Father passed away without leaving a will

[kmarsh65]

Michigan
I am an only child and my dad passed away 1 year and 1/2 ago. I have been making his house payment since he's passed, but the house is in his name. I obtained probate paperwork to complete, although I don't understand much of it.

My question: what can potentially happen to his house? Will the bank just allow me to add my name once we go through probate? Will the bank force me to sell the house?

I'm not sure what to do. I don't want to refinance his house just to get it into my name. I don't want to live in it. My kids are currently staying there and paying his bills.

Any ideas?

 

[LdiJ]

Michigan
I am an only child and my dad passed away 1 year and 1/2 ago. I have been making his house payment since he's passed, but the house is in his name. I obtained probate paperwork to complete, although I don't understand much of it.

My question: what can potentially happen to his house? Will the bank just allow me to add my name once we go through probate? Will the bank force me to sell the house?

I'm not sure what to do. I don't want to refinance his house just to get it into my name. I don't want to live in it. My kids are currently staying there and paying his bills.

Any ideas?

As long as somebody continues to pay the mortgage, then the bank won't try to sell the house or stop you from putting it in your name. They are not permitted to do so under a law that passed sometime either in the 1980's or 1990's. However if the mortgage doesn't get paid, then all bets are off.

 

[t74]

When real estate is involved, you really need the services of a probate attorney. Get one immediately. Doing it wrong can come back to hurt someone many years from now.

 

[bcr229]

As long as somebody continues to pay the mortgage, then the bank won't try to sell the house or stop you from putting it in your name. They are not permitted to do so under a law that passed sometime either in the 1980's or 1990's. However if the mortgage doesn't get paid, then all bets are off.

That would be the Garn-St. Germain Depository Institutions Regulation Act of 1982. As the heir the OP should be able to get the house deed transferred to his name without affecting the terms of the original mortgage. Definitely get a probate attorney to help.

 

[Taxing Matters]

My question: what can potentially happen to his house? Will the bank just allow me to add my name once we go through probate? Will the bank force me to sell the house?

The bank cannot prevent the estate from transferring the house to you nor do you need the bank's permission to do it. The mortgage contract probably has a due on transfer clause in it that allows the bank to call the entire loan due if title to the home is transferred, but as already noted a provision of the federal Garn-St. Germain Depository Institutions Act of 1982 prohibits lenders from enforcing due on transfer clauses in certain situations, one of which is that the home passes to a child or spouse of the borrower at the borrower's death. Simply put, as long as you continue to make the mortgage payments to the lender and do whatever else the mortgage agreement requires (like keeping insurance on the place and paying property tax) the lender won't foreclose on it.

I'm not sure what to do. I don't want to refinance his house just to get it into my name. I don't want to live in it. My kids are currently staying there and paying his bills.

The other option here is to have the estate simply sell the property, pay off the mortgage, and distribute the cash that's left over.