What happens if the estate can not pay mortgage payment

Get Legal Help Today

 Secured with SHA-256 Encryption

What happens if the estate can not pay mortgage payment

My husband passed away as sole owner of
our home.There is not enough in the
estate to make the mortgage payments.
What would be my options?

Asked on November 28, 2017 under Estate Planning, New Jersey

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

If the mortgage is not paid, the lender can foreclose on the home, whether it is a person who defaults on the payment or the estate of someone who passed away which defaults.
If you want the house, could afford it were it to be refinanced, and you are (presumably) the one who will inherit it, contact the lender and explain the situation and that you intend to refinance it once it goes through probate and is titled to you (you can't refinance until you have title, though you can get the financing lined up and ready to go once you have title). Lenders don't really want properties--they want to be paid. There is a reasonable chance you can work something out where they will give you time to get title and refinance--perhaps this lender will even extend you the financing/mortgage.
If you can't afford the house if you refinanced it and/or do not want it, then let the lender know that you will not be taking it and wish to let them foreclose.


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption