My grandmother bought the home we lived in the 90s for 90k at a 8% interest rate. I found out she refinanced the house several times from what seems like predatory practices and malicious advice and now owes 250k at 6%. Basically the house I thought was paid off now has 30 mortgage and she is 90. Her grandkids are in the will to inherent the house but do we inherent this mortgage?
She couldn’t like sell us the house for less than it’s owed? And she takes a loss?
She’d have to pay the remaining balance before the bank will release the lien.
For a short sale like that the creditor/mortgage company would need to approve. If you’re thinking of doing something like that or simply walking away from it you’d be best off getting in touch with someone who does estate planning, but in any case that mortgage is gonna remain stuck on that house, the house basically serving as collateral for the balance due