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You Inherited a House with a Mortgage – Now What? - Quicken Loans Zing Blog

The death of a loved one is an incredibly difficult time. Not only are you emotionally drained, but after the funeral you have the added anxiety of sorting through legal documents, financial information, and the last will and testament of the deceased. You want to be sure you take care of any financial loose ends, and that can turn into an overwhelming task.

One obstacle some may have to deal with after the death of a loved one is a mortgage. You might already have a home loan payment, and you simply can’t afford to take on another. So what options do you have, and what do you do next? We’ve got a few tips and things to consider when managing an inherited mortgage.

Determine who takes over the home

If there was a co-signer on the mortgage, that person is now responsible for making the mortgage payments. In the event a home is left to an heir via a will, the heir(s) – whether there are one or more people – is now responsible for the mortgage. It’s important that you establish who’s responsible for the loan, because this person (or group of people) will work with the lender to get details and information about the mortgage.

Gather all the mortgage documents

Hopefully your loved one kept a file of their mortgage documents. At the very least, try to find a document saying who services the mortgage. You, or your family attorney, will need to call the servicer to notify them of the death. Chances are they’ll want a copy of the death certificate before you can move forward. After verifying the death and updating documents, the servicer will then be able to tell you how much is left on the mortgage and how much the monthly mortgage payment is. At this point, you’ll have the information you need to decide how to deal with the remainder of the mortgage.

Start making the loan payments

First and foremost, if you decide to keep the home, you’ll need to begin making the mortgage payments. Otherwise, it may go into foreclosure.

Pay the mortgage off

If you can pay the mortgage off completely, that’s another option (and probably the best) to deal with an inherited home loan. With the house completely paid off, you can then keep the property, and maybe lease it out, or you can simply sell the home. Either way, paying the mortgage in full frees the property from a lender and allows you to do what you please with the home.

The home has no heirs or co-signers attached to it

If there’s no co-signer and no one in line to inherit the home, the bank or lender still need to collect on their debt. They usually end up selling the house to try to recoup the debt. Sometimes the amount brought in from the sale of the home doesn’t cover the entire loan balance. If that’s the case, then lender may seize the assets of the deceased to cover the remainder of the loan or simply assume the rest of the debt. This may vary depending on where you live.

Contact a lawyer if you have any specific questions or just feel completely lost; they can help you sort out specific questions. Laws fluctuate from state to state, and we all know how difficult legalese can be to read. Don’t be afraid to ask for help if you need it, and – most importantly – don’t sign or agree to something you don’t understand.

One thing your loved one can do now to help simplify the complicated process of dealing with a mortgage after their death is to get mortgage life insurance. If they pass before their mortgage is paid off, the insurance company will cut a check to pay the remainder of the mortgage, and the home will be paid off.

The time after a loved one dies feels like a whirlwind. Trying to tie up financial loose ends adds extra stress to an already traumatic time. But knowing what steps to take in advance can help alleviate the anxiety you might feel. Just remember to ask for professional guidance if you have any questions, or your gut tells you something isn’t right. It’s better to spend the money and come to the right decision with confidence, rather than guessing and hoping for the best.

Did you inherit a mortgage after a loved one passed? Do you have any other tips to help readers? Share them below!

 

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This Post Has 169 Comments

  1. My parents have a will leaving everything to me, including their home. The home is basically the only asset they have. They have a conventional loan that states on the paperwork “non-assumable” which doesn’t sound good to me but I know NOTHING about a mortgage. There’s about $100,000 left on the mortgage.
    I see a lot of the answers posted state to just keep making the mortgage payments, as the mortgage company just wants their money, which is no problem but what happens once the loan is actually paid off and the title is in my parents name?
    Will they take the home? Can I never sell? I have no idea what to do but want to be prepared beforehand so I know what I’m up against. I doubt I would qualify for my own loan because even though my credit is about 750 I only make about 30,000 annually. Any guidance is greatly appreciated.

    1. Hi Stacey:

      I’m going to take the simplest part first. Since you are named in the will is the sole beneficiary, if they pass, you get the house. The title becomes yours. As far as the mortgage, the non-assumption clause should apply in the case of inheritance. The non-assumption clause is there so that no one takes over the original mortgage in the event that the property is sold. You don’t have to assume the mortgage formally in order to keep making the payments. However, if you were ever to refinance, you would have to qualify for the mortgage based on factors like credit and income. You can sell the property at any time. I hope this helps!

  2. My mother passed away and I now am on the house as the joint tenant with survivorship rights and I am not on the loan. I want to go on the loan and get a refinance with cash out for repairs (there are a lot to be done) and possibly rent out the home at some point. However with my income, I would not qualify. I would like my husband to be on the loan as well, but he filed for bankruptcy 5 years ago. We have continued to pay our own mortgage, although it is not reflected in his credit report. How hard would it be for us to get a refinance with cash out to fix this house? We are paying this mortgage as well until we can figure it out. (There are also renters in place on another small house on the property) I don’t want to be on this house unless we can get cash out to fix it. The home is worth a good $50,000 or more than she owed) I know that I can walk away and the bank will foreclose, but it is a good opportunity to keep the home. Thoughts?

    1. Hi Shelli:

      I think it would be best for you and your husband to speak with one of our Home Loan Experts before moving forward. You can get in touch with them at (888) 980-6716.

      You probably have options, but I would want someone to be able to go over what all those are. With a bankruptcy, what counts is not when it was filed, but when it was discharged or dismissed. So I think having someone really dig into your situation would be helpful.

  3. My best friend has congestive heart failure and has bequeathed his house to his room mate and me. There is approx $100,000 owing on a mortgage and the property has a Zillow estimate of over $800,000.

    I am freaking. I am also his executor and have no clue how this would be probated or if it’s even possible for him to do this.

    This is as grim a prospect as it was with my Mother. The money isn’t it, I couldn’t care less, I want him around for a long time yet. I also doubt his roommate will want to leave. It all sounds like a tremendous mess just waiting.

    I have had experience with probate handling my Mother’s estate. My friend has had his will drawn up, witnessed and notarized. These are his wishes and I will respect them, but how in the H does this get sorted after he passes ?

    Thanks in advance for your help.

    1. Hi Dave:

      I’m sorry to hear about your friend. I understand this is confusing, but let me try to walk you through it.

      If and when he passes, the whole thing will go through probate briefly, but that part should go fairly smoothly because it sounds like he’s made his wishes as far as his house fairly clear. While that process is taking place, just keep making any existing mortgage payment.

      Once the house is officially in your names, you both have some options. One would be to have his roommate stay in the house. If you don’t want anything to do with the house going forward, you can quitclaim the property to them in exchange for some consideration if that’s the route you choose to take. His roommate can start by calling the mortgage servicer and figuring out what they needs to do to try and get the mortgage in their name. There’s also the option to just continue making the payments going forward, but if his roommate does this, they would never be able to refinance the loan until the property was in their name.

      That’s just one version of the possible scenarios, but since it doesn’t sound like you’re living there, these would be the most likely options. Hope this helps a bit! Good luck to you and your friend!

  4. I inherited my father’s mortgage when he passed away. I currently live in the home and wanting to know can I go and get my own loan for the house so I can close out my father’s estate. The mortgage my father had was a bad rate and I figure I could save a ton of money. I tried to refinance with the current lender but was faced with obstacles like court documents that I do not have cause of estate is still open.

    1. Hi Adam:

      Sorry about your father.

      Unfortunately, you will likely have to wait until the home passes through probate before you can refinance. The title has to be officially in your name. An estate lawyer may be able to walk you through the process in your area. The good news is, once that happens, you can look into refinancing the loan into your own name with any lender. If you would like to go over your options when you’re ready, you can reach one of our Home Loan Experts at (888) 980-6716.

  5. I question has anyone ever experienced this is. I signed a quit claim deed to my mother on a house I co-signed for she is now deceased the house is not paid for and the I’m still paying the mortgage because my name wasn’t removed from the loan someone else is living there and refuse to pay me the mortgage she left a will that has not been probated willing it to my baby sister who passed before my mother and she have 2 heirs I don’t know what to do I can no longer afford to pay that mortgage and my mortgage my question is, do I have a right to sell the house.

    1. Hi Linda:

      Unfortunately, if you quitclaimed the property to your mother, you can’t sell the property because you don’t have the property rights. The house would have to be let go if you couldn’t pay. The one thing you could do is contact the mortgage company and see if they can modify the payment to make it more affordable.. I’m sorry I can’t be more helpful

  6. My father has passed and his ex-wife owns 50% of the home the other 50% is for his 3 children. The plan is to sell. There is still a mortgage owed on the home so when we sell and pay it off then we will divide the profits as above – 50% ex-wife and 50% kids. Is that the correct way? I wasn’t sure if his ex-wife was responsible for more of the mortgage balance than the kids.

    1. You would divide the profits 50%/50% legally. So 50% would go to his ex-wife and the remaining 50% would be divided between the children. Hope this helps!

  7. My mom passed and left me as her only beneficiary. She has a house with a mortgage and some debts. She has life insurance and a checking account with my name on them. I have decent credit, but own my own home. If I turn the home back to the bank, will they come after me for the money or after the checking and insurance?

    1. Hi Jean:

      If you were on the loan, then yes. If you weren’t on the loan, then no. Another option that might be more beneficial would be to sell the home. You would keep any proceeds after the mortgage was paid off. If you do decide to just let it go, I would notify the bank of your intention. Hope this helps!

