Equity loan on inherited house

[helenh_36]

I am in SC. My mother passed in March, leaving me her home in her will. I lived with, and cared for, her since she suffered a stroke in 2012. The house is currently in probate, and there is an outstanding equity loan on the house, which I have continued paying. I have a meeting next week with the credit union that holds the loan. I am planning on selling the house, but am not ready to do so at this time. As long as I make the payment, what is the possibility of them insisting that I sell before I am ready?

 

[adjusterjack]

As long as I make the payment, what is the possibility of them insisting that I sell before I am ready?

Little or none.

Read the loan agreement.

An intra-family transfer is not generally grounds for accelerating the loan.

 

[LdiJ]

I am in SC. My mother passed in March, leaving me her home in her will. I lived with, and cared for, her since she suffered a stroke in 2012. The house is currently in probate, and there is an outstanding equity loan on the house, which I have continued paying. I have a meeting next week with the credit union that holds the loan. I am planning on selling the house, but am not ready to do so at this time. As long as I make the payment, what is the possibility of them insisting that I sell before I am ready?

What AJ said. Although, you really do not need that meeting with the Credit Union, unless you have something else to discuss with them. You need to just keep making the payments.

 

[justalayman]

They can insist all they wish but the law doesn’t allow them to force you to sell it or pay off the loan immediately for that matter. The garn st Germain act prohibits a creditor from calling due a loan where real estate is th security interest for when the debtor dies and it is transferred to certain family members, including a child. Of course that is with the condition the loan is paid as the contract demands.

 

[adjusterjack]

The house is currently in probate, and there is an outstanding equity loan on the house, which I have continued paying. I have a meeting next week with the credit union that holds the loan.

Did you get your court papers appointing you representative of the estate?

Without them you may have a tough time getting the credit union people to give you any information or cooperate with you.

 

[helenh_36]

Thank you all...I'm breathing a little better now. Yes, adjusterjack, I have the paperwork from the probate court. That's what they asked for me to bring.