Posted on: 17th Dec, 2007 10:26 pm
my mom amd myself owned a townhouse together with a quit claim deed with rights of survivorship. my mom passed away however the townhouse is mine but the mortgage is in my moms name. do you think i can assume the mortgage? i have been paying all along with a joint checking account that was in both of our names.
I think it is important to talk to the lender as early as possible. Since the title has passed down to you, the lender should give his consent to transfer the mortgage in your name.
If you had been making the payments throughout and if you can prove that you are capable of doing that then I don't think the lender has any points to disagree.
If you had been making the payments throughout and if you can prove that you are capable of doing that then I don't think the lender has any points to disagree.
actually, unless the lender knows about your mom's passing, you could simply continue to make payments and maintain the property.
refinancing is a fair possibility, but not necessarily (depending on the terms of the existing loan). your credit report will not reflect, i imagine, the history of payments, but that should not cause you difficulty long-term. keep your records showing that you make payments, and future lenders would consider that on your behalf. if your real estate tax payments are separate from the mortgage, keep those payment records as well - it will serve you well in the future.
refinancing is a fair possibility, but not necessarily (depending on the terms of the existing loan). your credit report will not reflect, i imagine, the history of payments, but that should not cause you difficulty long-term. keep your records showing that you make payments, and future lenders would consider that on your behalf. if your real estate tax payments are separate from the mortgage, keep those payment records as well - it will serve you well in the future.
Most mortgage loans do not have an assumption clause but see if you can find the original paperwork when the mortgage was taken out by your mother to see if there is an assumption clause. You may be able to call the lender and ask them if it does have one. If there is no assumption clause then you would need to refinance. Rates are pretty low right now so it might turn out to be a better deal to do it that way. A 30 year fixed rate mortgage is down to 5.50% right now.