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Father died, I am on the deed but not on the mortgage. Loan has never had a late payment. Must the bank let me assume the loan? If

If so, what wil the closing costs be? I have made all the payments on the loan. by susantokles821 from Kissimmee, Florida. Oct 21st 2016 Reply


Dan Paladin (dpaladin)
#1 ranked lender in California - 442 contributions

Not all loans are assumable, typically conventional is not. So you would have to check the loan docs to verify. Otherwise you would be doing a standard refinance with those related costs. Consult with your local mortgage banker who should be able to advise you.

Oct 21st 2016
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Dan Paladin: I think you may be mistaken. My question was what would closing costs be, if any. It is my understanding that "the Garn-St. Germain Depository Institutions Act of 1982 allows relatives inheriting mortgaged homes to take over their mortgages. Under Garn-St. Germain, you won't need to refinance your deceased parent's mortgage or even assume it. Just notify your deceased parent's mortgage lender that you're inheriting your parent's home, will be living in it, and will be making the mortgage payments." I have been making all the payments, even when my dad was alive.

Oct 21st 2016
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Dan Paladin (dpaladin)
#1 ranked lender in California - 442 contributions

I see as for the costs, you would have to speak to your lender as costs vary from lender to lender. In your situation I would not be able to estimate what fees would be applicable. You lender would be the best source for the fees and costs if any. You could just keep making the payments as you have....

Oct 21st 2016
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,000 contributions

YES.. it's the law.. in fact, even if you were not on the deed, they would still have to allow you to assume it so long as you were the heir to the estate. The " Garn-St. Germain Depository Institutions Act" of 1982 specifically prohibits lenders from forcing a sale because of the death of the borrower.. and they must allow the heirs to continue making payments.. additionally, The CFPB recently issued an interpretive rule that helps an heir take over a deceased borrower's mortgage after inheriting a home. Specifically, after the original borrower dies, the person who inherits the home may be added to the mortgage as a borrower without triggering the Ability-to-Repay rule... As far as closing costs.. there isn't any since you are not taking out a new mortgage.. however, if you are assuming the existing mortgage, then the lender might charge you a transfer fee, probably not more than $300-$400.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Oct 24th 2016
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