  8. My mom has a will and has left me everything. She has $117,000 left to pay on the house and has a $100,000 life ins policy for me. However, she has a second on the house. Am I responsible for the second and will there be taxes taken out on $42,000 second?

    1. Hi Mechelle:

      If you were to inherit the house and wanted to keep it, you would have to keep making payments on both the first and second mortgage. However, I can tell you that if you wanted to let the loan go to the bank you wouldn’t suffer from a credit perspective unless you were named on the mortgages. You could also keep making payments until you sold the house and you would keep all the money from after the mortgages were paid off.

      In terms of the tax issues, I really recommend speaking to a tax adviser because every situation is different, particularly when it comes to inheritance.

  9. My sister is living a mobile home she use to live in with her common husband for many years, but he passed away. The house was purchased for them by his mother and she passed away too
    . The morgage is in the mother’s name. My sister still lives there with her children and making monthly payments. She wants to know if its possible to get the morgage in her name

    1. Hi Maggie:

      My condolences for your sister’s husband and mother-in-law. My advice would be for your sister to check and see if the mother-in-law left a legal will that indicated who the title of the home would be left to upon her passing. If there’s no legal will that designates an heir, then the best thing for your sister to do would be to contact the servicer of the loan and continue the monthly payments on the mortgage. The servicer might request some additional legal documentation and verification that your sister will inherit the home. You can read more about that process here. Assuming that your sister’s credit will qualify, she should be able to assume the loan on the home or refinance the loan into her name. I hope this helps.

  10. I have a complicated question. My boyfriend of 22 years passed away Sept,2017. He had a will and left me somethings…one of which was a “life estate’ in the home we lived in. I am not on the mortgage and there is approx. $67,000 left on the loan. I am not in a position to buy the house outright ( my income is only contained to SS.)The children of my boyfriend don’t really want the house. I want to stay here and think I could pay the “rent” with the money I was left and my sister will be coming from out of state to help with part expenses. My question is: can I be forced to move to settle the estate OR…can my son-in-law buy the home at the price of the remaking mortgage and I would rent from him? Any advice would be helpful. Thank you.

    1. I’m not a lawyer and I’m not totally familiar with the term life estate. According to an internet search, it looks like that gives you ownership of the property, but if you’re not sure, I recommend talking to an estate planning attorney. However, assuming you have ownership, the easiest way to do this would be to just keep making the payments. The mortgage company won’t care who is making the payments as long as they are made. Does that make sense? Thanks for reaching out!

  11. I purchased a home with my father years ago. He and I were on the mortgage and title. He and my mom lived there but needed a cobuyer to qualify for the mortgage. When he died my mom remained living there until her death in 2016. I assumed that the house would automatically be mine since I was the only living person on the title and mortgage. I finally have a buyer but have now run into issues with the title as the half my father owned was never properly deeded to my mom or me. I don’t really care about the proceeds but need the home to be sold so I am no longer responsible for the mortgage. Can a sibling hold up the sale of a home that she would only have a possible right by Intastate laws to 1/5 of 50% ? I am worried about losing my buyer.
    Thanks,
    Jack

    1. I’m not a lawyer and this goes beyond any level of expertise that I have. I think you need to get an attorney involved, particularly if you have a sibling challenging it.

  12. My father just suddenly passed away and left no will. I am the executor of his estate. He owned a second property that he rented to my sibling but for all intents and purposes he considers it his house. With other comments here you have had a very consistent answer that the person can continue to live in the house as long as the mortgage is paid. Is this indefinitely? I highly doubt my sibling will be able to qualify for the loan. So does this mean the mortgage company does not care about transfer of ownership as long as my sibling continues to live there and makes the payments? In this scenario how would you actually classify and describe the ownership of the property knowing that no one else will want to assume that ownership?

    1. Hi Bryan:

      The mortgage servicer won’t care who’s making the payments as long as the payments are made. The actual ownership of the property has nothing to do with the mortgage. That’s all decided based on the title. The mortgage is just a lien against the house that’s released when it’s paid off. I would just let them know that your father has passed and that your sibling plans to continue making the payments without assuming the loan at this point.

      Thanks,
      Kevin

      1. We are finding this answer NOT to be true. Wells Fargo, the lender in our case, has accepted mortgage payments but is now coming back (after years of receiving and accepting timely payments) and demanding valid tax information for the deceased/loan holder or they will pursue backup withholding of 30% on any reportable payments we made (retroactive)…lawyer is necessary. We don’t even have the original loan documents to know what the requirements are in the loan and the lender refuses to provide them. I just thought I’d post this because this person who asks the question could get themselves in trouble. In our case Lender is refusing to provide any information to pay off loan.

        1. Hi Chris:

          I’m sorry to hear you’re having trouble. We can’t speak for other lenders. I would certainly talk to an attorney.

  13. Any advice would be greatly appreciated!!.. A friend’s dad passed away leaving a house with two mortgages… All the kids are willing to sign quitclaim over to another. But now a letter from 1st mortgage attorney has come in… How does one consolidate and offer a payout from here? Potential new owners are willing to pay monthly amounts..

    1. Hi Lillian:

      So you have a couple of options here. The easiest thing to do would be to sell the house to the new owners and use the proceeds to pay off existing mortgage amounts and let them get their own mortgage. The other thing you might do is quitclaim it over to them and have them talk to the mortgage companies about possibly assuming the existing loans. They would have to credit qualify and different lenders have different requirements. You could also potentially look to do a cash-out refinance so at the end they would only be paying one mortgage. However, in order to do that before the sale, someone would have to look into refinancing and temporarily take on that debt. I recommend letting the new owners worry about that if they decide to go in the direction of assuming the existing debt.

      Thanks,
      Kevin

  14. I just inherited my mom’s house it needs a lot of work.Also mom took a home equity loan out for 40 thousand dollars am I responsible for that.Im fixing the house up and selling.Am I responsible for all her debt??Thank you for your help in this matter.

    1. Hi Mike:

      Whether you are legally responsible or not depends on whether you’re named on the loan documents. If you are, then you do have responsibility for the loan. On the other hand, even if you’re not responsible, you should keep making the payments so you can get the most possible money out of the house when you sell it. If you don’t make the payments, the lender can take the house back and you don’t get anything. Hope this helps!

      Thanks,
      Kevin

  15. Hi, my wife’s elderly friend left her a house that is still under a VA loan mortgage. She left the house to her in a Will. I was thinking of probating the will and putting it under my wife’s name. Can we can just keep making the payments? Maybe when our credit is up we can assume the loan. Does that sound about right?

    1. Hi Louie:

      You can continue to make the payments. I would just contact the mortgage company and let them know that you’re taking over so there’s a smooth transition. You can also put your wife on the title once it goes through probate and when you’re ready to credit qualify, you can then go and assume the loan properly.

      So in short, you’re taking all the right steps.

      Thanks,
      Kevin

  16. My boyfriend’s father is ill and probably doesn’t have much longer to live. My question is, he put in his will that the house we live in goes to my boyfriend and he also added his name to the title of the house. We both have bad credit and we are scared that when his father passes the mortgage company will take back the house and make us move. Will my boyfriend be able to just continue making the mortgage payments or will we be forced to leave our home.

    1. Hi Katherine:

      If and when your boyfriend’s father passes, you can continue making the payments. As long as the payment gets made, the mortgage company won’t care who is making the payment. One thing you might want to do is see if you can get your credit in order so that you can assume the loan somewhere down the line. This would give you the ability to refinance if you chose to do so. In order to help with getting your credit back in order, I’m going to suggest you check out our friends at QLCredit. You can see your report and score and it will give you personalized tips on how you can work to improve based on the information in your report. We also have this blog post on how to rebuild your credit that you might find helpful. Have a great day!

      Thanks,
      Kevin Graham

    2. My husband’s grandmother passed recently..we pay the mortgage even though it is in her name… she did put our name on the deed…. do we need to do anything?

      1. Hi, Ruthie. I’m sorry to hear about your husband’s grandmother. If she put your name on the deed, you don’t need to do anything, as you already own the home. You can choose to keep making the payments. If you want to refinance the loan at some point – to get a lower rate or take cash out – you would have to assume the loan. This would give you the power to refinance if you chose. To assume the loan, you would talk to the current lender that finances the home and credit qualify.

        Thanks and let us know if you have any other questions.

        -Patrick

  17. Hi, I was wondering if my siblings and I could be held responsible to pay a loan my father took out on his home a few years before he passed? He left us all in his will to have the home but I do not want any part of it he lived in St. Louis and I live in California what can I do? Thank you!!

    1. Hi Larry:

      If any of your siblings want to keep the home, you’ll have to work out amongst yourselves who’s going to make the payments and you can quitclaim your share over to them. Another option you have is to split the payments until you can sell the property. Finally, if none of you were named on the loan, you can just notify the lender that you wish to give it back to them. They’ll work with you from there.

      Thanks,
      Kevin Graham

  18. Hello I have a question we are trying to sell our deceased mom house and the realtor can only get fifty thousand and the payoff is fifty seven thousand and we don’t have the seven thousand to pay it off what can we do about this I am lost. Please help

      1. Hi Mia:

        I would see if you can find another buyer. There’s no need to take the first offer. In the meantime, you can make the mortgage payments. You just have to tell the lender. I don’t know what the value of houses are in your area or how the house compares, but I would make sure that’s the most you can get. Also, you do have the option of letting it go back to the lender in a foreclosure. I would talk to a lawyer, but if no one else was on the loan, it shouldn’t impact you. The other option would be to try and talk to the lender and see if you can do a short sale. For the lender, some money is better than no money.

