QUESTION
Who is responsible for the mortgage of a donated house?
Asked on Aug 09th, 2016 on Estate Planning - California
More details to this question:
A member of our congregation recently passed away and had wished for their home to be donated to the church. There is an outstanding mortgage of $60,000. The estate will be going through probate, and the family is willing to donate the home.
2 ANSWERS
Edwin K. Niles
Sadly, the owner of the loan doesn't usually care about death, probate, or anything else. They just want their money to be paid on time. If they are not paid, penalties may accrue, and eventually lead to foreclosure.
Answered on Aug 15th, 2016 at 6:25 PM
If the church takes a property subject to a mortgage it is also accepting "ownership" of the mortgage. What is being given is a property subject to a debt. If the deceased was giving his half interest in a property, would the estate have to first buy out the other half interest of course not.
Answered on Aug 15th, 2016 at 5:50 AM