Can a mortgage company foreclose in this situation?

[Mike355F1]

Jurisdiction

Pennsylvania

Hello, 10 years ago my mother was dying of cancer. She wanted to sell my brother her house for what was owed on it. She transfered the deed in to his name at the county. He was unable to get a mortgage in his name due to lack of credit. He therefore just continued paying her mortgage for the past 9.5 years since she died. Last week he had a water pipe burst and flood the house. The insurance company issued a check out to him and my mothers mortgage company. The mortgage company is refusing to sign off on the check since the mortgage is not in his name even though they have record that he has been paying it all these years and the insurance and deed are in his name. Since they are being such jerks we wanted to know what if any obligation does he have to pay on the remainder of the mortgage since the deed is already in his name? Can they foreclose on the house even though the debt is my mother's but the deed is only in my brothers name? Thanks!

 

[army judge]

Since they are being such jerks we wanted to know what if any obligation does he have to pay on the remainder of the mortgage since the deed is already in his name?

Your brother isn't responsible for the mortgage.
His name on the deed means very little, if anything, at this point.
Your mother died, and depending upon what was done with he restate 10 years ago, there could be a mess today.

Your brother could stop paying the mortgage today, and eventually the lienholder will seek to enforce its rights.

The debtor is deceased.
The only recourse would be to go after her estate, which 10 years later would seem to be a futile task.

Can they foreclose on the house even though the debt is my mother's but the deed is only in my brothers name?

Yes, the lien is against the deed.
Your mother transferred her ownership to your brother, which failed to resolve her debt.
If I were your brother, I'd begin effecting my departure from the home today.
Based upon how long foreclosures take, he could remain where he is for anywhere between 12 to 18 months.

However, that's just an estimate nationally, and lenders can seek to expedite the foreclosure process.

 

[Highwayman]

Can they foreclose on the house

Of course they can - and they will.

Instead of handling your mother's estate at the time of her death legally, it seems like the family decided to just make up their own rules. That is being a "jerk", not the bank's behavior.

 

[txls]

Your mother did not have the right to convey the property without satisfying the mortgage. You say the bank has record that he has been paying. That means nothing as far as legal ownership. They are not being jerks. They have legal restrictions on what they can and cannot do.

 

[Mike355F1]

The deed was transferred by a lawyer and we were doing things based on what he said. Also, there is nothing illegal about what was done. A person can legally assume the mortgage of an inherited home. The Garn-St Germaine Depository Institutions Act of 1982 allows for a relative who inherits a mortgaged home to take over the mortgage payments.

 

[Mike355F1]

Of course they can - and they will.

Instead of handling your mother's estate at the time of her death legally, it seems like the family decided to just make up their own rules. That is being a "jerk", not the bank's behavior.

Of course they can - and they will.

Instead of handling your mother's estate at the time of her death legally, it seems like the family decided to just make up their own rules. That is being a "jerk", not the bank's behavior.

The deed was transferred by a lawyer and we were doing things based on what he said. Also, there is nothing illegal about what was done. A person can legally assume the mortgage of an inherited home. The Garn-St Germaine Depository Institutions Act of 1982 allows for a relative who inherits a mortgaged home to take over the mortgage payments.

 

[Mike355F1]

Your mother did not have the right to convey the property without satisfying the mortgage. You say the bank has record that he has been paying. That means nothing as far as legal ownership. They are not being jerks. They have legal restrictions on what they can and cannot do.

My mother was sick and dying and let a lawyer handle it and I was not involved. I was just trying to get some info for for my brother. Thanks

 

[txls]

Okay that's great if everything was done properly with a lawyer. Did the bank say why they won't sign the check over to him. Have all of the repairs been done? They do have the right to keep the insurance funds if repairs have not been done.

 

[zddoodah]

what if any obligation does he have to pay on the remainder of the mortgage since the deed is already in his name?

Probably none.

Can they foreclose on the house even though the debt is my mother's but the deed is only in my brothers name?

Of course the mortgage lender can foreclose. The mortgage is an encumbrance against the property. Your brother took title subject to that encumbrance. If the mortgage doesn't get paid, the lender can and almost certainly will foreclose.

The smart thing for your brother to do probably is to sign it over to the mortgage lender so that the money can be credited against the balance of the mortgage.

 

[ElleMD]

I'm not an expert by any means but the act you reference involves whether the mortgage can be due on sale when it transfers hands. It sounds like what your brother might have done was assume the mortgage. That isn't the same as just making the payments in mom's place. All of this is second and third hand so I don't know what your brother might have done or why. HIS best bet is to talk to a real estate attorney pronto.

 

[zddoodah]

The Garn-St Germaine Depository Institutions Act of 1982 allows for a relative who inherits a mortgaged home to take over the mortgage payments.

That's true. However, according to your post, your brother didn't inherit the property.