Inheriting a home

[Jack Wyatt Jr]

Hello BP,

I am hoping you could help us. I am working on trying to keep the interest rate at 2.5% on my mom’s house that we are inheriting now. The property is in a trust but the loan was taken out in my mother’s name. I am the executor. The lawyer talked about notifying the lender about the passing. We are keeping the property. I am concerned that the lender will call the loan due or make us qualify for a new loan at today’s interest rate as non-owner occupied property. If anyone has gone through this or anyone knows what we should do, we appreciate anything you could help with.

Thank you,

Jack

[Joe Homs]

@Jack Wyatt Jr I am very hesitant to answer your questions without telling you up front that I am NOT an attorney.  I am also very sorry for your loss. I have a few questions and comments.  Is the property in a Living Trust?  If so, why do you have an attorney?  How many people are the beneficiaries of the trust.  Are they all in agreement with what you would like to do?  If you are asking about the interest rate, I am going to {assume} that you want to keep the home?  You do NOT need to inform the lender, unless it's a reverse mortgage.  In that case you only have a year or less to pay them off.  If not, you can just continue to pay the mortgage then they will just check off the box they received the money and move on to next month.  Do not file a death certificate on the property as that puts everyone on notice of what happened and is not necessary.

You need to be concerned with Proposition 19.  Someone needs to move into the home to qualify for the exclusion, if not the tax assessor with re-assess the property taxes.  Hope this helps, and remember I AM NOT AN ATTORNEY, so maybe check with another?

Good Investing...