My mother passed away in 2011. I am on the deed to her house. I've been paying 2 mortgages (in her name) since then. I want to refinance but...

Question

My mother passed away in 2011. I am on the deed to her house. I've been paying 2 mortgages (in her name) since then. I want to refinance but can't since the house does not appraise out to the balance of both mortgages. The HELOC payment will go UP 400.00 in a year to 600.00 a month. I cannot afford this payment. Should we foreclose?

Answer

Owners don't foreclose, banks do. If you live in the house, you may try to negotiate a mortgage modification, although if you have 2 mortgages, that will be tough. If you don't live in the house, you could try to offer a deed-in-lieu of foreclosure, but frankly, I'm not sure how that would work with a second mortgage, since the first mortgage has priority, meaning that it controls the situation. You should consult a lawyer who represents owners in foreclosures to deal with both lenders.

THIS RESPONSE IS NOT LEGAL ADVICE, SINCE I DO NOT HAVE ALL OF THE INFORMATION THAT WOULD BE REQUIRED, AND I DO NOT HAVE A REPRESENTATION AGREEMENT WITH YOU.

* If the answers to your question confirm that you have a valid issue or worthwhile claim, your next step should almost always be to establish a dialog with a lawyer who can provide specific advice to you. Contact a lawyer in your county or township.

* Another reason for contacting a lawyer is that it is often impossible to give a good answer in the Internet Q&A format without having more information. The unique circumstances of your situation and things that you may not have thought to mention in your question may completely change the answer. If you want to be sure that you have a complete answer to your question and an understanding of what that answer means, establish a connection with a lawyer who practices in the area of your concern.