Am I responsible for my deceased mother's usda loan after my brother signed the house over to me? No contact from them for 7 years of me trying.
Asked on Jul 25th, 2025 on Foreclosures - North Carolina
More details to this question:
My mother died Feb 2018. She left her house to my brother but he didn't want it and signed it over to me. I have the original deed to prove that. When we did that I sent in the paper work to take over the USDA loan but that was the time when the government shut down. My paperwork was never processed through. It stopped at a customer service. I have tried calling for the past 7 years to try and find out what I need to do to get the ball rolling to no avail. No one would call me back nor would they answer. I even went to the office in Jefferson on a week/work day and not a soul was there. I've gotten no phone calls, no bills, no nothing from them. Until about a month ago. I got, well my mother got a foreclosure letter and the past due amount is for 7 years. I'm self employed. I take home repair jobs as they come. No taxes have been filed for a couple of years because of this. My name is on the deed for the past 7 years. Squatters rights. Do I have to apply for the loan assumption?
Unfortunately the lien (deed of trust) on the home is still enforceable up to 10 years after the loan matures for a standard mortgage, and debts owed to the government are even longer. They have the right to foreclose, but they cannot force you to pay any deficiency if the sale is not enough to pay off the loan. Your best bet would probably be to apply for your own mortgage to pay off USDA. You could also consider filing Chapter 13 bankruptcy which could give you up to 5 years to either pay off the loan or sell the house.
This is general legal advice only. You do not have an attorney-client relationship with Attorney Lynn E. Coleman without a signed retainer agreement and payment of any applicable fees.
Consumers can use this platform to pose legal questions to real lawyers and receive free insights.
Participating legal professionals get the opportunity to speak directly with people who may need their services, as well as enhance their standing in the Lawyers.com community.