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Inherited Mortgage

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DomaneRider
Valued Member

Inherited Mortgage

Good Morning everyone.

 

I just recently inherited a home from my mother.  It has a mortgage attached to it.  I assumed the loan and the mortgage company has my SS# and the rest of my personal information.  I have the proper insurance and the deed to the property is in my name.  Will the mortgage company now start to report the debt to the credit bureaus under my SS#?  How will this all play out?  I'm just wondering how it will affect my credit.  I didn't actually apply for a new loan. 

Thanking everyone in advance for their feedback and/or comments.  

Message 1 of 12
11 REPLIES 11
LakeLife
Established Contributor

Re: Inherited Mortgage

Replying because I'm interested in the answer to this.




Message 2 of 12
JoeRockhead
Senior Contributor

Re: Inherited Mortgage

There are several different scenarios when it comes to inheriting property with a mortgage. If you have legally assumed the mortgage with the lender then it will now show up on your credit report as the legal responsibility for repayment has been transferred away from your mother to you.  

Message 3 of 12
Linnaea
Frequent Contributor

Re: Inherited Mortgage

FOLLOWING

Message 4 of 12
DomaneRider
Valued Member

Re: Inherited Mortgage

Thank you. This is all new to me. I appreciate your feedback.

Message 5 of 12
pizzadude
Credit Mentor

Re: Inherited Mortgage


@DomaneRider wrote:

Good Morning everyone.

 

I just recently inherited a home from my mother.  It has a mortgage attached to it.  I assumed the loan and the mortgage company has my SS# and the rest of my personal information.  I have the proper insurance and the deed to the property is in my name.  Will the mortgage company now start to report the debt to the credit bureaus under my SS#?  How will this all play out?  I'm just wondering how it will affect my credit.  I didn't actually apply for a new loan. 

Thanking everyone in advance for their feedback and/or comments.  



@DomaneRider wrote:

Good Morning everyone.

 

I just recently inherited a home from my mother.  It has a mortgage attached to it.  I assumed the loan and the mortgage company has my SS# and the rest of my personal information.  I have the proper insurance and the deed to the property is in my name.  Will the mortgage company now start to report the debt to the credit bureaus under my SS#?  How will this all play out?  I'm just wondering how it will affect my credit.  I didn't actually apply for a new loan. 

Thanking everyone in advance for their feedback and/or comments.  


What paperwork did you complete, sign and receive from the mortgage company ? 

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 6 of 12
DomaneRider
Valued Member

Re: Inherited Mortgage

There was a form they sent me that I needed to have notarized and completed within a specific time frame.  I have a hard copy of it stored with my mortgage and deed paperwork.   I'll look at it when I get back home. 

Message 7 of 12
DomaneRider
Valued Member

Re: Inherited Mortgage

The document was called "An Assumption and release agreement".  It was 4 pages. 

Message 8 of 12
GreatLife
Regular Contributor

Re: Inherited Mortgage

LONG time ago we were going to buy a house that offered an old school type of VA loan assumption. Only requirement was the mortgage had to be current at time of transfer. No credit check or DTI was required for the buyer, just show up with ID and sign the 3 or 4 page assumption papers. We were told our CR's would show a new mortgage in amount of the assumption balance. We decided to get title search & insurance. Found out the sellers had an outstanding secondary loan on the house, AND a lawsuit was going on between the sellers and a cosigner for the secondary loan. IMO title insurance could be a peace-of-mind investment for yourself & your future heirs. IMO it can't hurt to establish a clear chain of title, also protect your inherited property from anything or anyone that might unexpectedly pop up in the distant future.

Message 9 of 12
DomaneRider
Valued Member

Re: Inherited Mortgage

WOW!!! I'll look into title insurance immediately. 

Thank you.  

Message 10 of 12
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