        Thanks,
        Kevin

    1. My mother-in-law passed away in January 2017. My wife (her daughter), co-signed with her mother for a mortgage home several years ago, only because my mother-in-law husband passed away several years before and had applied an outrageous loan without my mother in-law knowledge. Again, my wife only co-signed because her mother would get a lower interest rate that she could afford. Now, the State of New York hired a collection agency to harass my wife and indicating that my wife is responsible for the house payment. The current value of the home if sold, would not come close to pay the total value of the home. Is my wife NOT responsible. My wife did not profit from anything nor was she co-owner of the home.

      1. Hi Mario:

        It doesn’t matter under what circumstances she cosigned for it. If her name is on the loan, she’s absolutely responsible for it. If she doesn’t get current, it could hurt your ability to get other loans in the future and hurt your credit score. I’m sorry to be the bearer of bad news.

        Kevin Graham

  19. Hi hope you can give me some advice . I live in Florida we had that bad hurricane . Anyway I went into the bank . To. show them the damage on my house . And a check that was in the banks name . And my Dads he passed away unfortunately. They gave me a hard time , I’m in charge of the estate. But since mom and Dad took a loan on my house . My house is paid off . But 100,000 loan is in Mom and Dads name on house . Now there saying that loan even though , I have been paying 4 years now . They say it needs to go in my name . My credit isn’t good there telling me I have to leave . I’m there 31 years . This is my investment. I’m selling house anyway . I’m worried House after repairs are done . What can I do please Thankyou

    1. Hi Donna:

      I think you should talk to a lawyer about this. I’m not an expert, but I do know that as long as you keep up on the payments, you’re allowed to live there. How that affects any homeowners checks for repairs and details regarding your lender’s policy, I don’t know. Thanks for reaching out.

      Kevin

  20. Many years ago my mom took out a 50,000.00 loan thru chase using the house as collateral. it is now still at 42,000.00. My mom passed away last month. Is there any chance that Chase would work with the family and negotiate a full payoff at a lower rate. Nobody else signed for the loan.

    1. Hi Pam:

      One of your options is to just let the house go to the bank. You’re not responsible for paying off the loan. Chase likely won’t let you negotiate a lower pay off amount. You would have to work with them to do a mortgage modification which would have a credit impact, but it’s an option. Or you can sell the house and keep anything beyond the payoff amount. Hope this at least helps you know where you stand.

      Thanks,
      Kevin Graham

  21. My mother passed away in August on 2017. At that time me and my husband and children were living with her. She had a transfer upon death deed made several years ago stating that the deed would be put in my older sister’s name in the event of her death. My sister has agreed that my family and I could remain in the house and continue to pay my mother’s mortgage. I have terrible credit and could not get a mortgage of my own however we make plenty of money to pay the mortgage payment each month. What do we need to do in order for me to keep living here and paying for the house?

    1. Hi Emily:

      I would go ahead and tell the mortgage servicer if you haven’t already, just so they’re aware of the situation. In order to actually assume the loan, the lender will probably check your credit, so you may not be able to do that right away. Down the line when your credit improves, that may be something you want to do so that you have the ability to refinance in the future if you desire. However, you can continue to keep living in the house. Your lender or servicer won’t care who makes the house payment as long as it’s paid.

      Thanks,
      Kevin Graham

  22. I Moved into my parents home in 2002 with my family. My Mom died in 2007 and my Dad moved out permanently and remarried in 2011. In 2012 – was asked to pay the entire monthly mortgage by my Dad so he could buy a condo. We had been previously paying a 2/3rd majority of the mortgage so that my parents could continue to pay their original mortgage amount. My parents had refinanced the mortgage in 2002 to pay for additions on the home including an in-law apartment that would allow all of us to live in the home. Before I agreed to pay the entire mortgage, I asked that I be put on the title to the house and we had a new trust drawn up making my father and I co – trustees but I have essentially become the primary owner and have been responsible for all maintenance and upkeep – we even remodeled our Kitchen in 2013. However – because I am not on the mortgage – everything we do – we need to either use cash or credit cards (the kitchen was financed using cash we saved long and hard for). My father takes the tax write off as well. My father has since purchased a new home using a reverse mortgage and he needed to prove to the bank that it was my husband and I who were paying the monthly mortgage so we sent him bank statements showing the with-drawls from our bank to correlate with the deposits made to his checking account. The bank debits his account monthly for the mortgage amt and we continue just to make deposits directly into his checking account. Our names are not on his checking account but I am listed as a trustee. I think it would be beneficial for everyone if my husband and I just took over the mortgage and potentially be able to give my father some cash as he has constantly made comments about his “loss of equity” due to not selling the house from under us after my Mom died. I am safer now than I was then in terms of that happening but yet my Father still tries to find ways of getting money from the home by going behind my back to apply for equity loans and lines of credit – which, ultimately – I would end up being responsible for paying back and he does this purposely since he wants to have the money but also wants to be able to walk back in the door of this house any time he feels like it – which he can since he is on the title with me. He expects me to “take care of him” if his wife dies before him and this is his way of maintaining control over me. My husband and I are in our early 50’s, we have one child in college and another set to go in a year and a half. We have taken out loans for our daughter’s education and will have a good chunk of debt in another year. We easily are able to afford the current mortgage payment so that isn’t an issue. Our credit is good – not excellent – but good hovering around 700. We actually worked with Quicken in 2014 with the initial stages of trying to qualify for a mortgage so that we could buy the home from my Father – but at less than market value since that would be way over our heads. He would have to agree to sign a “gift of equity” and we planned on giving him $100k. It ended up not coming to fruition – partly because my Father just kind of ended the communications about it. But since then – he has continued to make attempts to get money for himself from this house – again – behind my back. I’m getting anxious that eventually – the bank will approve one of his applications and I will be screwed. Banks make mistakes so this could happen. I would rather just give him some money to go away and have the mortgage and title completely in our names. Now I’m wondering if re-financing with a cash out option to give him the money he is lusting after is the better way to go about it? Would the bank refinance a mortgage that is in my father’s name so that we can become the new mortgagees? I know I would have to have my father sign off on it – but if I sweetened the cash pot enough for him – he likely will agree. There is potentially well over a half million in equity in this home with a mortgage balance probably in the upper $290’s though I don’t know for sure. What do you think my best options would be? Thanks very much for any advice….I know this story is long and complicated!

    1. This is a complex problem and it sounds like you have some family stuff to deal with. Since this is so complex, I’m going to suggest you speak with one of our Home Loan Experts by calling (888) 980-6716 and they would be able to go over any options you might have. They would be able to give much better advice for this than I can in this comment section.

  23. Hello, my father passed away in 2010. My mother took over the mortgage & it keeps going up at the end of each year. I’m lost as to where do I start to transfer her name on the deed & getting a fixed rate mortgage. We tried going thru the bank but they just keep giving us the run around.

    1. Hi Angela:

      You have to make sure that the deed was supposed to go to you and your mother legally. If that’s not written in a will somewhere, you may have to put it through probate to get in her name. Once you do that, that lender or any other one including us can work with you on a refinance assuming you qualify financially.

      Thanks,
      Kevin Graham

  24. My aunt inherited my grandmothers home where I live. I want to buy the house and take over the mortgage. What are the options for this?

    1. You do have the option of taking over the mortgage with the permission of the mortgage company in what’s called an assumption. She could also choose to sell the property to you either for face value or with a discount. That discount is known as a gift of equity. Those would be your major options. If you would like more info, you can talk to one of our Home Loan Experts at (888) 980-6716.

  25. Hi my parents have deceased an I was listed as the one the house was to go to…My parents had a FHA home an I wondering do I have to refinance the home are can I just keep making the payments?

  26. I have a friend who is suffering from cancer. He has no next of kin – anywhere! I’ve been a close friend for over 15yrs. Before his forthcoming passing, he has established me as executor and deeded the property to me. I ‘m going to be facing some high walls to conquer as he has a mortgage with a second and many cc debts!. The home although under 10yrs old is internally destroyed due to a huge hoard. This property could possibly be worth a hefty amount of $$ because it on a fair amount of land. My only income is social security but I do have good credit. Any financial tip or help you can offer would be greatly appreciated. I will more than likely need to refi the loan because I cant afford the current payments and he wont have any estate $$ to leave.

    1. I’m very sorry to hear about your friend. That does sound like a very difficult situation. If you’re looking to refi the property at some point, we can certainly help you look into any options you may have. Because of your situation, I’m going to recommend you speak with one of our Home Loan Experts. They can really go over your situation in detail and determine your best possible option. That would probably be where I’d get started and go from there. You can get in touch with them by filling out this form or calling (888) 980-6716.

      Thanks,
      Kevin Graham

  27. Hi, My father a married man purchase a house under his name only and died not leaving a will or trust, the house is under water and we do not know where to start, does the house needs to go through probate first before we start paying it or we have to talk to the Bank first to assume the loan and keep on paying?

    1. Hi Ana:

      I’m sorry to hear about the passing of your father. You should talk to the bank and let them know you wish to continue making the payments if that’s what you plan to do. Either way, contact them and let them know that he has passed. It will need to go through probate and whoever gets it can then do a proper loan assumption so they would have the option to refinance or sell down the line. I hope this helps!

      Thanks,
      Kevin Graham

  28. My father passed September 2016 and left me his house in the will but he had a mortgage, I have been paying the mortgage since then but I know my credit would not qualify for a loan are there any options I would have. The house needs some work but I can’t afford to do that on my own would there be away to get cash out of the home for the repairs?

