Mortgage on deceased parent's home...

[Westcott]

Dear Sir or Madam:

My father passed away and left a home in both his and his pre-deceased 2nd wife's name. All of my step-brother and step-sisters are happy to sign off on a quit claim so that I can move into the home. He had few belongings and very little wealth so I've written and notarized a affidavit of small estate. However, do I need to have the mortgage transferred into my name or can I continue to pay mortgage and taxes with the existing mortgage terms? If, at some point, I were to decide to move out of the home would I need to transfer the mortgage to my name in order to sell the house?

Any feedback would be very much appreciated. Thanks in advance.

 

[adjusterjack]

There's something you'd better check on before you do the affidavit.

I don't think the small estate treatment includes real estate.

Line 6 of the affidavit refers to the "gross value of the decedent's entire PERSONAL estate."

Check out the first paragraph of the following article:

http://info.legalzoom.com/illinois-small-estate-affidavit-law-21491.html

Don't take my word or the word of Legal Zoom. Talk to a probate attorney before you make a mistake that you can't fix.

I think you will have to probate the house in order to get a deed transferring ownership from the estate to you. Please don't try this without a lawyer. Too many things can go wrong if you do it yourself.

Anyway, yes, you can keep on paying the mortgage and taxes (and should keep on paying to avoid foreclosure) but the mortgage company will want your court appointment as personal representative before it will give out any information about the mortgage as will the tax agency.

As for getting the mortgage transferred into your name, that's entirely up to the mortgage company or bank that holds it. Chances are that the lender will want you to refinance and start from scratch to qualify you financially for a new mortgage. I could be wrong so it couldn't hurt to ask.

You wouldn't necessarily have to transfer the mortgage into your name (or refinance) just to sell the house but, again, without submitting your court appointment to the mortgage company it's unlikely that the mortgage company will release any information that you would need for closing.

I suggest you read your father's mortgage loan contract and make sure that the acceleration clause doesn't apply to inheriting the house. Usually doesn't, but read it make sure.