inheriting a house: getting a new loan or not???

[mrslunar]

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

We inherited a house we'd like to keep and we can financially make the payment on the mortgage.

I have asked in the Wills and Estate forum but this seems to be more of a mortgage expert question...

If we do want the house and it currently has a mortgage on it, can we simply assume the current mortgage and just transfer it into our name or do we actually have to go through the process of obtaining our own mortgage? I'm not asking if I have to make the payments...I am aware that if we want the house that since it has a mortgage, that needs to get settled some how. My question is if the lender (happens to be Wells Fargo) will usually generally just move the loan into the beneficiaries name and just continue to receive payments or if it's normal for a lender to make a beneficiary obtain their own financing on their own merits?

 

[HomeGuru]

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

We inherited a house we'd like to keep and we can financially make the payment on the mortgage.

I have asked in the Wills and Estate forum but this seems to be more of a mortgage expert question...

If we do want the house and it currently has a mortgage on it, can we simply assume the current mortgage and just transfer it into our name or do we actually have to go through the process of obtaining our own mortgage? I'm not asking if I have to make the payments...I am aware that if we want the house that since it has a mortgage, that needs to get settled some how. My question is if the lender (happens to be Wells Fargo) will usually generally just move the loan into the beneficiaries name and just continue to receive payments or if it's normal for a lender to make a beneficiary obtain their own financing on their own merits?

**A: you would need to refinance the exisiting mortgage loan if you are not the spouse of the deceased.

 

[mrslunar]

wow that was easy! thanks!

do you happen to know if we cannot obtain financing, then would the default just be for the bank to repo the house?

 

[HomeGuru]

wow that was easy! thanks!

do you happen to know if we cannot obtain financing, then would the default just be for the bank to repo the house?

**A: that sounds like a reasonable thing for the bank to do.

 

[mrslunar]

thank you!

 

[FlyingRon]

It doesn't have to be a spouse. If this is a single family residence, the transfer to a relative on death of the borrower can not trigger a due-on-sale clause.