Shortcut Navigation:

Question for the Money Doctors

Question submitted on Nov 28, 2015.

Question

my father died in 2008 and in his will he split everything 50 /50 between my mother and I ...they where still married. my mother is now paying the hospital bills he left us with no life insurance coverage because he did not pay the last couple premiums since he was sick. since he left the house to both of us how does that work if it has a home loan that is near forcloser its not in my name but the house is

Answer

A mortgage will stay in effect when a house passes to a surviving spouse, including when equity is shared between the surviving spouse and children.  If the beneficiaries are unable to continue the payments, the lender will initiate the foreclosure process.  

As you are still only “near” foreclosure, you may want to try selling the home and use the proceeds to pay off the mortgage and hospital bills.

Contact an estate attorney who will be able to provide advice specific to your situation.


For additional information visit http://www.360financialliteracy.org/

close