What is the name of your state? California
My mother passed away in 5/04. I am her only heir, I had to go through a probate process to have control of her estate. I am currently refinancing her home loan from USDA-RHS, and will be using it to pay legal fees for the probate, as well as consolidating some of my debts. USDA is saying that the payoff will now include what was being subsidized while she was alive. It is about $28,000, which I never knew about having to recapture sudsidy. The subsidy will need to be paid or we will not be able to refinance.
I was wondering if there is anyway around having to pay back the subsidy recapture, since I am just paying off my mother's loan, being that I was not the one getting the subsidized loan. Or if subsidy recapture is not enforced, due to a death transfer. I think that it is kind of ridiculous that I have to pay the collected subsidy if it was not me that was getting it subsidized. Or at least only have to pay since the time my mother passed. Thanks for any help