Options for Refinancing a Mortgage on an Inherited Property

Services for Real Estate Pros with Think Glink Media

If you've inherited a property, you may be considering a mortgage refinance. I received a question from a reader whose son passed away, leaving her and her husband with his condo. Should they refinance the mortgage on this inherited property?

Q: My son purchased a condo in August, 2008. He paid $240,000 and put down 20 percent in cash. Similar properties are now selling for about $200,000. My son passed away in June leaving no will. After a period of 60 days, our county court signed over the title to me and my husband.

The condo is rented out and we are making the mortgage payments. What are our options for putting the mortgage in our name without refinancing since we would have to put money into it to avoid paying mortgage insurance?

A: My condolences on the loss of your son. Since you inherited the property from your son and since you're family, the lender may not have the right to call the loan in – that is to require you to pay back the loan.

You may not need to do anything more than keep paying the loan and stay current. In some family situations when there is a death in the family, lenders may be required to allow the surviving members to keep the existing loan.

To read more of my answer, including what to do if the property is worth less than what is owed on the mortgage, see the full article at http://www.thinkglink.com/article/2010/10/29/options-for-refinancing-mortgage-on-inherited-property.

Comments (1)

Dan Edward Phillips
Dan Edward Phillips, Humboldt and Del Norte Counties, CA - Eureka, CA
Humboldt and Del Norte Counties, CA

Good Morning Ilyce, good question to consider, thank you for your input!

Nov 02, 2010 02:38 AM

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