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NO I DON’T KNOW ABOUT MORTGAGES BECAUSE I HAVE NEVER BOUGHT A HOUSE. ALL I KNOW IS THAT IT IS A LOAN YOU PAY AFTER BUYING A HOUSE AND APPARENTLY IT TAKES DECADES(20 TO 30 YEARS) TO PAY IT OFF. BUT JUST CURIOUS, WHAT HAPPENS IF SOMEONE PAYING FOR THE MORTGAGE/HOME LOAN SUDDENLY PASSED AWAY AS IN DIED?????????? WILL THEY LOSE THE HOUSE????????????? WHAT ABOUT THE MONEY THEY HAVE ALREADY PAID FOR THE HOUSE????????????

2 Thoughts on MORTGAGE IS A HOME LOAN?????????? WHAT HAPPENS IF THE PERSON PAYING FOR MORTGAGE DIES???????? HELP TO CLARIFY?
  1. Reply
    Go with the flow
    August 25, 2012 at 5:25 am

    If a person dies and no one wants to take over the mortgage loan, the bank takes the house back.
    Usually a family member will try to sell the home and keep “built up cash”, equity.

  2. Reply
    Monte P
    August 25, 2012 at 5:53 am

    When a person dies, their estate must make all of their debts good.

    So, if we assume that the only debt that the person had was their mortgage, and the only asset they had was the house; what is most likely going to happen is that the executor of their estate will sell the house.

    The funds that come from the sale of the house will first pay off the lender of the mortgage, then they will go towards paying off any other lien holders. Then, the estate will get whatever remaining funds are available.

    The estate will then be distributed to any heirs.

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