# Home inheritence question **URL:** \ **Category:** In My Humble Opinion\ **Created:** [December 18, 2014, 12:30pm UTC](https://boards.straightdope.com/t/home-inheritence-question/707564 "2014-12-18T12:30:36Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Henryunderborn](https://avatars.discourse-cdn.com/v4/letter/h/58f4c7/32.png) [@Henryunderborn](https://boards.straightdope.com/u/Henryunderborn)\ **Post date:** [December 18, 2014, 12:30pm UTC](https://boards.straightdope.com/t/home-inheritence-question/707564/1 "2014-12-18T12:30:36Z")
If my parents left me their house when they died, with a mortgage still on the house, and I have been found to have unsatisfactory credit, where I can’t get my own mortgage; what sort of complications / restrictions would come up for me receiving the house? ---
**Author:** ![Fear\_Itself](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/fear_itself/32/19637_2.png) [@Fear\_Itself](https://boards.straightdope.com/u/Fear_Itself)\ **Post date:** [December 18, 2014, 12:41pm UTC](https://boards.straightdope.com/t/home-inheritence-question/707564/2 "2014-12-18T12:41:40Z")
If you can’t get a mortgage, it sounds like you have two options: 1. Pay off the existing mortgage in cash from your savings, and keep the house. 2. Sell the house and pay off the mortgage. ---
**Author:** ![bob\_2](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bob_2/32/3341_2.png) [@bob\_2](https://boards.straightdope.com/u/bob_2)\ **Post date:** [December 18, 2014, 2:36pm UTC](https://boards.straightdope.com/t/home-inheritence-question/707564/3 "2014-12-18T14:36:35Z")
Surely, most people carry insurance to pay off a mortgage to avoid leaving debts to their estate. ---
**Author:** ![yellowjacketcoder](https://avatars.discourse-cdn.com/v4/letter/y/4bbf92/32.png) [@yellowjacketcoder](https://boards.straightdope.com/u/yellowjacketcoder)\ **Post date:** [December 18, 2014, 2:38pm UTC](https://boards.straightdope.com/t/home-inheritence-question/707564/4 "2014-12-18T14:38:00Z")
> [@bob\_2](#): > > Surely, most people carry insurance to pay off a mortgage to avoid leaving debts to their estate. Plenty of people have no life insurance and no plans to get some. I would think that if your parents died with a mortgage still on the house, you could take over the mortgage without a credit check. It’s not like the bank is going to check your credit before they let you continue paying a loan for someone else. ---
**Author:** ![Lord\_Feldon](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lord_feldon/32/341_2.png) [@Lord\_Feldon](https://boards.straightdope.com/u/Lord_Feldon)\ **Post date:** [December 18, 2014, 2:41pm UTC](https://boards.straightdope.com/t/home-inheritence-question/707564/5 "2014-12-18T14:41:26Z")
> [@yellowjacketcoder](#): > > I would think that if your parents died with a mortgage still on the house, you could take over the mortgage without a credit check. It’s not like the bank is going to check your credit before they let you continue paying a loan for someone else. You can’t “take over” someone else’s mortgage like that. ---
**Author:** ![Si\_Amigo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/si_amigo/32/2877_2.png) [@Si\_Amigo](https://boards.straightdope.com/u/Si_Amigo)\ **Post date:** [December 18, 2014, 2:41pm UTC](https://boards.straightdope.com/t/home-inheritence-question/707564/6 "2014-12-18T14:41:33Z")
> [@bob\_2](#): > > Surely, most people carry insurance to pay off a mortgage to avoid leaving debts to their estate. The key here is most people. But yes, the OP should look into the specifics of the mortgage agreement and find out if the parents had kept up to date on their escrow payments, taxes, second mortgages and so forth. You really don’t know what people have been hiding in the later years until you go through their estate. I’ve known people to tell their grandkids to go ahead and run their credit cards while they were lying in bed dying of cancer. ---
