
    33,021
    Quote Originally Posted by DDDDDD View Post
    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.
  15. #15
    DDDDDD is offline Member
    Join Date
    May 2010
    Posts
    51
    Quote Originally Posted by justalayman View Post
    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.

Similar Threads

  1. Mom passed and left a reverse mortgage
    By susan b. anthon in forum Mortgages, Refinancing & Foreclosure
    Replies: 5
    Last Post: 10-12-2011, 06:47 AM
  2. Wife left house and will no longer pay mortgage
    By limpy in forum Divorce, Separation & Annulment
    Replies: 14
    Last Post: 08-03-2006, 01:40 PM
  3. Grandma passed and left will re: house, has bills
    By tlbjazz2 in forum Wills, Trusts and Estate Planning
    Replies: 2
    Last Post: 09-21-2001, 08:50 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

© 1995-2012 Advice Company, All Rights Reserved

FreeAdvice® has been providing millions of consumers with outstanding advice, free, since 1995. While not a substitute for personal advice from a licensed professional, it is available AS IS, subject to our Disclaimer and Terms & Conditions Of Use.