Refinance the Home of a Deceased Person
The bank holds the title of a home until the mortgage is paid off. If the homeowner dies before the mortgage is paid off, the name of the deceased is still on the title. The home cannot be sold or refinanced without a transfer of the title. A new owner has no legal claim to the home until the title is changed. The process can be easy or complicated, depending on whether the homeowner had a will.
Instructions
1. Find the will. If you have inherited the estate, then you have the right have your name placed on the title after going through the probate court process. If you are a spouse and your name is on the title, then you must have the deceased person's name removed in probate court before the home can be refinanced.
2. Go to probate court. If the deceased left no will and you are the next of kin, go to the probate court and ask to have your name placed on the title. The process of determining next of kin can be complicated if numerous parties are claiming ownership of the home.
3. Once your name is on the title, have the home appraised. If the home value has appreciated since the original homeowner took out the mortgage, you will be able to refinance the loan at a lower interest rate and gain access to equity funds.
4. Talk to the bank. With your name on the title, the transaction is no different from any other standard home refinancing. You will apply for the refinancing, negotiate interest rates and payback dates and then be granted the loan if you qualify.
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