What happens if A borrower dies after loan assumption in Tx?

[Eboney Jones]

Got an odd situation. Working with a lady in Fort Worth, Tx who took over payments on a home back in 09. She signed a warranty deed for it and was making regular mortgage payments until the borrower died in 2015. She tried to refinance with the lender but was told she had no interest in the home and that it needed to go to next of kin. She still lives there but hasn’t made payments in almost 5 years. She has a warranty deed that was signed by the previous owner and everything. She wants to sell but I am unsure if I need to track down the deceased owner’s son to do some sort of affidavit saying that he relinquishes his interest in the property or if the warranty deed would take care of that. Any advice? TIA

[Bruce Lynn]

Go straight to the title company to determine who owns the house and what liens there are on it.  

Was the deed filed?

If not she should speak to an attorney about filing the deed.

I am not an attorney and probably don't have all the facts, but if deed was filed, she owns the house, but subject to the mortgage lien and perhaps now a tax lien, plus any other liens out there.   

As @Kyle Mccaw says, it is probably ugly if she hasn't paid anything in 5 years, but still worth looking after.   Due to price increases there could be some equity in the deal if maybe loan was small and depending on how much equity there was when she took it over.   Get the payoff and reinstatement fees and see if it is worth going after.   You just never know.