questions & answers

Question: My father (73) was diagnosed with lung cancer few months ago. I do not know how much time he has left. He owns a house in Mesa, and my sister lives with him. The house is under his name and he has a will that divides evrything he owns 50-50 between my sister and me. Now, when he passes away, can my sister still be in the house and assume mortgage payment? If my sister and I want to sell the house after my father's departure, can we do that? If so, how does that work?

Answer: If the equity value of the property exceeds $75,000 you will need to open a probate in order to transfer the house or sell it. The title company will not allow the sale or transfer without the court documents (assuming the equity is over $75,000). A typical mortgage has a clause that says if the property is sold, transferred or the guarantor (your father) dies, then the mortgage is due in full. You may try and refinance the property or ask the mortgage holder if you can assume the payments. That decision is up to the mortgage holder.