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To inherit my brother's property, will I need to go through the mortgage company?

Tbortiz asked...

I will be willed my brother's condo in San Diego when he passes on. I know I will have to change name on the deed, but, will I have to go through a mortgage co. to finance or can I continue making paymens without having to take out another mortgage. ???

Expert Answer

Judy and Fred co-mediate family property and financial conflicts, and each work individually as mediators as well. Judy Barber, a mediator and family business consultant, assists clients in resolving overlapping family and money conflicts so they are better able to make sound estate planning decisions. Frederick Hertz is an attorney and mediator who specializes in resolving co-ownership matters involving families, siblings, spouses, cohabitants and domestic partners.

There is no universally correct answer to your question. Once you become the owner of the property, either through a probate or a trust administration, you will need to contact the lender. Some lenders will allow you to assume the mortgage or continue to make payments, whereas others will insist on your getting a new loan. The outcome will depend on a variety of circumstances - how much it is worth, how big is the loan, and what is your financial situation. Some folks who inherit property don't voluntarily tell the lender that there has been an inheritance, and sometimes the lenders are fine so long as the payments are made in a timely manner. Our suggestion is that you wait until the time comes, and then you should consult with an experienced probate administration lawyer in your area, who will be able to guide you through the process.