    1. Hi Rose:

      You have a couple of options. You could take cash out of your home through something like a cash-out refinance. You could also take a look at a personal loan. However, in either case, your credit would be checked for qualification purposes. I’m going to recommend a couple of things.

      If you’re looking for a way to get started, we have this blog post with plenty of tips on things you can look at to improve your credit. You should also check out our friends at QLCredit. You’re able to get your VantageScore 3.0 from TransUnion every two weeks. You’ll also get tips on how to improve your credit based on the items in your report. Finally, you could also speak with one of our Home Loan Experts by calling (888) 980-6716. They may be able to suggest tips to get your credit up to par so you could qualify.

      Thanks,
      Kevin Graham

  29. My father-in-law passed away in March 2017. He gave my husband (his son) first right of refusal of his home/property. We have decided to keep the house. He has a mortgage which we can pay. We decided not to assume (as the lender has said we would have to qualify) because we have our own mortgage and continue to make payments to his. We did a name change and my husband is on the account under the estate name. How long can we keep the account as such? We’re going to be selling another property and pay off my father-in-laws existing mortgage in two years. Can we keep it in the estate name (with my husband’s name attached) for two years? Or is there rules that state we can only do this for a designated amount of time? Any assistance would be appreciated.

    1. Hi Karen:

      As far as how long can stay in the name of the estate, that may vary depending on state law. I’m going to recommend you talk to an estate attorney about that.

      Thanks,
      Kevin Graham

  30. Hello,
    My Father passed in March this year, there was no official will but a note was left saying I get everything. I was appointed by a judge as the Personal Representative. I am thinking of keeping the house. I’ve been paying the mortgage every month with the estate account. The name on the statement has been changed to “The Estate of…” . My question is this: Do I have to wait for the probate to close to assume the loan? Can I be denied assumption by the lender?

    1. Hi Jodi:

      I’m sorry to hear about your father. You do have to wait for probate to close to officially assume the loan in your name. That being said, once you’ve officially inherited the house, you don’t have to credit qualify in order to assume the loan. Therefore, they shouldn’t deny the assumption. Hope this helps!

      Thanks,
      Kevin Graham

  31. Hi, I was wondering if you could answer this question for me. In 2012 my mother helped me purchase a home (it was purchased in her name only). I live in the home and have been paying the mortgage on it since then. My mother left me the house in her will and rather suddenly passed away in 2015, before she could sign the paperwork keeping the house out of probate. I am the executor of the estate and it went through probate and I just still pay the mortgage on it, with a remaining balance of about $175,000. I would really like to take some cash out for home repairs and some tuition costs for my high school age daughter. I had to leave my job to care for my mother when she fell ill and my credit is ok but not as great as hers was (it’s about 650) and I have been living on my savings and inheritance, as well as my freelance contracts. Also, my attorney who helped me handle this estate has also since passed away (I am devastated). The house now says “Admin, [her name], then “decd.” I would really like to transfer the house to my own name and then try to take some equity out for the above mentioned costs. Can I do this? I live in California. Sorry if this question is redundant, but I am just confused and need some guidance.

    1. Hi Samantha:

      I’m sorry to hear about your mother. The house was left to you in her will and it’s been through probate, you should be able to get the title transferred into your name and get cash out. I’m going to recommend you speak with one of our Home Loan Experts to go over exactly how this works and what can be done to help in your situation. They’ll be able to go over things in more detail. You can get in touch with them by giving us a call at (888) 980-6716.

      Thanks,
      Kevin Graham

    2. Samantha — Good you’re living in California, with CA 1978 Proposition 13 tax relief in effect, capping property taxes at 2%… as well as a great measure called Proposition 58 to keep parents property taxes, when it comes time to transfer parents property taxes on the house you received form your mom — after inheriting property taxes, at least it’s capped at that 2%, and this carries over in all property tax transfer matters fortunately, thanks to Proposition 13 — which you should definitely be aware of. However, one gets the sense that you may not be fully aware of all these tax benefits in California. The CA Proposition 13 tax shelter benefits during and after property tax transfer (with CA Proposition 58) saves beneficiaries like you big bucks, being able to transfer parents property taxes, being able to keep parents property taxes… inheriting property taxes that are capped. You’re able to avoid property tax reassessment at present day evaluation… and that saves you major money every year. My family and I live in New York, NY and we don’t have those tax benefits here, in fact quite the opposite — we have federal, state AND city taxes to worry about. Plus super high property taxes, with no tax relief like in California. Beneficiaries are lucky to be able to keep parents property taxes at a low Prop 13 tax base in California; and if folks want to continue being lucky, they need to learn up on these benefits, for example at a resource blog like https://propertytaxtransfertrusts.com or maybe on some Websites that cover CA Prop 58, property tax transfer & how trust loans from trust lenders work, equalizing distribution of cash, at sites like https://trustandestate.loans/california-proposition-58 or at one of the transaction focused sites like https://cloanc.com/category/prop-58 This gives beneficiaries enough info to avoid inheritance conflicts between siblings; with some wanting to sell inherited property, and some insisting on keeping inherited property. So with Prop 58 and a trust loan from a trust lender, they all walk away happy for one… and for once the inheritance process involving siblings is win-win.

  32. My father died in May 2017. We have been paying the mortgage since. We are ready to list the house, but notice in my Dad’s irrevocable trust that all assets must be distributed within six months of death. That give us about seven weeks. Should I contact the lender and inform him/her that we are about the listing and ask them to hold off? In essence, we have violated another written term of the Trust by not notifying all creditors within 60 days of his death. I’d like to get ahead of this and keep the mortgage holder informed. It’s just a $15,000 balance on a house that will sell for about $900K. Thanks so much for any advice you can offer.

    1. Hi Terrance:

      I would notify the lender as soon as possible. However, the lender won’t have any control over what happens in the trust. As long as the mortgage is being paid, what happens with the house is between you and the legal system. I would talk to an attorney because the house may have to be out of the trust and in someone’s name before you can sell it. Trusts sometimes cause issues with title transfer if the property isn’t removed first because you have to have the rights to sell. I think your next step is to talk to someone who’s an expert in estate law.

      Thanks,
      Kevin Graham

  33. I inherited my parents home after they passed away a few years ago. The bank was notified etc and I was told since I lived in the home I could just keep paying the mortgage. My credit was not great – and still isn’t due to some debt – but I have never been late on a payment. The deed and taxes are in my name but the mortgage is still in my fathers name.
    Now I have moved back out of state and am renting out the home. The loan to value ratio is about 40% or lower and I am wondering how I can take some of the equity from the house to pay off my debt and do some maintenance on the home, as well as build my credit by having the mortgage in my name. It seems there are some laws in place to help adults who inherit parents mortgage but how do they apply if you are living in the residence?

    1. Good morning Carla:

      I can tell you that when you go to refinance, they will look at your credit and it has to be good enough in their mind that they know you can handle the mortgage. As long as you keep paying under the terms of the previous loan, you don’t have to worry about your credit. That’s what the law protects in terms of inheritance. When you get into a new loan, it’s different.

      We could help you take cash out with a credit score of as low as 620. I don’t know what your situation is like. If you give one of our Home Loan Experts a call at (888) 980-6716, we can look into your options and see what might make the most sense for you. They may also have ideas on how to get your credit up.

      Thanks,
      Kevin Graham

  34. My sister has a terminal illness and I am the only living relative. She wants to leave her house to me that has an underwater mortgage. I would like to keep her home in the event she passes. She has considerable medical bills. What would happen to the house since it’s her only asset with no equity? Would the estate still have to sell it or could I assume the mortgage (assuming the lender agrees)? Since I am the only relative I would be the person handling her estate.

    1. Hi Lynn:

      You do have the option of assuming the loan and continuing to make the payments. When you inherit the property because of her passing, you also don’t have to credit qualify. I hope this helps. My thoughts are with you.

      Thanks,
      Kevin Graham

  35. My mother bought a house last year we both split the cost on everything my name was not on the mortgage but she Lady Bird deeded me the house and left me the house in the will. She passed away 5 weeks ago and I have been making the mortgage payments also claimed the house through the county but concerned to notify the mortgage company of her death. My credit is awesome but I have only been working part time due to caring for my mother will the mortgage company allow me to transfer the home into my name without refinancing? If so within what time frame do I have legally? She also had some credit card debt.

    1. Hello Cindy. My deepest condolences to your family during this time. The best thing to do upon the death of a family member is to first contact the servicer of the loan. Servicers typically require verification that you’re the inheritor of the house.They’ll be able to work with you and discuss options for the payments. For more information, please read: https://www.quickenloans.com/blog/happens-mortgage-borrower-dies. As for the credit card debt, the estate generally owes any of the debts left behind by a family member. If the family member left enough assets to pay for these debts, someone known as an executor is responsible for selling those assets and settling up with the creditors. If the estate doesn’t have the funds to pay for these personal debts (this is called a solvent estate), then the debts typically die with the family member. But not always. I recommend speaking with a lawyer about the left over credit card debt before making any further decisions. For more information, please read: https://www.quickenloans.com/blog/what-happens-to-your-debt-when-you-die. Again, my deepest sympathies with you during this time. I hope this information helps! – Allison Hendricks

  36. Hello,

    I am inheriting a 1 BR Condo that has a remaining $40,000 Mortgage.

