Probate Estate And Loan

Summary

Probating an estate in West Virginia may notify the bank about the deed change. The bank cant force refinancing unless the loan has a due on sale clause. Consult an attorney for detailed advice.

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My mom passed away and left everything to me there were no other heirs anyway. The house had a home equity loan on it which I have continued to pay and that's what the bank advised her before she died as long as the taxes and insurance were kept up.
Hello Kimberly, I'm sorry for your loss. To guide you accurately, what is your location? Also, did your mom leave a will specific to the house and its loan?
Wv
Hello Kimberly, in WV, as the heir, you may be responsible for the home equity loan if:
- Your mom's estate doesn't cover the debt.
- You're a co-signer on the loan.
Speak with an estate attorney to explore your options.
I know all of this, I worked for lawyers for years.
Understood, Kimberly. It sounds like you're already well-informed. Is there any other specific legal information you'd like me to provide, or any other concerns you have about this situation?
My question is if I do finally probate the estate so that I can get the homestead exemption on the taxes, will the bank be notified that the deed has been changed? If so, can they force me to refinance that loan
In West Virginia:
- The recording of the new deed after probate may notify the bank about the change.
- The bank can't force you to refinance unless the loan contains a "due on sale" clause.
- Consult an attorney for a detailed understanding of the loan terms.
Thank you. The bank had told my mother the same thing basically, the bank doesn't want the house, they just want their money lol
You're welcome, Kimberly. If you have any other legal questions in the future, don't hesitate to ask. It's always good to be informed and prepared.
It sure is and there are a couple of things that I wish I had known before she passed away but unfortunately I didn't know and we should have talked and more detail with an attorney. Thank you for your help
I'm sorry for your loss, Kimberly. It's never easy to navigate such situations. If there are any other questions or legal areas you'd like to know more about for future reference, don't hesitate to ask.