False: Unfortunately a death in a family will not only have an emotional stress but also may become a financial burden. If the beneficiary wants to keep the property they must repay the loan under the same terms and conditions as the original borrower.
Hopefully the deceased family member’s will clearly implies who will pay for the mortgage. The will could state that the beneficiary can sell assest such as: stocks and bonds, in order to pay the mortgage. They can then decide if they can afford and maintain the property or the beneficiary is able to sell the home and take the equity from the proceeds minus legal fees. In our current real estate market, the property may be worth less than the mortgage currently held and a short sale is required-another burden in itself.
It is important to have a great team to assist you in the important decisions such as an real estate attorney, Certified Public Accountant, and local real estate agent with probate experience like myself. If you need a local real estate agent in the Hollister, San Juan, Aromas, Gilroy, Salinas, Monterey, or other area, please contact Kristen Jurevich with Intero Real Estate Services at 831.635.6719.