    The estate doesn’t have enough to cover the Mortgage, but after all bills are taken care of there may be a small amount of money left over. Would that automatically go towards paying off the Mortgage?

    I am the only one named as an heir in the will so I assume that it wouldn’t matter because I would inherit whatever money was left over anyway. I’m just curious how that works.

    Also, I have never owned a home (always rented). Would there be any special financing offers available to me as a first time home buyer?

    I’m still not sure what the best option is for me but buying seems good because it’s not easy to find a home for $40,000 (or maybe less?).

    Do I need to have my name on the deed before I can look into refinancing or other options?

    Also, will the remaining Mortgage be deductible from the estate value so it would lower my inheritance tax? (Maybe I got that wrong?)

    Sorry, this is all new to me and still trying to figure out what I want/need to do.
    The only thing in probate is the Condo. Everything else had designated Beneficiaries.

    How long would I have to decide what to do with the Condo?
    I’m not being rushed by the lawyer now but he does need to know ASAP. I just don’t know all the financial advantages/disadvantages of either buying,selling or renting it out.

    Any advice on my situation would be appreciated.

    Thanks!

    1. Hi Joe:

      If you get the condo, you’re not required to pay off the mortgage. You could choose to sell or give it back to the lender. So the money left to you doesn’t automatically go to paying off the mortgage. I believe that answers your first question. As far as first-time home buyer options, you’re not buying the home if you inherited it. You should have your name on the deed before you look into refinancing if you decide to keep it. In terms of the tax implications and how long you have to decide what to do, I suggest talking to the lawyer and possibly a financial advisor. The laws are different in every state and we don’t give specific tax advice.

      Thanks,
      Kevin Graham

    2. Hi Joe,

      I’ve inherited a home with a remaining balance of about $220K. I’ve been able to make the payments, but my credit isn’t the best so I’m not sure If I would be able to qualify in a re-fi. What are my options?

      1. Hi,

        If you inherit the mortgage, you don’t have to credit qualify in order to refinance. You just make the mortgage company aware that the previous occupant has passed. Then you can go over your options might be to refinance.

  37. My mother passed away 3 years ago and she deeded the house to me . I never refinanced but I did communicate with the lender I would continue payments by cash deposits in her account where the payment is automatically taken out. I have come to the point I cant afford it anymore as I have my own house mortgage. Can I walk away from this and let it go into foreclosure with no affect of my credit which is now at 820?

    1. Hi Harry:

      One thing that might make more sense is if you sell and you get whatever money you can out of it rather than letting it go to foreclosure. As far as whether it would affect your credit, that would depend on whether you ever assumed the loan and had it put in your name. This is different from refinancing, but you would be obligated on the loan. If not, you could let it go.

      Thanks,
      Kevin Graham

  38. Both my parents are passed my mom 16yrs and my Dad 8 months. .My Dad has a living trust and I am the trustee. . I have a special needs trust for my sister who is a adult. Everything my parents had is stated in The trust home is paid for .So I would like to know how much capital gains would be on 850.000. And how time to have to purchase a home. I live in California. .
    Thanks Lisa Palmer

    1. Hi Lisa:

      I’m sorry to hear about your parents. Unfortunately, we cannot give you tax guidance. I would recommend talking to an accountant or professional tax preparer. That being said, there wouldn’t be a time limit on how long you had to purchase a new house. One of our bankers could absolutely help you if you want to give us a call at (888) 980-6716. Hope this helps!

      Thanks,
      Kevin Graham

  39. My mother passed 1,5 yrs ago with a mortgage of 77,000.
    I am the executor of the estate that was left to my sister and I. My sister isn’t interested and couldn’t qualify to assume this mortgage and has asked to, of which I want to.
    My credit is excellent, I have my own mortgage and Credit Card debit.
    Do I have qualify to assume since it was willed to us and do I have to live in it?
    We have had it rented since my mom passed , which covers the mortgage.
    Eventually the property would be sold, and I even have buyer interested, not sure what to do

    1. Since you inherited it after your mother’s passing, neither you or your sister has to credit qualify in order to take over the payments. You don’t have to live there either. This is because they don’t have to refinance in order to assume the loan. Hope this helps!

  40. Hi, My Dad currently suffers from severe dementia; however, before he became too bad cognitively, we did do a revocable living trust and a will. My Mother is still alive (thank God). There is a mortgage on the home ($85000), which is in my Dad’s name only. However, the deed is recorded with both of their names, and then to the Trust. Should my Dad pass away, what would be the status of the mortgage, since it is only in his name? To ” inherit” a property via a will, should I have my name put onto any paperwork to ensure easy transfer at that time? I also have a sibling who will be happy to be there to collect when that time comes; however, will be unwilling/unable to pay anything more than would be absolutely necessary. What should I get into place now, if anything, before the day comes ? Any information would be greatly appreciated.

    1. Hi Karen:

      If you have a trust, the house passes the beneficiaries on the trust, or if it’s in the will, whoever is named in the will. At that time, you’ll be able to call the mortgage company and assume the payments. If you want, you could probably work with your mother to get on the deed now, but it’s not strictly necessary. Hope this helps! I’m sorry to hear about your dad. Dementia stinks.

      Thanks,
      Kevin Graham

  41. my mother recently died after a long illness . my dad learned that my mother had credit card debt totaling over 60,000 (in both their names) my dad also has a second mortgage for 70,000 on a property that is now worth approximately 40,000.. he wants me to co sign on his banking accounts so we don’t need to go to probate but I am hesitant to place my name on anything going forward. if my father dies, do I just walk away from the house and let it go to foreclosure , and what if anything would I owe in the event I am chosen as executor. thanks

    1. I’m very sorry to hear about your mother, Bern.

      As far as the house, if your dad assigns no specific heirs, you can just inform the bank of his passing. They’ll take over and sell the property if you don’t want it. In terms of the credit card debt, the companies will recoup whatever they can from the estate. If you’re named executor, you’ll have to negotiate anything that’s not paid off with them.

      That being said, since you haven’t cosigned on any of the actual debts, there’s no personal negative to you being on the bank accounts. Hope this helps!

      Thanks,
      Kevin Graham

  42. Hi There,

    My father passed away on 3/31/2017. The deed itself has mine, my husbands and my fathers name on it. My father left the house to me in the will. I do not have the credit to transfer the loan over to me. He is also behind on the mortgage. I have been making the monthly payments and trying to catch up to the best of my ability. Do we have any options? Can we sell it, stay in it? If we sell it how are we sure the money goes in our names and not my fathers name? Sorry i have a lot of questions.

    1. Hi Jennifer:

      I’m sorry to hear about your father. If the property was left to you, you don’t have to credit qualify in order to take over the loan. You do have the option of potentially staying in the property. You could work out a loan modification with the servicer if you’d like. Alternatively, you could sell it and any money left over after paying off the loan and overdue fees would be yours. If you legally inherited the property and are on the title, the money would go to you. Hope this helps!

      Thanks,
      Kevin Graham

  43. My father- in- law passed and my husband and i were put on the deed to inherit house which mortgage is still owed in michigan we want to make the payments on the home to leave in do we contact mortgage company of passing so we can assume mortgage or just continue passing mortgage do we have to redo loan or just continue previous loan

    1. Hi Jackie:

      I’m sorry to hear about your father in law. In order to assume the payments under their current terms, you would contact whoever is servicing the loan, meaning collecting the monthly payments. This may or may not be the original lender that he did the mortgage with. Once you assume the payments and take over the loan, you do have the option of refinancing, but you wouldn’t have to. Hope this helps!

      Thanks,
      Kevin Graham

  44. My mother passed away 2 years ago and my father passed away 2 weeks ago. Their home was paid off at one time but my dad got into financial trouble and he had to borrow against the house. There is a small balance still on mortgage. Our parents left a trust with us kids as trustees, house in trust. We plan to sell the house. Do we contact lender of death (both parents names on it still) continue making payments or sell house and balance paid through escrow?

    1. Hi Ann:

      I would contact your lender. Probably the easiest thing to do until you sell the house is to continue making the payments because it’s less messy that way. However, my only concern is the fact that it’s in a trust. I would contact them and see what their advice is about assuming the loan.That’s your next step.

      Thanks,
      Kevin Graham

  45. Hello,
    Thanks for the assistance. We’ve inherited 2 properties with renters in both of them. The rent covers the mortgage each month. The mortgage on each property is about half the value of the homes. Generally, what does it take to move the properties into the individual beneficiary’s names? I’m assuming a title change, but does it also constitute a credit check so the mortgage can be moved over? Would the income from the rent be considered? Any threat of rate changes? Appreciate the help.

    JF

    1. Hi Jimmy:

      Since you inherited the properties, you can assume the loan under its current terms without your credit being checked. If you choose to go this route, there would be no threat of rate changes. You just have to let the lender know. If you choose to refinance, that’s when your credit would be checked. Also, typically when it comes to rental income, you can only use 75% of it to qualify. The remaining 25% is taken off in order to account for a time when you might have to look for new renters for a few months. I hope this helps!

      Thanks,
      Kevin Graham

  46. My father passed away in October of 2016. His house was appraised at 60 thousand, but he owes close to 80 on the existing mortgage. I Was planning on letting the house go into foreclose because no one is legally obligated. I was recently thinking that perhaps I could still take over the payment and prevent it from going into forclosure. The house needs some tlc, but I think in the long run I could pay off what he owed and perhaps make a little extra money buy flipping it. The house is in a very good location. my issue is I have an existing mortgage and would I be able to make payments on my fathers existing mortgage or would it be like trying to have two mortgages in my name?