**Author:** ![Telemark](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/telemark/32/372_2.png) [@Telemark](https://boards.straightdope.com/u/Telemark)\ **Post date:** [December 18, 2014, 2:46pm UTC](https://boards.straightdope.com/t/home-inheritence-question/707564/7 "2014-12-18T14:46:00Z")
It appears that there’s a provision in the law making it easier to assume the mortgage of an inherited property. > **[Can You Assume a House Loan After a Parent Dies?](https://www.weekand.com/home-garden/article/can-assume-house-loan-after-parent-dies-18042774.php)** > > The death of a parent ranks high on the list of life's most stressing events. When a... Look [HERE](http://www.law.cornell.edu/uscode/text/12/1701j-3) - I think this is the relevant section of law. ---
**Author:** ![Lord\_Feldon](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lord_feldon/32/341_2.png) [@Lord\_Feldon](https://boards.straightdope.com/u/Lord_Feldon)\ **Post date:** [December 18, 2014, 2:47pm UTC](https://boards.straightdope.com/t/home-inheritence-question/707564/8 "2014-12-18T14:47:26Z")
> [@Telemark](#): > > It appears that there’s a provision in the law making it easier to assume the mortgage of an inherited property. > > [http://homeguides.sfgate.com/can-assume-house-loan-after-parent-dies-55090.html](http://homeguides.sfgate.com/can-assume-house-loan-after-parent-dies-55090.html) Huh. I’d never heard of that even being possible. So I guess you can “take over” someone else’s mortgage sometimes. ---
**Author:** ![Telemark](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/telemark/32/372_2.png) [@Telemark](https://boards.straightdope.com/u/Telemark)\ **Post date:** [December 18, 2014, 3:12pm UTC](https://boards.straightdope.com/t/home-inheritence-question/707564/9 "2014-12-18T15:12:22Z")
> [@Lord\_Feldon](#): > > Huh. I’d never heard of that even being possible. So I guess you can “take over” someone else’s mortgage sometimes. It used to be more common - my parents took over the mortgage of the house we bought in MA - it was a 1 year old house so there hadn’t been much activity on the loan yet. But it’s become harder and harder to do this, which some exceptions as noted in the law. ---
**Author:** ![kayaker](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kayaker/32/441_2.png) [@kayaker](https://boards.straightdope.com/u/kayaker)\ **Post date:** [December 18, 2014, 5:04pm UTC](https://boards.straightdope.com/t/home-inheritence-question/707564/10 "2014-12-18T17:04:38Z")
In addition, accepting the inheritance is not a given. A friend inherited his mom’s house, but it was horribly upside-down. He spoke to a lawyer, and turned down the inheritance. ---
**Author:** ![md2000](https://avatars.discourse-cdn.com/v4/letter/m/73ab20/32.png) [@md2000](https://boards.straightdope.com/u/md2000)\ **Post date:** [December 18, 2014, 5:23pm UTC](https://boards.straightdope.com/t/home-inheritence-question/707564/11 "2014-12-18T17:23:41Z")
> [@kayaker](#): > > In addition, accepting the inheritance is not a given. A friend inherited his mom’s house, but it was horribly upside-down. He spoke to a lawyer, and turned down the inheritance. But then… doesn’t the estate have to settle all claims before settling everything? So if someone refused the (over-mortgaged) house, presumably any other assets of the estate would be gobbled up to settle as much of that debt as possible. ---
**Author:** ![kayaker](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kayaker/32/441_2.png) [@kayaker](https://boards.straightdope.com/u/kayaker)\ **Post date:** [December 18, 2014, 5:31pm UTC](https://boards.straightdope.com/t/home-inheritence-question/707564/12 "2014-12-18T17:31:23Z")
> [@md2000](#): > > But then… doesn’t the estate have to settle all claims before settling everything? So if someone refused the (over-mortgaged) house, presumably any other assets of the estate would be gobbled up to settle as much of that debt as possible. In the situation I’m recounting, the house was the sole “asset”. ---
**Author:** ![HeyHomie](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/heyhomie/32/207_2.png) [@HeyHomie](https://boards.straightdope.com/u/HeyHomie)\ **Post date:** [December 18, 2014, 6:13pm UTC](https://boards.straightdope.com/t/home-inheritence-question/707564/13 "2014-12-18T18:13:05Z")
This will be happening to me in the next 5-10 years: my father will be leaving me and my sister a crumbling wreck with two mortgages on it, worth significantly less than what he owes on it. I’m going to sign a quitclaim and let the bank and the courts fight it out. ---
