QUESTION
Will an heir be liable for money owed to house that is currently in reverse mortgage?
Asked on Mar 15th, 2011 on Estate Planning - Florida
More details to this question:
My mother has a reverse mortgage. She will probably have no equity or even possibly negative equity in her house when she passes away. She has a Beneficiary Deed to leave the house to myself and my brother. Question if she owes money on the house when she passes will we be liable? My understanding is that the house would simply go to the bank, is this the case?
2 ANSWERS
1 Award
Yes, if the property is still in the estate when your mom passes and there is no equity in all likelihood you will just sign it over to the mortgage company with no further liability to the estate. However, her estate could still be subject to the high costs and delays of probate even though the property is worthless and your Mom has a valid will. You may want to consider setting up a living trust for your mom to avoid probate.
Answered on Mar 16th, 2011 at 1:19 PM
Trusts and Estates Attorney serving Jacksonville, FL
Partner at
Law Office of David M. Goldman PLLC
3 Awards
No, but whether the estate will be responsible will depend on the terms of the reverse mortgage. Generally they are not able to collect more than what is available from the home.
Answered on Mar 16th, 2011 at 12:27 PM