beneficiary deed Bank wants me to assume the loan

[sscrip]

What is the name of your state (only U.S. law)? AZ

My mom passed away in April of this year. she had completed and recorded a beneficiary deed naming me as sole beneficiary to her house which has a mortgage on it. I sent the bank the death certificate as well as a copy of the recorded deed. Today I got a letter asking about her estate. I have not opened probate as the beneficiary deed was done to avoid having to go through probate. I have not applied to be her personal representative because mom owned no other property. She had $376 dollars in a checking account which I closed and used the money to pay the little bit of debt she had.

The letter wants to knbow my plans for the property. (I plan to live here) The wording of the letter concerns me as it asks me to check all that apply:

The estate has an interest in retaining the property and will continue to make the mortgage payments without assuming liability of the note.

I am not the esate I am the beneficiary. Do I check this option? Can they make me assume the loan? (they said it will cost me $1000 for the fees to assume it)

What does it mean if I pay but do not assume liability of the note? Will that effect my ability to deduct the interest on my taxes?


Do I need to apply to be the personal representative of the estate if the only asset was the house and it went to me per beneficiary deed?

Am I even posting this in the correct forum?
any help would be appreciated.

 

[tranquility]

Complex situation. Many things involved. I'm writing short as have other things to do. But, don't "assume" the loan. Let it be on the property alone and not you and the property.

 

[justalayman]

simply tell them you will continue to pay the mortgage loan but will not be assuming it. The law allows for this option so don't let them push you into assuming the mortgage loan (formally).

 

[sscrip]

Best way to reply??

So should I just write them a letter telling them I have already provided the beneficiary deed and that I plan to live in the house and continue to pay the mortgage payments as they become due, without assuming the loan? I am weay of checking their statement that says the estate has interest in retaining the property because their was no other real property in her estate. So I don't know if an "estate" even exists


Do you know how not assuming the loan will effect my ability to claim the loan interest on my taxes?

 

[tranquility]

So should I just write them a letter telling them I have already provided the beneficiary deed and that I plan to live in the house and continue to pay the mortgage payments as they become due, without assuming the loan? I am weay of checking their statement that says the estate has interest in retaining the property because their was no other real property in her estate. So I don't know if an "estate" even exists


Do you know how not assuming the loan will effect my ability to claim the loan interest on my taxes?

If you are the owner of the property, case law will have you be considered "responsible" for the loan as you could lose the property if you don't pay. While it might be an argument some day, it is deductible.

 

[sscrip]

Thank you for your help