    1. Hi Seth:

      I’m sorry to hear about the passing of your father. Since you inherited the house, you can assume the mortgage payments without having to credit qualify. The mortgage company should really be informed that your father passed away and you’re making the payments. If you want to take cash out to make any renovation, that would have to happen anyway. You would be paying on two mortgages at that point.

      Thanks,
      Kevin Graham

  47. My cousin passed away in September. He was not married, his ex-wife deceased in 2000. They had one child who is 23 and mentally challenged. Because of this he was not able to bare the responsibilities of the estate. Therefore his Grandmother, my aunt and the mother of my late cousin is the executor of the estate. The estate is in probate, a Will was not left.

    In this case who is the legal heir? Who assumes the note?

    Mortgage has not been paid in 6 months because he had no real cash, motorcycle, truck, camper, furniture etc only. Life insurance left to the son only $80k Son is still living in the home. His Grandmother or I will become his legal guardian. As the legal guardian and living in the home can we take over the mortgage?

    Home balance $212k, monthly payments $2400, 15 year loan with 7 years left. Last appraisal in 2014 $375k.

    Neither of us can qualify for a loan at this time. Thoughts?

    1. Hi, Theresa,

      First, I am sorry to hear that you lost your cousin. Second, due to the complexity of your situation, you will need to speak to one of our home loan experts.

      Give us a call at (888) 635-1576.

      Best,

      Kollin

  48. My mom co-signed on a mortgage for her brother and sister-in-law. The sister-in-law name was on the mortgage and not the brother. The sister-in-law dies, my moms brother is still living in the home. Is there a way for my mom to get off the mortgage since she was a co-signer and her brother is still living in the home but not the mortgage holder, besides refinancing?

    1. Hi Rita:

      I’m sorry to hear that she has passed. Your mother can try calling her mortgage company and see if they will let her have her brother assume the loan. They won’t always let you do that, but it’s worth a shot. Hope this helps!

      Thanks,
      Kevin Graham

  49. Can I assume the VA loan on the home my Father willed to me if I don’t intend to live in the home i.e. rent it out?

    1. Hi Michael:

      I’m going to recommend you speak with one of our experts. You normally cannot rent out on a VA loan, but I’m not sure how that works in cases of assumption. If you give us a call at 888-728-4702, one of our licensed bankers will be more than happy to help.

  50. Good Evening, my father passed away a few weeks ago. I am in the process of assuming the mortgage and taking over the payments. Since my father was elderly and on fixed income the house needs a tremendous amount of work done. There is some equity in the house but not very much. If I owe $73k on the mortgage, could I request to take the balance up to $100k and use the difference for repairs? I believe the house is worth $95k. I am completely clueless, any help you can offer will be greatly appreciated.
    Sincerely,
    Kim

    1. Hi Kim:

      I’m sorry for your loss. We don’t offer these, but there are some loan programs that will let you build the cost of the renovation into the mortgage. It sounds like that might be something you should look into for your situation.

      Thanks,
      Kevin Graham

  51. My partner was diagnosed with a terminal disease 3 years ago, and has made it longer than the doctors ever thought she would. We live in Colorado and the home we live in is in her name. She cannot quit claim deed it or apply to refinance it with me because of her medical coverage. We have done her will through Legal Zoom and I am the executor and sole beneficiary. My question is how do I make sure that I will be able to keep the house and how will I be able to have it put in my name?

    1. Hi Sherrie:

      I’m sorry to hear about the health of your partner, but I’m also glad you have been able to spend this time with her.

      In terms of your mortgage transfer question, you’ll be able to assume the payments without having to credit qualify if and when she passes away. You’re the beneficiary. You just have to inform the mortgage company. They can go over the transfer process at that time.

      I hope this helps!

      Thanks,
      Kevin Graham

      1. Does the same transferability apply to non-wedded couples in Virginia? I inherited my boyfriend’s house, which was mortgaged to his name alone with a due-on-sale clause for complete payment. The deed to the house is now in my name, but due to seven months I spent away from work to recover emotionally from his death and the fact that 40% of my income is tip-based, I remain unable to secure a refinance into my own name. I called a mortgage company yesterday and the broker was surprised that I had not simply been added as an obligor to the existing loan. The credit union holding the mortgage has pressured me to resolve the mortgage despite telling me I would not qualify to refinance it; however, my credit score is excellent, I earn more than necessary (albeit partly due to tips) to pay for it, and I have over-payed the mortgage for two years since his death.

        1. Hi Rhiannon:

          I’m sorry to hear about your boyfriend’s passing. As long as you legally inherited the house, you don’t have to be married in order to do a simple assumption without credit qualifying after his death. There is no requirement that you be together.

          Thanks,
          Kevin Graham

  52. My mother in law passed 6 years ago and my family and I have been living in the house and making the mortgage payments. We were doing well initially, but this house… This house is in dire need of renovation. My mother in law hired a questionable contractor that did some remodeling and all of his changes were of poor quality. Keeping up with basic necessity repairs (heat, plumbing, structural problems) has drained our finances and we’ve found ourselves behind in our payments. We’re not on the mortgage and are unable to work with them on possible assistance. If our credit was better, we’d see about financing in our name. Is there anyone you recommend we speak with for guidance? We’d like to keep the home, but getting it fixed up is taking all our money, and we’re still only at the surface.

    1. Hi Deb:

      Unfortunately, to have any modification options the loan would have to be in your name. You should have been able to assume the loan after your mother-in-law passed without having to credit qualify. However, you have to do that right after death. I would talk to the mortgage company to see if they can have you get in your name because of the death now. That’s the best I can tell you.

      Thanks,
      Kevin

  53. Hello,

    My grandfather passed away 2 months ago without a will. He had asked me and my family if we would move back in for the 2nd time, (the first time was for 2 years) this time taking over the mortgage (it was taken by allotment from my husbands retirement check and sent to my grandpa’s account then he would make the payment) and splitting the rest of the bills. We have been living here for the past year and a half and since his passing have continued to make the mortgage payment. I would love to continue to live here. My problem is that the house and insurance are in my grandpa’s name. I need to know how to go about insuring the house in my name in case of( fire or falling tree) Do my uncle and I need to go through probate court? or can I just get a home insurance policy on the house separately and in a year or two try to get my credit rating up enough to qualify for the loan in my name? Do I have any legal rights to the house since it has been my residence for the last year and a half?

    1. Hi Marie:

      I would consult a probate attorney in your state to make sure of this, but you probably have to go through probate in order to formally inherit the property. Once you do that, you can contact the mortgage company about formally assuming the loan and work to get the homeowners insurance in your name. Because you would be inheriting it, the good news is you don’t have to credit qualify in order to assume the loan. You should just be able to make the payments. Hope this helps!

      Thanks,
      Kevin

  54. So my question is, my grandfather passed away and left his house in a trust to my father. There is still 70-80k left on the mortgage. My older brother is the executor of the trust. What would the process be for me to buy the house and also would it be possible for me to assume the loan or no because I am not the beneficiary of the trust? Thanks for the help

    1. You could in theory take over the mortgage payments and buy the house from whoever is the beneficiary. In terms of assumption, you would have to talk to the current mortgage lender in order to get their permission and in all likelihood fully credit qualify to make the payments because you’re not the direct beneficiary. The first step is to talk to the lender and see what their policies are.

      Thanks,
      Kevin Graham

  55. Inheriting a home with an existing mortgage at 6%

    Is it wiser to have my daughter co-apply and co-sign a refinancing that I wish to do, hopefully at 4.25%, while, at the same time, I am signing a will leaving the whole property to her?

    With our two income it is going to be much easier to qualify and make possible to shorten the mortgage to 15 years. A good idea?

    1. You certainly have that option. There’s no reason I can see why you wouldn’t want to do that if you want to make the mortgage as affordable as possible for the two of you. If you would like to get going online you can fill out this form. If you would like to reach out on the phone, you can call (888) 728-4702.

      Thanks,
      Kevin Graham

  56. My parents want their children to keep their house in the family when they die, because of its sentimental value. It is stated in their trust & will that their only 2 children, me and my sister, inherit their mortgaged house and share the cost of the mortgage upon their death. Currently, my sister lives in their house with my parents and she will not be able to afford the mortgage. I do not want to inherit the house. In the event of my parents’ death, will I be forced to take over the mortgage in order to fulfill our parents’ wishes to keep the house in the family? I want absolutely no part of their house.

    1. Hi Ellen:

      In a best case scenario, hopefully your sister is in a better financial position to take over the payments by the time your parents passed away. You’re still responsible for the payments if there’s a balance left on the house at the time of their death. You do have the option of selling the home. This is the best option if you can’t afford it. Otherwise, if the bank takes over and doesn’t make back the amount of money needed to cover the balance, they can attempt to seize other assets in order to cover the remaining balance. It depends on state law.

      Thanks,
      Kevin Graham

  57. My grandma passed away in may 2013. So for the past 3 years we have been dealing with the estate transferring from my grandma as executor to me as excutor. I currently don’t have good credit but we are current on mortage. We live in home and would like to make payments but I need it out of probate court.

    1. Hi Felicia:

      My advice is really to talk to a probate attorney about this. That way you can eventually get the house and mortgage in your name. One thing I can definitely tell you is that you don’t have to credit qualify in order to assume the payments once it’s out of probate. Because she passed away, you would just be able to maintain the payments as heir. I hope that helps!

