Am I still responsible for paying a loan that mom signed, and that I can no longer afford?

1 answer | Last updated: Sep 28, 2016
Januari asked...

my mother died in October last year 2010...and she left me a house...and with the insurance policy money left after funeral arrangements I have been paying the monthly mortgage payments, and I now have an administrative deed on the i still responsible for paying a loan that she signed that I can no longer afford? or can I now go refinace the home myself.

Expert Answers

I am unclear what your ownership situation is regarding the home. You state that after your mother died you have been making the monthly mortgage payments on the home [OK] and you "now have an administrative deed on the home." I do not know what an "administrative deed" is. Has the home been legally transferred into your name, either through probate or some other legal process? In other words, is your nameon a deed to the home, a deed that has been recorded at the county recording office? If the home is legally in your name, you can try to refinance the house. If the home remains legally in your mother's name, you need to get the deed, and ownership, legally transferred to you before you can try to get refinancing.

Children are generally not responsible for paying off a parent's debts. But if you inherit a house from your mother (or from anyone) you inherit the mortgage that goes with it. You cannot simply accept the house and ignore the mortgage. Even if you are now the legal owner of the home, you remain responsible for paying the mortgage payments, unless and until you can refinances the house and so wipe out the existing mortgage