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Probate

Wednesday’s need-to-know money news

February 10, 2016 By Liz Weston

Zemanta Related Posts ThumbnailToday’s top story: The key tax changes for 2015. Also in the news: Costly mistakes that can destroy your credit, smart estate-planning steps to avoid probate, and why combining your finances in a relationship might be a bad idea.

Key 2015 Tax Changes to Know About
Don’t wait until the last second.

5 Smart Estate-Planning Steps to Avoid Probate
Protecting your assets.

4 Costly Mistakes That Can Destroy Your Credit Score
Small mistakes that can cause major damage.

When Combining Your Finances In a Relationship Might Be a Bad Idea
What to consider before taking that big step.

Filed Under: Liz's Blog Tagged With: 2015 taxes, couples and money, Credit, Credit Score, Estate Planning, Probate, tax changes, Taxes

Q&A: Transferring property from a deceased relative

August 25, 2014 By Liz Weston

Dear Liz: My mother passed away unexpectedly in late 2008. She had a mortgage, and the house was under her name only. She didn’t leave a will. My family is still paying the loan, and the company does not know my mother passed away. We don’t have a lot of money and we need advice on how to get the house under my sister’s name (she has good credit). We need to get the loan modified since the monthly payment is almost $1,000 and only about $70 goes toward the principal.

Answer: Your mother may not have created a will, but your state has laws that determine what was supposed to happen after her death. Lying to the mortgage lender is not one of the legal options.

Federal law allows mortgages to be transferred to heirs. (Without a will, those heirs usually would include a surviving spouse and the dead person’s children.) Transfers because of death typically are exempt from the due-on-sale or acceleration clauses that otherwise would allow the lender to demand full payment.

To get the mortgage transferred, however, you usually need to have started the probate process.

At this point, you should consult a mortgage broker about the likelihood of getting a refinance or a loan modification. If the home is deeply underwater, it may not be possible or worth the effort. If foreclosure is likely, it would be better not to transfer the mortgage as the heirs’ credit would suffer significant damage.
If your plan is feasible, however, then you’ll need to consult a probate attorney. You may not have a lot of money, but you need to pool what you have to hire someone who can dig you out of this mess.

Filed Under: Q&A, Real Estate Tagged With: Inheritance, Probate, q&a, real estate

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