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Updated about 1 hour ago on . Most recent reply

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52
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Palmer Thomas
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52
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Bought a house with seller financing. Now the seller (mortgage holder) has died.

Palmer Thomas
Posted

I purchased a house a couple of years ago and a portion of the purchase price was done with seller financing.  The seller holding the mortgage recently passed away.  I was contacted by his ex wife and son.  They are supposed to send me all the legal documents needed to transfer the payments to whomever is inheriting the mortgage.  Is there anything specific I need to be on the lookout for or anything I should do to make sure I'm legally covered?

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3,126
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Matt Devincenzo
  • Investor
  • Clairemont, CA
2,640
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Matt Devincenzo
  • Investor
  • Clairemont, CA
Replied

How have you been making payments so far, to a servicer or directly to the seller? 

If a servicer, continue paying as agreed and allow the servicer to sort out the issue on their end. If directly to the seller, then you need to ensure that the payment is made, but also that it is made to the person who is entitled to it. If for some reason they can't get this sorted out by the next payment date, you should figure out how to physically escrow that payment somewhere...this at least protects your payment until you're confident who it is supposed to go to in the future. 

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