Can someone take over the loan of a deceased person?

UPDATED: May 31, 2012

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Can someone take over the loan of a deceased person?

A friend’s husband died and her name is not on the deed or mortgage. She wants to leave the house and let it go to foreclosure. We would be intererested in taking over the loan ourselves. Would this be possible?

Asked on May 31, 2012 under Real Estate Law, North Carolina


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

Answered 10 years ago | Contributor

I am so sorry for her loss and for yours.  No, you can not.  Generally speaking, a party that inherits real property when a person passes away has a right to continue to pay the mortgage and live in the home with out the bank calling in the loan (due on sale clause).  It is one of the few exceptions to that clause.  But you can not assume or buy that right. I would have her speak with ana ttorney about what you can do here.  Possibly transfer it to her and do a rent to own if the loan allows.  One really needs to read the fdocuments involved.  Good luck.

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