Will the bank take the home my father willed to us because we have poor credit?

3 answers | Last updated: Mar 13, 2017
A fellow caregiver asked...

My Father was sick in the hospital for 18 months. about 2 months before he passed away he signed the house over to myself and my sister. we took care of all of the legalities and the house is in our name and was before he passed about 2 weeks ago. we planned to just continue paying the mortgage but have just received paperwork from the bank with forms in regards to the status of his estate. will the bank make us take out another mortgage? Both my sister and I have poor credit.. Can we lose the house that my father signed over to us? Will we not be able to get a mortgage so that we can keep it because of our credit?

Expert Answers

There is too much I do not understand about the transfer of the house from your father to you and your sister for me to be able to give you a definite answer. I can tell you that in general,when someone inherits a house with a mortgage on it, that mortgage simply goes with the inheritance. The inheritors can continue to make the same mortgage payments as the prior owner did. I have never seen or heard of a bank demanding a new mortgage because of the inheritors' credit rating or poor credit.

But, as I said, I don't understand what's going on here. How did the bank learn that that your father had died.? Why do they want to know about the status of his estate? Did your father have any estate, aside from the house? Are there creditors of your father's who might want to come after the house to collect debts your father owed them? If there are, the transfer could be considered a fraud upon creditors. But why would the bank be concerned about a possible fraud, since it couldn't have been against the bank?

I'd proceed cautiously with the bank. Ask them why they want to learn about your father's estate, and proceed from there.

Community Answers

Geo2015 answered...

I think the expert is right. Why would the bank re-open a credit checking process on the heirs of the person who was originally approved for that mortgage? The expert is correct, the bank will just keep on taking your checks... what do they care about the heirs' credit, as long as they keep sending in those checks.

Geo2015 answered...

As a matter of fact, when it comes to inheriting real estate or liquid assets, cash, whatever, no one who is dealing with the estate or the heirs on a financial level cares about the credit standing of the heirs -- all they ever seem to care about is the heirs' status as legitimate heirs, and the inheritance they are receiving. I've been asked many times by heirs, but I've never seen a poor credit report or lousy credit score become a problem in any way for heirs anytime, during probate or otherwise... inheriting real estate or investment accounts, cash or whatever. From what I've seen, any financial people dealing with the estate or the heirs never seem to care about the heirs' credit even a little bit.

Interestingly enough, even inheritance loan companies, where many beneficiaries and heirs go to apply for fast probate real estate loans or trust fund inheritance money, don't really factor in an inheritance cash advance or probate loan or trust advance applicant's credit report or credit score, or even their job history or income status. It's the real estate being inherited, or liquid assets inheritance and estate paperwork that always seems to matter, not personal financial status or credit history. In fact when I see heirs getting probate cash advance funds or trust fund loans from inheritance advance companies, I don't ever recall credit being an important factor in that probate loan or inheritance advance decision making process.

And it's a good thing for most middle class heirs that credit isn't, for once, a big deal. Most middle class people don't have stellar credit these days, as we all know.

And for heirs borrowing against their inherited home, getting a loan on inheritance, it's difficult enough as it is, without worrying about if their income looks OK, or good or bad credit reports and credit scores, as they get totally wrapped up researching estate loans, estate advances, inheritance loans, large and small inheritance advance loans and inheritance advance assignments... probate loans, and probate real estate loans — along with urgently submitting inheritance cash advance, probate advance, probate loan, or probate cash advance applications to various online probate loan and trust inheritance loan companies that only provide loans on inheritance, inheritance loan advances, probate cash advance funds, inheritance loans in advance, and loans against inheritance, from well known, very established trust or probate real estate loan, inheritance cash advance, estate loan companies such as www.heiradvance.com, or trust fund advance, probate cash advance companies like www.inheritancenow.com or www.inheritanceadvance.com. Established probate real estate and inheritance loans specialists that have been providing professional inheritance advance services for years. Not too many 7-figure inheritances, but hey, a modest home or other middle class inheritance is way better than no inheritance at all, right?