How can co-owner refinance a mortgage that in solely in the other cowner’s name and they are deceased?

UPDATED: Oct 1, 2022

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How can co-owner refinance a mortgage that in solely in the other cowner’s name and they are deceased?

My mother is on the deed but the mortgage is under the estate of her deceased husband. She would like to refinance the loan but the bank tells her that’s not possible. Does that seem strange? Is there a solution out there?

Asked on May 11, 2019 under Real Estate Law, Florida


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

The solution is to not refinance this loan, which cannot be refinanced because the mortgagor (the husband) is deceased (deceased people cannot take out loans or modify existing loans) but to take out a new loan from a different bank and use it to pay off the existing loan. If the home is currently in the estate's name, it is the estate that would have to take out the loan (which means that the estate's executor or personal representative would have to be the one who, in the estate's name, applies for it). It also means that plans and provisions would have to made to then again take out another new loan to pay off and replace the loan to the estate when the estate is closed out--the new loan to be taken out by whomever inherits the home (presumably your mother). Your mother and the estate's executor/personal representative (if your mother is not that person) should meet with a mortgage broker or consultant (whether an independent one or one in a bank) about how best to do this.

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 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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