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11-04-2008, 09:26 PM
| | Junior Member | | Join Date: Nov 2008
Posts: 1
| |  USDA mortgage and a family members death
What is the name of your state (only U.S. law)? North Carolina
My mother passed away on June 19, 2008. She had a loan with the USDA and had subsidized payments on the loan. She had a will that stated her property and assets were to be divided equally among her 3 children. The children have been to the local USDA office and are getting no where.
They are saying that if the house goes into foreclosure then the 3 children will get a 1099 for the value of the house.
Just because it is stated that her things were to be divided equally, how can the 3 childen be held resposible for that debt if they have not signed any paperwork for the loan or any other paperwork associated with the house?
HELP!!!!! |
11-05-2008, 09:19 AM
| | Senior Member | | Join Date: Feb 2007
Posts: 5,487
| | | While the USDA subsidies are a bit different than a regular mortgage, I can't imagine what the rep told you has any validity.
Heirs are not responsible for the debt, nor are they receiving "income" if the debt is forgiven.
I'm not even sure what you are trying to get out of the USDA. Open probate and let the attorney handle it. |
11-05-2008, 12:44 PM
| | Senior Member | | Join Date: May 2000 Location: Catatonic State
Posts: 71,453
| | Quote:
Originally Posted by weaverd  What is the name of your state (only U.S. law)? North Carolina
My mother passed away on June 19, 2008. She had a loan with the USDA and had subsidized payments on the loan. She had a will that stated her property and assets were to be divided equally among her 3 children. The children have been to the local USDA office and are getting no where.
They are saying that if the house goes into foreclosure then the 3 children will get a 1099 for the value of the house.
Just because it is stated that her things were to be divided equally, how can the 3 childen be held resposible for that debt if they have not signed any paperwork for the loan or any other paperwork associated with the house?
HELP!!!!! |
**A: what are the mortgage payments not being made? The property must be sold and the loan paid off in order to have cash to give to the 3 beneficiaries. This is a probate issue. | |
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