Do I Need To Pay My Deceased Parents Mortgage- No Will Left?

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I am asking this question for my mom. She is the only survivor of my grandparents which are now deceased and have left no will. My grandparents got a loan with a mortgage lender using there home as collateral and left a balance owing. Someone told her that all she had to do was send lender copies of death certificates and title to home would be clear. Is that possible? Insurances left were merely enough for funeral expenses. My mom does not want to lose the home and has been making out of pocket payments since my grandfather was in the nursing home two years ago. Moms income has dropped dramatically and now the State of Texas wants to claim the home for nursing home expenses…my grandfather had both Medicaid and Medicare since 1996 and all his monthly pension went directly to the home the entire two years he was there. What can she do to the keep the home? Is she liable for the balance on the mortgage? She wants to keep the home but have her payments been in vain since the State of Texas wants to claim the home? Any help is greatly appreciated.

  1. Reply
    James Banmark
    May 3, 2011 at 11:33 pm

    Tell her to hire a real estate attorney ASAP. If she waits too long, and payments are missed, the Bank will come in and take the home. All the payments your grandparents made would have been free money to the bank. THE BANK WILL TAKE EVERYTHING. If your mom acts quickly, she can claim the house and either (make the payments) or sell it. There is equity in that house, dont let it go to the evil bank.

  2. Reply
    May 3, 2011 at 11:56 pm

    Your mother needs to consult an attorney ASAP.

    If medicaid paid any part of your grandfather’s nursing home expenses, then the state of Texas is going to want to be reimbursed with the proceeds from his estate. Nursing homes are expensive. Maybe his pension didn’t cover all the costs after all.

    She is not liable for the balance of the mortgage. And, yes, she shouldn’t have been making payments on a home she didn’t own. She may need to purchase the home from your grandfather’s estate after the state of Texas and any other possible heirs get their share.

    Did your mother have any siblings who are also deceased? If so, and if those siblings had children, then those children also have the right to inherit parts of your (their) grandfather’s estate. All that should be sorted out in probate.

    Good luck

  3. Reply
    May 4, 2011 at 12:13 am

    She is only liable for the mortgage, if she wants to keep the house.
    If she wants to sell it, she gets any proceeds after all the other bills are paid, including the nursing home.

    But she should take to an estate attorney to find out her legal rights.

  4. Reply
    dog ma
    May 4, 2011 at 12:28 am

    The state will have already placed a lien on the home for the costs of keeping your grandfather in a nursing home. That is in addition to the mortgage. Your mother is not responsible for paying the mortgage, but there is very likely no equity whatsoever left in the house, and it will need to be sold to satisfy these liens.

    She can try to purchase the home and get her own financing on it, but she really does need legal advice at this point. If her income has dropped, she may not qualify. Her payments have not been in vain – she would have had to pay rent to live anywhere else, but making the payments does not give her a right to the house. The estate must be probated according to your state’s laws, and the house will likely have to be sold.

  5. Reply
    Mr Placid
    May 4, 2011 at 12:44 am

    If mom wants to keep the home, then mom must make the mortgage payments, and deal with the Texas Medicaid lien. The mortgage attaches to the property, not the borrower, so the borrower’s death is irrelevant. The lender wants its money, and will foreclose if the mortgage is not paid.

    If mom doesn’t want the home, then mom does not need to do anything. Mom is not independently liable for the mortgage. The home will be a matter for the mortgage lender and Texas medicaid to sort out.

    Advice: To avoid a huge headache, tell your mom to lose her emotional attachment to the home.

  6. Reply
    May 4, 2011 at 12:58 am

    I am no expert but if the house is not paid off she does not have title to it. Her name is not on the mortgage documents or the deed and there was no will. Also, if your grandfather was on Medicaid and that was paying for his nursing care, legally the nursing home can put a lien on the house and sell it to pay back all that was paid by Medicaid for y our grandfather’s care. You see, a nursing home costs about $ 5000 a month but your grandfather did not pay much of that. His social security paid a fraction of that, so he owes the nursing home money which they get by placing a lien on the estate. To keep the house, your Mom would have to pay back Medicaid which she obviously cannot do.

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