Mother died, We live in home, what happens?

[Guitarantula]

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

Tennessee

Hello

Me and my two children lived with my mother in her home. She was 83 years old and fell and died this month. She owed 60 thousand dollars on this home.

I am disabled (legally blind) and one of my children is a minor (16 years old)
We do not have good enough credit to purchase a home, and not enough money to even move at this time. The house payments are 506 dollars a month. I might be able to pay the payments and keep the elctric and water on as well so that we can live here, but I do not know what my rights are and can't even afford a lawyer.

We have only a few days to decide if we should even pay a house payment due at the beginning of next month. If we do, and then they want to throw us out, we would be out our payments we make and that also would hamper us from saving any money so that we could go get another place of our own.

I have a sister and brother but neither of them have good enough credit to purchase the home either. The loan is with Bank Of America.

Can anyone give me an idea of what, if any, rights I have by simply living here for the last three years with my children and mother. How long would it take the state to actually pull up in the yard and force our stuff out on the street? Will I have any rights to continue to live here and pay the house payments because of having lived here for the last three years. My Social Security payments and such from the state might be enough to pay the basic bills so we can live. I do not want to begin making house payments and struggling to survive only to be thrown out and lose what payments I have made.

The first payment due since my mothers death will be due by the 5th of next month (5 days). I would appreciate any and all help that can be given

Thanks

 

[nextwife]

Is there equity? Life insurance? Other assets? Creditors of her estate?

 

[Guitarantula]

thanks for replying.

I am not sure if there is equity, but I would not think so. I am pretty sure that bank of America would lose a lot of money if they tried to sell the house for what is owed on it.

My mother had 3 life insurance policies, and they will pay her other debts off with probably very little left over. She owes a couple small finace company loans and a couple thousand dollars to Lowes, and maybe a few doctor bills, but there should be enough of the life insurance to cover everything besides the house.

They might get 45 thousand maybe out of this house if that if they were to foreclose. As I said, it would be a struggle but I could probably keep the payments paid and not fall behind, so they would be able to make their profit if they were to allow us to continue to live here, but as I said, I don't have any credit. The house payments are paid up to date at this point.

So basicaly, after we pay Lowes and her other bills with her life insurance, and we still owe 5000 on her funeral bill, but the insurance could be as much as 25 thousand dollars because she had accident insurance and the death certificate says accidental. She never recovered from her fall.

So i am simply trying to figure out what protections I have from living here and what all they would have to do in order to toss us out on the street, and how long that might take in Tennessee, or what the posibilities are that they might say to us "Just pay the payments and keep them up to date", which they are right now.

Thanks

 

[nextwife]

Who are the life insurance beneficiaries? If not her estate, they belong to the named beneficary. and need not be used to pay her debts.

 

[Free_Advice]

Why waste the mortgage payment? is really what you're asking..

It's up to you .. nothing will happen immediately (I would not even tell the bank w/o further information)....

If the residence is only worth 45K .. I would not pay 60K for it.

Where you will live in the future?

 

[John_DFW]

Who are the life insurance beneficiaries? If not her estate, they belong to the named beneficary. and need not be used to pay her debts.

^ Quoted to insure that the OP does not miss this! ^

I might be able to pay the payments and keep the elctric and water on as well so that we can live here, but I do not know what my rights are and can't even afford a lawyer.

As I said, it would be a struggle but I could probably keep the payments paid and not fall behind

You seem to have a lot of doubt about the ability to make the payments.

I think you should look long and hard at the finances to know for certain if you can meet the financial obligations of the house. Of the payment does not include escrow for taxes and insurance, you will need to save up enough to pay those separately.

Many home buyers under estimate how much maintenance on a home can cost.

 

[Guitarantula]

There are 5 children all together, but my two brothers who live in Michigan said they don't want anything and that us three down here can have everything if there is anything left. We all had to sign something saying we were her children and we all are the beneficiaries I guess, or maybe my sister is, but we have agreed to split it eenly if there is anything left. Why won't we be forced to pay her Lowes and small loan debts with the insurance money?

Yes, I am pretty sure we can make the house payments without falling behind, and yes, the insurance and such is included in the house payment. I was planning to call bank of America tomorrow and tell them my mother has passed on, are you saying i shouldn't do this?

I have not planned on moving anywhere yet as I don't have enough money to move and have no where to go anyway. I guess i would have to find a mobile home or apartment to rent or something. For my part I would like to just stay here, even though it would be a struggle. Isn't it against the law not to tell Bank of America that my Mom has passed?

Can bank of America let us stay and make the payments if they want to and think that is the only way they will make thier money on this place, even though I don't have the credit to buy this place? I definitely need to know if i should call them tomorrow and whether I should make a house payment on the 5th or not. I was just going to ask them what they want me to do, to make a payment or not.

 

[LdiJ]

There are 5 children all together, but my two brothers who live in Michigan said they don't want anything and that us three down here can have everything if there is anything left. We all had to sign something saying we were her children and we all are the beneficiaries I guess, or maybe my sister is, but we have agreed to split it eenly if there is anything left. Why won't we be forced to pay her Lowes and small loan debts with the insurance money?

Yes, I am pretty sure we can make the house payments without falling behind, and yes, the insurance and such is included in the house payment. I was planning to call bank of America tomorrow and tell them my mother has passed on, are you saying i shouldn't do this?

I have not planned on moving anywhere yet as I don't have enough money to move and have no where to go anyway. I guess i would have to find a mobile home or apartment to rent or something. For my part I would like to just stay here, even though it would be a struggle. Isn't it against the law not to tell Bank of America that my Mom has passed?

Can bank of America let us stay and make the payments if they want to and think that is the only way they will make thier money on this place, even though I don't have the credit to buy this place? I definitely need to know if i should call them tomorrow and whether I should make a house payment on the 5th or not. I was just going to ask them what they want me to do, to make a payment or not.

If you do not call Bank of America and if you continue to pay the mortgage payments they will not bother you. They would rather see the mortgage paid than to foreclose on the home. If you officially inform them of her death then they will have little choice but to call the loan and then foreclose.

The beneficiaries of life insurance policies are not legally required to use the money to pay off the debts of the deceased.

 

[nextwife]

The value may eventually come back, and you'd need to pay to live anywhere, so it may make sense to just keep paying the payments and stay. If there is no equity, other creditors will not "go after" the house.

I agree that if you just keep paying BoA won't care or take any action.