Can I inherit my father’s mortgage via an exception to the “due on sale” clause, even though I will not qualify for a loan myself?

My father was killed in an automobile accident 6 months ago. He did not have a Will but because he did not have a spouse, his estate will be divided between my brother and I. He left a large house with some equity but the house still has a large mortgage remaining on it.

Asked on July 25, 2012 under Estate Planning, Washington

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

I am so sorry for your loss.  Yes, you and your brother will inherit the house along with the mortgage and will be able to continue to pay same. Inheritance is an exception to the due on sale clause under the law and the lender can not call in the mortgage or force you to refinance in your name.  Check, though, how you intent to transfer since you and your brother are inheriting together,  Good luck.


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