My mother has left me her house in her will. What are the steps in claiming that house?
When someone inherits a house with a mortgage, the process of claiming it involves several steps, and the specifics can depend on laws in the relevant jurisdiction (which could vary by country or state). But, the will must go through probate, a legal process where the court validates the will and authorizes the executor to distribute the estate's assets.
Next, the heir needs to determine if the mortgage transfers with the property. In most cases, inheriting a house doesn't automatically make the heir personally liable for the mortgage debt unless they choose to assume it. However, the property itself remains subject to the lien (the mortgage).
The heir or executor should notify the mortgage lender of the original owner's death, providing a death certificate and proof of inheritance (e.g., the will or court documents from probate).
The heir might be able to assume the mortgage. The heir can take over the existing mortgage payments, but only if they qualify for the mortgage. So make sure your debt is low and credit score high.
If the heir wants different loan terms or can't afford the current payments, they could refinance the mortgage into their own name if they qualify.
If the estate has enough assets (cash, life insurance, etc.) or the heir has personal funds, they could pay off the mortgage entirely.
If the heir wants to keep the house, they'll need to manage ongoing costs (mortgage payments, property taxes, insurance, maintenance). If they can't or don't want to, they could sell the house.
If sold, the mortgage would typically be paid off from the sale proceeds before the heir receives any remaining funds.
There may also be tax considerations, so be sure to contact a tax professional.
Whether you decide to keep the house or sell, be sure to keep paying the mortgage so there will be no foreclosure.