      Thanks,
      Kevin Graham

  58. I need to find out what I need to do on my home. I still owe money on the loan and want to leave it to my daughter. Can I Add her to my loan and she will get it or does she have to do anything. Don’t have much in money or assets but want her to get the house. The house is old but refi to pay off some bills and lower the payments. if she has to refi the payments would go up. is their anyway for her to just take the loan when I die and pay the rest of the house off in her name. Need to know what I can do to make sure she get the house she grew up in.

    1. Hi David:

      She doesn’t have to do a complete refinance. If you pass on and leave the house to her, she has the option to do what’s called an assumption and keep paying on the loan under its current terms. The mortgage company would just make sure she can make the payments. I hope this helps.

      Thanks,
      Kevin Graham

      1. Kevin, can you explain why “The mortgage company would just make sure she can make the payments.” I have a client in a similar situation; however, according to the CFBP’s interpretive rule issued on July 11, 2014, the Ability to Pay Rule does not apply to an heir simply stepping into the shoes of the original borrower. I think we could all use some more clarification of Quicken Loans®‘ position when it comes to heirs who simply want to keep making payments on their deceased relative’s mortgages.

        1. Unfortunately, I misspoke. In the case of the previous owner passing away, the heir is not required to credit qualify in order to continue making payments on the current loan.

          Thanks,
          Kevin Graham

  59. I had been caring for both my elderly parents for the last 7 years in their home full time due to mobility issues and paying their mortgage myself. They both passed away just 5 days apart. I am continuing to pay the existing mortgage on their home while still living in it (since mine has been rented out while caring for them). I could not get either of them to do wills but plan to just probate the house to me since it was my childhood home and they wanted it to stay in the family. When I do probate is it required I refinance the mortgage or can I just keep paying on their mortgage until I’m in a position to refinance myself? (since I already have a mortgage on my rental home.) Thank you.

    1. Hi Maria:

      Once it goes through probate, you don’t have to necessarily refinance the mortgage right away. You can just assume the mortgage on its current terms until you’re ready.

      Thanks,
      Kevin Graham

  60. My mother passed away in 2011 with no will. I’m an only child and there’s no other family. I went to the register of wills in my county and got a short certificate saying that I’m the executor of the estate. I’ve paid all debt and inheritance tax and pretty much did everything except pay off the mortgage on her home/my home. At the time she passed I sent the mortagage company the documents notifying them that she’s passed and changed the account name to the estate of her. So if I had questions or anything they could legally talk to me because I’m the executor. When she passed I didn’t have the best credit so I jus kept paying the mortgage til I got my credit score in shape enough to refinance. Now I applied for a refinance through quicken loans and am havin trouble with the title people and I don’t understand why. I’ve uploaded a copy of the death certificate and the short certificate showing that I’m the sole heir. Everywhere I’ve researched online seemed to be pretty clear it shouldn’t be an issue to jus transfer the title to my name and give me a loan for the remaining balance on the mortgage. I’ve even spoken with a real estate attorney and they’ve even said it wouldn’t be worth it to take on the case because it would be cheaper for me to just either goto a title transfer company or when I refinance have their title people do it. So what should I do? Do I talk to a manager in their loans department? Do I jus wait and see if everything goes through? I’m kind of stressing out about it because I’ve built my credit up so I could do this and it jus seems as though I keep hitting snags. Any advice or help would be appreciated.

    1. I understand why that would be frustrating, Jeff. I’m going to have one of our home loan experts reach out to you. They’ll look at your situation and point you in the right direction. Thanks for reaching out!

  61. My Grandmother passed and left her home to me. She had a balance of 104000 on her home and after a long struggle and battle with Seterus inc. and all of their fees I was able to do a loan modification for 117000 and save the house from foreclosure. My question is now that the modification loan is in my name how do i get my name on the title so i can refinance or even transfer the electric bill into my name. Any help with this matter would be greatly appreciated. Thank you

    1. Hi Troy:

      It sounds like you’ve taken the right steps to start trying to get things under control. I’m going to have one of our title experts reach out to you to go over this.

      Thanks,
      Kevin Graham

  62. Hello, my dad passed and left two properties to me. Unfortunately it seems he did a refinance on both one month before he passed. He went into hospital one month later his mortgage was sold to another company. Two months later he passed. One mortgage offered a settlement. And the other if so fraudulent I was told I need to fill out papers for modification. In which I did and to no avail nothing ever came from that. Now they are telling me to send in document to assume the loan. Which is 50k. The house needs work and I am getting calls from investor to buy that home. It’s lakefront property. I would like to sell because I will not be moving into the property. But I don’t know what to do because they are also taking foreclosure. I gave one investor a sell price of 60k because that will payoff plus leave cash to do some needed work on the other property. But I’m not sure if I should assume and send in documents. And with the other property if I send them the settlement offer. Is that the right thing to do.. Please advise. Thank you

    1. Hi Antoinette:

      I’m going to pass this along to someone because you’ve got a very complicated situation here.

      Thanks,
      Kevin Graham

  63. I have a question:
    My stepmother recently passed away and left me as trustee and beneficiary of all her assets, life insurance, and mortgage debt, as my father, who is listed jointly on mortgage, is mentally incompetent and was placed in a nursing home with Medicaid assistance 10 years ago.
    My stepmom was forced to refinance the home after my dad had his stroke and his SS retirement and pension was needed for his long term care and could no longer be a contributor to the mortgage.
    Unfortunately, the house is mortgaged to the hill and would not likely be a quick sell.
    Since my dad can’t have assets totaling more than $2,000 or it disqualifies him for Medicaid, it would seem to me that it be best to begin foreclosure, as he can’t contribute any of his retirement towards anything but his care. But my attorney says that I have to pay down as much debt as possible on mortgage with all her assets, including having to sell her car, personal belongings, and life inssurance proceeds that were left to me and not the estate. Is that possible? And what is the best solution to this enormous problem?

    1. Hi Tina:

      That is more of a question for an estate planning attorney. The Medicaid thing doesn’t sound right because there was stuff left to you and not the estate, but I’m not anywhere near qualified to advise anyone on those matters. You need to find a good estate planning attorney if your attorney isn’t one already. That’s my best advice.

      Thanks,
      Kevin Graham

  64. my parents passed away. I lived w/ them. I’m not on the deed and not on the loan. the mortgage is $2,400.00 each month NOT including gas, electricity, and water. My name is on the will. I want to keep the home but the monthly mortgage is too high. I do not want to refinance. Would I qualify for a home modification? If so, I hope they can help me. My goal pay mortgage $1,098 each month or less based on my income and debts.

    1. Hi Catie:

      I will admit I’m not totally familiar with whether a loan mod can be done in an inheritance situation and under what circumstances. I’m going to get this to a Home Loan Expert who will know more.

      Thanks,
      Kevin

  65. My wife just recently passed away. We are both on the deed but she was the only one on the mortgage. I have more than enough funds to pay the mortgage off in full (it is a FHA loan) which I believe are insured; but that’s beside the point since I think that insurance covers the lender only if I do not pay off the home. I want to keep the home and pay off the mortgage in full — there is no pre-payment penalty. I could (if I had to even continue to make the monthly mortgage payment without any hardship on me what-so-ever. The only reason the mortgage is not in both of our names to begin with is my credit went in the sewer when I had a very mild stroke, followed by a bout of cancer and could not work. However, I was able to return to work (I am self employed) but not in enough time to repay so outstanding credit card debt and my late wife made a six figure salary so she qualified for the FHA loan, not me, but I am on the deed. I’ve spoken to an real-estate attorney but he told me for now just keep making the mortgage payments as usual as we have a second home that we were renting out the past three years and we decided to sell that one and again only my wife’s name is on the mortgage but there was a quit-claim deed made between myself and my wife in 2003 that the mortgage holder on that loan is taking into consideration so I can sell that property. If they don’t then I’ll just walk away from that one. However, the current home is the one I want to either pay-off in full or continue to make the monthly mortgage payments…..but that mortgage is with PNC and I have read Horror Stories about that bank so under the advise of my attorney I’ve not informed them of her passing which has only been a month ago. He told me to just keep making the mortgage payments on-line as usual until we hear back on if the other lender is going to allow me to sell the rental home. I’m in Florida and thankfully my wife had a ton of life insurance (but not enough to pay off both homes) and my social security check will be more than enough to pay the FHA mortgage held by PNC on our homesteaded house with money left over for everything else. Am I getting right advice from this attorney or should I find another one? She died intestate and her credit card debts (which amounted to a total under $10,000.00 were all cancelled and voided by her various creditors since I was not party to those credit cards in any manner whatsoever. I could have even paid off her credit card debt if I had to. My attorney upon hearing all of this (and he’s been in practice for 45 years) said that due to her credit cards becoming null and void and the company’s writing off the debt, there is absolutely no reason to go through a probate over one rental property if they refuse to allow me to sell it and I agreed because I want to use a portion of her life insurance to pay off the home I now live in that was our dream house.

    1. Hi Ronald:

      I’m very sorry to hear that your wife has passed. Your situation sounds very complicated, but I’m going to see if our home loan experts are able to give you any advice.

      Thanks,
      Kevin Graham

    2. I am in the same situation like you where the loan is under my wife name. I asked my lawyer and she told me that the bank has the right to ask you pay off loan based on the “Due on Sale clause” on the mortgage contract. She said a client of her did not inform the lender and keep paying. I had also asked our lender if I can assumed the loan. Some lenders said I can but need they need to process and determine if I can financially continue paying. So, it seems like I have to go through re-applying loan.

