Monday, 21 April 2014

My aunt left me and my brother her house in her will when she died but she took out a loan a reverse mortgage on house so is the will still...

Question

My aunt left me and my brother her house in her will when she died but she took out a loan a reverse mortgage on house so is the will still in effect because of the loan



Answer

The security interest that the mortgage company has on the property has no bearing on the terms of the will. You will need to determine if there is any equity in the property and her it is worth probating.



Answer

You need to act promptly. Reverse Mortgage lenders usually have a 6 month payback provision or they will initiate foreclosure and you can lose the equity that may exist.



Answer

The will is effective, but the house is subject to the reverse mortgage.



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