How does mortgage companies work when a person dies?
May 21, 2008 by admin
Filed under Questions and Answers
twister382836 asked:
My mom and sister are both named on the mortgage. Payments are still being made. My mom just passed and my sister does not have a job because she was caring for our ailing mother.
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My mom and sister are both named on the mortgage. Payments are still being made. My mom just passed and my sister does not have a job because she was caring for our ailing mother.
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FRANK Mortgage Broker on Sat, 24th May 2008 3:03 pm
Mortgage payments are still due. The lender should be advised of the death of one of the borrowers. In addition, your sister should make an attempt to have the payments temporarily adjusted.
Ed Atun on Mon, 26th May 2008 1:13 am
If a death stopped the mortgage payments, no mortgage company would ever loan anyone a nickel. We are all going to die. Your mom’s “estate” owes the money.
If someone doesn’t pay the mortgage payments, the bank will take the house. The sheriff will come out and change the locks.
Usually there is money in the house. Almost always worth keeping.
Landlord on Wed, 28th May 2008 8:24 pm
It sounds like your sister needs to sell the house ASAP, or get herself a job to pay the mortgage, otherwise it be foreclosed.
Jon S on Sat, 31st May 2008 6:00 am
I’m sorry about your mother. The mortgage will still need to be paid I’m sorry to say…unless your mom had life insurance. And I hope she does.
Mortgage protection insurance that is super inexpensive–and it basically pays off the mortgage when the primary earner dies. If someone buys a home worth 100K–one needs a 100K policy. Just match the mortgage to the term policy and you’re set. A family will never have to worry about mortgage payments etc.
In most families, when the primary earner dies the family will lose the home because they simply can’t afford it. A simple term life policy to pay off the mortgage–or mortgage protection insurance is critically important.