      Overall, I would recommend anybody planning to buy a house without the other spouse name please remember to buy any insurance to cover the loan. We are kind of stuck since she cannot buy life insurance.

      1. Tim:

        You’re correct to say that you do have to prove you’re financially able to make the payments. However, as long as that’s the case, they have to let you continue to make the payments as a surviving spouse under federal law. Mortgage life insurance is certainly an option, but you don’t have to buy it. You should just be able to continue making the payments.

        Thanks,
        Kevin Graham

        1. OK…it’s been about a month since my wife passed away. As for house #1 that was ‘easy’ they put the mortgage and deed in my name and approved me to sell the home. As for the property I currently live in, of which (again) the mortgage is only in my wife’s name but I am on the Deed, I have enough to make the mortgage payments and after I get the remainder of her life insurance I’ll have more than three times the funds needed to pay off the mortgage in full since the payoff is only around $107,000. However, because the mortgage is with PNC Bank who has more complaints than any other lender in the history of the world I’m going to let my attorney deal with them rather than attempt to deal with them myself in paying that one off.

          Unfortunately, she died intestate with no Will and she was the bread winner with a six figure salary. I’m semi-retired. She did however, also leave enough in a joint bank account with me to make up to (if necessary) six months worth of mortgage payments and because the payments are low, I actually could go on making them indefinitely if I had to but would rather just pay off the mortgage completely… which is what I intend to do.

          After my attorney looked over her ‘assets; he said that there is absolutely nothing to probate since she did not leave behind enough debts worth going through that hassle…She only had 7 credit cards (of which I am co-signer on two) and both have a zero balance. Her other cards; with the exception of one all have under $2000,00 balances on them and they all just closed the accounts and wrote off the balances. When my attorney saw this (and I should note I have not one but two attorney’s) they both said there was absolutely no reason whatsoever why PNC bank would not accept payment in full on the balance of the mortgage without me going through a huge hassle with them…nevertheless, if you Google “Complaints About PNC Mortgage” you’ll see why I’m going to let my attorney’s deal with them. In the meantime, I’ll just continue to make the monthly mortgage payments. As for house #1 I’ll continue to make the monthly mortgage payment on that one as well as the home equity line that is also on house #1 until it is sold. Financially, my wife left me in exceptionally good shape plus I get the highest maximum in social security each month. So, I’m okay… the ‘issue’ now will be PNC which I would not recommend to anyone based on what I’ve read about them on-line.

          1. Hi Ronald:

            I’m sorry to hear about your wife. That’s always hard. It sounds like you’re in pretty good shape and will eventually be able to pay off your house. You did the right thing getting attorneys involved if you weren’t comfortable yourself. Dealing with anything after the death of a loved one without a will is always a bit complicated. Please let us know if you have any other questions.

            Thanks,
            Kevin Graham

  66. My parents died two weeks apart leaving me their condo with a mortgage on it. My husband and can make the mortgage payments but would not qualify for a second mortgage because our credit has taken a beating over the past two years while I was caring for my parents and not working. Can I just make the payments on the current mortgage or even better can I have the mortgage transferred into my name so we can get the tax benefits from paying the mortgage? I would love to keep the condo and parents left me with no other assets to help with the mortgage. The house is in Florida but we live in Massachusetts.

    1. Hi Jennifer:

      I’m going to have a Home Loan Expert reach out to look into your situation and help you with your options.

      Thanks,
      Kevin Graham

  67. Hi need help..

    My uncle is dying of cancer and only has months to live.
    His mortgage left is 45, 000
    He want us to fund raise to pay his debts yet he has three adult children who could easily service the 60 euro a week payments.. he says if it’s not paid on full his ex wife will get the house..
    We are very uncomfortable about raising money when they have done nothing themselves..
    Please help with opinion and if any further info required please don’t hesitate to ask..

    1. Hi Justin:

      I’m very sorry to hear about your uncle. Quicken Loans® is an American lender and I’m not familiar enough with European law to know how the title transfer would work in the event of his death. I suggest consulting an attorney familiar with the laws in your country.

      Thanks,
      Kevin Graham

  68. my dad is in hospice care and put his current house in my name for a beneficiary deed. I can’t afford to take on another mortgage so will be selling my dad’s home. Will mortgage companies be willing to work with me during the selling process. For example, if it takes 4 months to sell the house, I can’t afford to make 4 months of payments on my house and my dad’s house. Are banks likely to give some sort of ‘reprieve’ time after a death if they know i will be selling it?

    1. Hi Amy:

      Unfortunately, due to the strict requirements investors have around investing in mortgages, the lender most likely cannot have you skip payments without it affecting anything. The best option is to find a way to continue making the payment, perhaps by leasing the property out. You do have the option of telling the lender you would like to do a short sale and they’ll work with you to offload the property. However, a short sale does have a detrimental effect on your credit and it could affect your ability to get a mortgage for some time in the future. I’m going to pass your comment along to one of our Home Loan Experts who may be able to give you more information than I can.

      Thanks,
      Kevin Graham

  69. i need help, I inherited moms house when she died 5 yrs. ago, Im the only heir, I’ve kept up the home equity payments, I never told lender my mom died, I was afraid they’d ask for full payoff, I’ve had escrow overpayment checks sent in my moms name so I never could cash them, also I had basement flood damage, the insurance company issued a check with my name and the mortgage company name on it, how do I get the lender to endorse it? The insurance check is for a furnace replacement and winter is here and we need a new furnace quick. The deed is in my name now, but the mortgage is still in my deceased moms name, I was uncertain what to do so I did nothing except continue the payments.

    1. Hi Sheila:

      Sorry to hear about your loss. The best thing to do at this point is just call the mortgage company and explain the situation. They will be able to go over your options. You need that insurance check, so you need to tell them. They’ll be able to work with you. Good luck!

      Thanks,
      Kevin

  70. My domestic partner passed away suddenly Nov 17, 2015, we live in the state of Washington. His rental property in Las Vegas has on file a “transfer on death deed”. Upon death the property is to transfer to me. The property has an FHA mortgage. The transfer of title seem easy but I’m unclear as to how the mortgage is to be handled. My credit is excellent and am capable of paying the monthly payments, but at this time my income is limited and my work history is spotty.

    1. Good morning, Elaine:

      I’m sorry to hear about your loss. My thoughts are with you. I’m going to send your question to one of our Home Loan Experts that can give you more information than I can.

      Thanks,
      Kevin Graham

  71. My grandma passed in September, she left me my home (which I had already been living in and paying the mortgage on for the past 5 years- it has been paid out of my bank account to the mortgage company EVERY MONTH on time or early), I do not have good credit to refinance., but I AM capable of continuing the loan. The will was probated and the tax office has the property listed in my name now, our attorney told me it was simply a matter of contacting the mortgage company and having the name changed on the loan. I have spoken to several attorneys and ALL of them have different answers. On several legal websites AND from a couple of different attorneys I have found out there is a federal law preventing the mortgage company to accelerate the loan, simply because I am a relative (granddaughter) The mortgage company told me to fill out this packet so they can add my name to it for communications, but if I wasn’t to become financially responsible I have to apply for credit. If I just put my name on for communications what does that mean? If there is an overpayment on escrow will the check sent be in my name? Can they still foreclose on the home if I am keeping payments current but am unable to qualify for credit???

    1. Hey, Kristi. First of all, I’m sorry to hear about your grandmother’s passing. That’s never easy. As for your question, in order to protect your info, I’m going to have a home loan expert reach out to you with an email. They’ll ask you some questions and point you in the right direction. Best of luck to you and your situation.

  72. Hi, I’m in very much the same situation as Chris. Been paying on it for 9 years. I have ok credit but not enough to qualify for a mortgage. I’m stuck paying 6.25% ? any chance the/a lender would work with me ? Worst part is making monthly payments on time for 9 years that don’t even improve my credit. Not sure how or if I can deduct anything.

    1. Good morning, Alex. I’m going to send your question to one of our home loan experts. They’ll shoot you an email and help you worth through your options. Thanks for asking!

  73. My father passed away in January and my mother’s health is deteriorating. There mortgage has been paid off for years now. My dad’s Will has been probated and we have the letters testamentary. My mother is the executor. Does the deed need to be put in my mothers name only, or can we leave it as is?

    1. Thanks for reaching out to us, Susan. I’m sorry to hear about your mom’s current health and the loss of your father. I have shared your inquiry with our client relations team, and they’ll be in touch with you to discuss this further. Have a nice day!

  74. I have a question , my mom past some 7 years ago , the condo was left to me , I live in it. All I did was continue to pay the mortgage monthly along with the association fees. I figure there is about 30K on the buy out and I don’t have that …..and I have run into finacial difficulties . My question is how to sell it and what I have to do to do that . I have no clue but I certainly do not want to loss here either. It is not in my name I just paid the bills thus far. Thank you

    1. Hi Chris! I’ve passed this one to our team of home loan experts who will take a look and reach out o you shortly.

  75. My husband passed away and our house is upside down here in Las Vegas, Nevada. I have lost $6,000 in income and want to know what my options are? I cannot afford my current mortgage but have continued to pay it.

    1. Hi Vickie! Thanks for reaching out! I’ve passed your comment on to our team of mortgage experts and they’ll reach out soon to discuss your options.

  76. In my case, I have about the same amount of principal payment left on my loan that equals the amount fully guaranteed by the VA. So, I don’t believe the mortgage holder would go after any of my relatives, who certainly would not want to pay it off, when it could just collect from the VA – right?

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