Property transfer upon passing
Hi,
What happens in the case where a relative passes away and the mortgage is under her name, but the title of the property is under an LLC that she is not a member of? The relative had a living trust and will granting family control should anything happen to her.
We notified the mortgage company and they won't accept the trust documents as valid proof of ownership and are demanding that we get a probate document, a quitclaim or grant deed showing the title granting out.
What are our options without having to go thru probate?
@Ann Baker what is important here is the way the property was titled. If the property is in an LLC or living trust, then you are golden. How was the property placed into the LLC with the loan on it and she not be a member of the LLC? Was it taken subject to the loan? The beneficiaries would have full control over the property. What you need to do is hopefully go to the lender's website (that your relative was using to pay the mortgage) and just make payments to the bank. That is all really, they want. They don't necessarily care about any changes. They can call the loan due now that they know, but that is rare. What are your plans for the property? Are you going to sell it, keep it, rent it out?
Good Investing...
HI Joe, thanks for your reply. The property is titled in an LLC and the relative was a member of the LLC at the time of the transfer. A number of years later, she consented to be removed from the LLC and we had an attorney draft up the agreement. The loan remained in her name since the property was purchased and even after she was removed from the LLC. We plan to keep the property. Been in communication with the mortgagor and even after submitting the trust doc, they say it's insufficient and want a grant deed, quit claim or probate document. Do you think if the grant deed showing the transfer from the personal name to the LLC would work?
@Ann Baker if that's what they want, then I would say yes. I'm surprised they are not asking you or sending you some assignment agreement. That way YOU would be on the hook for the loan. Again, I would just make the loan payments to the bank and call it a day. If your worried about it then give them the grant deed.
Good Investing...
