do banks ever reduce the principal so the beneficiary can pay off the mortgage when the owner dies?
do banks ever reduce the principal so the beneficiary can pay off the mortgage when the owner dies?
My husband died in 2013 and I have been making the payments on our house while waiting for the estate to close. The house is in his name only, he bought it before we were married, and it has a $275,000 mortgage on it. I am the sole beneficiary of the estate.
The payments are large and I have been making them out of the life insurance money. I have enough money to pay it off, but it is a huge chunk, and I have a developmentally disabled child who I would like to save some of the insurance as well as retirement. I do want to keep the house as it has some equity.
My question is, I have read that some banks will reduce the principal in certain situations. How would I go about trying to get this done? The loan was modified a couple of years ago and I'm not paying interest on $38,000 of it as a result, but I'm paying 6.9 percent on the rest, so the payment is hefty. The attorney, who isn't much help, tells me he will close the estate in the next two months,and I understand then the house can be put in my name.
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