Equity Home Loans

Does Mortgage/Home Ownership Automatically Transfer?

A hypothetical question. If a disabled person lives with his/her parents, in a home they own and/or are on the mortgage for, what happens to the home when the parents die? If the parents leave the home to their disabled son/daughter in their will, can that son/daughter continue living in that home, as long as the mortgage & other home expenses (property tax, maintenance) is paid (either through the estate/inheritance or other income), or does the disabled son/daughter have to get the mortgage (& credit check) in their own name to live there? In other words, if the parents leave the house and estate to their disabled child so he/she is "taken care of", does the home ownership & any mortgage transfer automatically? Or upon the parents deaths will the bank/mortgage company require the disabled person to either vacate the home or go through a credit check to apply for a mortgage in their own name? Would the Home Ownership Transfer Automatically upon Death? A little more info, if anyone needs it to answer/thinks its important. The person who is disabled does NOT need help, with bathing, dressing, or any daily living needs, so they do NOT need a group home, or nursing home. He/She is able to manage the tasks of daily living (laundry, shopping, etc.) & though due to the disabilities, he/she cannot currently drive (the parents are getting their child help to resolve this) with disabled transport services, buses, etc., the disabled person is able to get around as needed. Therefore there is no need for them to move into a nursing home. However, as a result of the disabilities, as well as other issues, this disabled person has LOUSY credit, and no way would qualify for a mortgage on their own. If necessary, the parents have considerable savings and investments both in their own names as well as in trusts for their child - more than enough to fully pay off the house, and then some (actually a LOT more!)

Public Comments

1. Total Real Estate attorney question. It's easy to put someones name on the title, and transfer ownership, but all the other questions are very serious that only a professional can answer truthfully.
2. Assuming that all expenses continue to be taken care of, and the transfer is in the parents' will, basically, yes. It would be part of the probate/estate settlement process.
3. hypothetical scenario- Whether she is on title or not, she will have the same rights based on the Will if there is any. If no Will she will have to the process of "In Estate will, this will need to go through probate and after that she will be appointed as the personal rep. if she can act on that capacity if not they will appoint a person that can exercise on that capacity. Once a Personal Rep. has been appointed then she/he will have the ability to either buy (sell the house to her self) or to liquify other accounts to pay off the mortgage or simply sell the property. Now being on title now will save you some money and time when the time comes. If there is a Will that has been probated then she will already be authorized and will be able to just follow the same procedures as mentioned before. If a mortgage is owed and there is not enough money in their estate to pay it off then she will have the choice of sell it to her self or to refinance, I would recommend to refinance. Since she is disabled, a family member might have to go in the loan with her for the approval. Either way you need to contact a Real Estate Attorney to give you professional advice, if you can pay for it you can contact HUD.com/gov and they will refer you to a qualified professional at no charge, you should take advantage of it since our tax dollars pay for it. Hope this helps a little