**Author:** ![bengangmo](https://avatars.discourse-cdn.com/v4/letter/b/50afbb/32.png) [@bengangmo](https://boards.straightdope.com/u/bengangmo)\ **Post date:** [December 19, 2014, 2:50am UTC](https://boards.straightdope.com/t/home-inheritence-question/707564/14 "2014-12-19T02:50:08Z")
> [@bob\_2](#): > > Surely, most people carry insurance to pay off a mortgage to avoid leaving debts to their estate. In the two countries where I have had mortgages, it is compulsory to have this sort of insurance ---
**Author:** ![bengangmo](https://avatars.discourse-cdn.com/v4/letter/b/50afbb/32.png) [@bengangmo](https://boards.straightdope.com/u/bengangmo)\ **Post date:** [December 19, 2014, 2:54am UTC](https://boards.straightdope.com/t/home-inheritence-question/707564/15 "2014-12-19T02:54:38Z")
> [@yellowjacketcoder](#): > > Plenty of people have no life insurance and no plans to get some. > > I would think that if your parents died with a mortgage still on the house, you could take over the mortgage without a credit check. It’s not like the bank is going to check your credit before they let you continue paying a loan for someone else. Different jurisdictions have different rules, but where I am, it is not “life insurance” that you would be buying. Here, the bank will bundle “mortgage insurance” into you payments, renewing it automatically on an annual basis - if you don’t pay the insurance they will cancel your insurance. Recently a friend of ours had problems getting a mortgage because he wasn’t approved for this insurance (due to prior mental health issues). My father had the two year old mortgage on his house fully paid when my (part time working) mother died unexpectedly of a brain aneurism ---
**Author:** ![Nava](https://avatars.discourse-cdn.com/v4/letter/n/da6949/32.png) [@Nava](https://boards.straightdope.com/u/Nava)\ **Post date:** [December 19, 2014, 4:31am UTC](https://boards.straightdope.com/t/home-inheritence-question/707564/16 "2014-12-19T04:31:51Z")
> [@bengangmo](#): > > In the two countries where I have had mortgages, it is compulsory to have this sort of insurance For me it isn’t: having it lowers my rate, but if I was an idiot I could have refused the insurance and paid .5% more. At the time I still would have been given the mortgage, since it was during the bubble. The insurance I got is a two-fer: a single payment counts as property insurance and has that “if the owner dies or is hurt above 60% disability the insurer will pay up the mortgage” paragraph - and it costs less than that .5% would. But many people can’t count. ---
**Author:** ![Lord\_Feldon](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lord_feldon/32/341_2.png) [@Lord\_Feldon](https://boards.straightdope.com/u/Lord_Feldon)\ **Post date:** [December 19, 2014, 4:56am UTC](https://boards.straightdope.com/t/home-inheritence-question/707564/17 "2014-12-19T04:56:09Z")
> [@md2000](#): > > But then… doesn’t the estate have to settle all claims before settling everything? So if someone refused the (over-mortgaged) house, presumably any other assets of the estate would be gobbled up to settle as much of that debt as possible. That’s possible in some states but not in others. In some, the lender just has to eat the deficiency. ---
**Author:** ![Isilder](https://avatars.discourse-cdn.com/v4/letter/i/cc9497/32.png) [@Isilder](https://boards.straightdope.com/u/Isilder)\ **Post date:** [December 19, 2014, 12:22pm UTC](https://boards.straightdope.com/t/home-inheritence-question/707564/18 "2014-12-19T12:22:49Z")
> [@Lord\_Feldon](#): > > Huh. I’d never heard of that even being possible. So I guess you can “take over” someone else’s mortgage sometimes. If not, the estate can continue as if the person hadn’t died… if the mortgage is paid, the bank can’t foreclose… The main question is whether to accept the ownership - is it possibly a loss making exercise ? Is the amount owed on the mortgage more than the value of the house ? There are ways and means to keep the house… If you need to buy house A, OR pay out the mortgage on house A, but need to sell house B to do so… but you need some time to sell house B… a bridging loan is the type of loan to fill the gap. The banks can explain bridging loans to you… Basically its a higher interest and perhaps can’t qualify as a mortgage even though its for buying houses. (eg government assistance ?tax issues ? that sort of thing. ) ---
