Friday, July 18, 2014

Inheriting A Property May Cause Financial Distress

When someone inherits a property upon a death sometimes it's a great thing to keep it in the family. Or maybe for the surviving spouse still to have a place to live.

However, what if the survivor, or inheritor, can't necessarily afford the mortgage? Or what if they aren't even on the loan to begin with? Then what happens?

Getting a property due to a death that has zero debt is wonderful. Getting one that has a debt, sometimes is not so wonderful.

The Consumer Financial Protection Bureau  has issued a new ruling so that the lender can't foreclose on the survivor, regardless if they are on the mortgage or not.

"Losing a loved one should not mean also losing your home. Today's interpretive rule makes it clear than when family members inherit property, they can take over the mortgage without jumping through unnecessary hoops" said CFPB Director Richard Cordray. " This gives heirs an opportunity to work with the lender to pay off the loan or seek a loan modification.

The ruling took place in the beginning of this year. It won't necessarily put the inheritor on the loan but it gives them virtually the same rights.

One less thing to worry about when a loved one passes.

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