What should we do about a mortgageon property that weinherited?

UPDATED: Jul 5, 2011

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What should we do about a mortgageon property that weinherited?

My mom left her house to 3 of her children. She had a mortgage on the house. If we do a quickclaim deed, can we leave the mortgage in her name? If not how long do we have to get our own mortgage?

Asked on July 5, 2011 under Real Estate Law, Michigan


M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Beneficiaries who inherit mortgaged real estate become responsible for paying the mortgage. That is unless the mortgage has what is known as an "acceleration clause" that is triggered by the death of the mortgagor. If there is no such clause, then the lender is required to continue to accept the monthly payment until the maturity date.  This benefits those who inherit since they do not have to go through the lender's application process and qualify for a new mortgage.

Note:  An acceleration clause is a provision in a mortgage that allows a lender to demand immediate payment in full of the outstanding balance of the mortgage if certain events occur. For instance the sale of the property, late or partial payments payments.  As a general rule however, it is rare to find acceleration clauses that are triggered by the death of the property owner.

Bottom line, as long as the mortgage payments are being made on time, you should all be fine. Although you may want to consult about this directly with a real estate attorney in your area.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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