**Author:** ![Musicat](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/musicat/32/20189_2.png) [@Musicat](https://boards.straightdope.com/u/Musicat)\ **Post date:** [December 19, 2014, 1:31pm UTC](https://boards.straightdope.com/t/home-inheritence-question/707564/19 "2014-12-19T13:31:37Z")
Assumable loans used to be common without regards to the buyer/seller relationship. I assumed a loan from a non-relative when I bought a home in 1974. But most mortgages specifically prohibit this today – read the mortgage language to be sure. The link **Telemark** gave is news to me, but it certainly bears investigating, and the advice of an attorney is highly recommended. Matters like this are too important to handle without professional advice, and if the situation is simple, attorney’s fees should not be excessive. I would like to expand on this, extracted from the link: > [@](#): > > After inheriting your parent’s home, you might need to obtain a new deed in your own name. Speaking from experience, yes and no. If your deed includes right of survivorship, nothing more is needed than filing a “notice of decedent’s interest” form with the Registrar of Deeds. But that will put the mortgagor on notice and may lead to some more paperwork. Example: In my county, any change of name on the deed, even a minor one, triggers a law requiring a sanitary inspection within one year, which might lead to required, expensive repairs. I went for 20 years after my mother died before filing that notice on the philosophy “why do it if you don’t need to?” I only needed to when I refinanced the house. ---
**Author:** ![md2000](https://avatars.discourse-cdn.com/v4/letter/m/73ab20/32.png) [@md2000](https://boards.straightdope.com/u/md2000)\ **Post date:** [December 19, 2014, 2:04pm UTC](https://boards.straightdope.com/t/home-inheritence-question/707564/20 "2014-12-19T14:04:44Z")
> [@Isilder](#): > > If not, the estate can continue as if the person hadn’t died.. if the mortgage is paid, the bank can’t foreclose.. > The main question is whether to accept the ownership - is it possibly a loss making exercise ? Is the amount owed on the mortgage more than the value of the house ? > There are ways and means to keep the house… If you need to buy house A, OR pay out the mortgage on house A, but need to sell house B to do so.. but you need some time to sell house B… a bridging loan is the type of loan to fill the gap. > The banks can explain bridging loans to you.. Basically its a higher interest and perhaps can’t qualify as a mortgage even though its for buying houses. (eg government assistance ?tax issues ? that sort of thing. ) > [@Musicat](#): > > Assumable loans used to be common without regards to the buyer/seller relationship. I assumed a loan from a non-relative when I bought a home in 1974. But most mortgages specifically prohibit this today – read the mortgage language to be sure. > > The link **Telemark** gave is news to me, but it certainly bears investigating, and the advice of an attorney is highly recommended. Matters like this are too important to handle without professional advice, and if the situation is simple, attorney’s fees should not be excessive. > > I would like to expand on this, extracted from the link: Speaking from experience, yes and no. If your deed includes right of survivorship, nothing more is needed than filing a “notice of decedent’s interest” form with the Registrar of Deeds. But that will put the mortgagor on notice and may lead to some more paperwork. Example: In my county, any change of name on the deed, even a minor one, triggers a law requiring a sanitary inspection within one year, which might lead to required, expensive repairs. > > I went for 20 years after my mother died before filing that notice on the philosophy “why do it if you don’t need to?” I only needed to when I refinanced the house. That was my thought - you can’t transfer title without satisfying the mortgages registered against the deed, I assume? If you die and the property is not in your name, then what? I thought the whole point of the estate was that it had to be wrapped up and settled, debts and all, in a timely manner. If the mortgage is still outstanding, can you close the estate? [Next page](https://boards.straightdope.com/t/home-inheritence-question/707564.md?page=2)