Inheriting a Mortgage
There was a recent article in Fox News about inheriting a mortgage. This is a common issue which we have previously dealt with. Each situation is unique. There are several questions to be answered: what do the survivors want, is there a will, is there more than one person on the mortgage, do the survivors want to keep the house and payoff the mortgage, are the mortgage payments behind, is there more equity than debt in the house, is there a reverse mortgage in place?
The most important question to be asked is what does the survivor(s) want? If they want to sell the house and pull out the equity then depending on how the house is titled, trust vs. personally, the house is sold either regularly or through the probate court. If the survivor(s) want to keep the house then the trust deed needs to be examined, the status or the mortgage needs to be determined and based on the answers to the questions listed above, a course of action can be laid out to keep the house.
When homeowners takes out a mortgage they sign a trust deed. In Nevada if the payments are not made the lender can foreclose on the mortgage pursuant to NRS 107 et seq. In Nevada we have what are called “non-judicial” foreclosures. This means court intervention is not needed to foreclose on a property so long as the legal requirements are met.
If you have any questions, please do not hesitate to contact us.