Death of borrower

[kingpin620]

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

MY FATHER HAD A LOAN WITH USDA AND PASSED AWAY A FEW DAYS AGO.
ME AND MY HUSBAND HAVE LIVED WITH HIM FOR 15 YEARS. MY NAME IS ON THE STATEMENT IN CARE OF. MY FATHER SIGNED A QUIT CLAIM DEED A FEW YEARS AGO AND PUT ME ON TITLE. HE ALSO HAS A WILL WITH ALL PROPERTY AND REAL ESTATE TO GO TO ME. MY QUESTION IS THIS, DO WE HAVE TO REPORT HIS DEATH TO USDA, AND WE WANT TO KEEP THE HOUSE, BUT WERE AFRAID WE WON'T QUALIFY TO REFINANCE DUE TO OUR CREDIT, WHAT SHOULD WE DO? WE HAVE BEEN PAYING ON THE HOUSE FOR OVER 14 YEARS. WE WOULD LIKE TO JUST CONTINUE PAYING ON THE HOUSE UNTIL IT IS PAYED OFF.

 

[John Se]

So do nothing

do nothing, pay the loan. let sleeping dogs lie. Whomever hold the mortgage only really want their money,

 

[Antigone*]

do nothing, pay the loan. let sleeping dogs lie. Whomever hold the mortgage only really want their money,

Are you kidding me That is a ridiculous suggestion. OP, please wait for more credible adivce.

 

[FlyingRon]

Are you kidding me That is a ridiculous suggestion. OP, please wait for more credible adivce.

What's not credible. If the mortgage isn't paid, the bank will foreclose and quit claim or NOT he will LOSE the property.

They can very much just pay the mortgage. Federal law prohibits the bank from calling the loan in this circumstance.

 

[divona2000]

What's not credible. If the mortgage isn't paid, the bank will foreclose and quit claim or NOT he will LOSE the property.

They can very much just pay the mortgage. Federal law prohibits the bank from calling the loan in this circumstance.

Ron - won't OP eventually have problems? OP says her father left all property and real estate to her, but if he just died a few days ago, what about possible creditors who need to be paid from the estate? Credit cards, medical bills...could force the sale of the home?

(I bet the quit claim adding daughter to the house was never filed, or does the USDA allow people to be added to the title if they are not on the mortgage? If she is not properly on the title, would there be higher property taxes to pay, since the Homestead owner is dead?)

 

[cyjeff]

I would also imagine that it is difficult to convince the IRS that a loan not in your name is deductible from your taxes.