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Thread: Question about Wills and Mortgage (NEED ADVICE RIGHT AWAY)

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    Default Question about Wills and Mortgage (NEED ADVICE RIGHT AWAY)

    My friend has called a lawyer and hasn't called back (weekend) and he's really worried so i thought i would ask.

    A friend of mine was renting a house for years, the landlord put his name on his will, the landlord died on wedesday. My friend didn't even know about the will. It was the landlords sister that is the executor and mentioned it to him. He is in complete shock.

    The house still has $300,000 owing

    No mortgage insurance etc.

    My friend has NO credit (always rented)

    So the bank owns the house (royal bank) but its willed to someone other then the bank of course.

    WHAT HAPPENS?

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    I'd guess that the property will be sold at market value - the bank will take their share, and the balance (actual equity after conversion to cash) will be your friends.

    But of course, I'm not a lawyer. If I was, I'd have charged you a few hundred bucks for this lousy consult.

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    Originally posted by Z_Fan


    But of course, I'm not a lawyer. If I was, I'd have charged you a few hundred bucks for this lousy consult.


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    Originally posted by Z_Fan
    I'd guess that the property will be sold at market value - the bank will take their share, and the balance (actual equity after conversion to cash) will be your friends.

    But of course, I'm not a lawyer. If I was, I'd have charged you a few hundred bucks for this lousy consult.
    Even if he can't qualify for a mortgage can't he assume it some how?

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    Originally posted by 2BLUE


    Even if he can't qualify for a mortgage can't he assume it some how?
    You answered your own question.

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    Originally posted by CanmoreOrLess


    You answered your own question.
    : good one

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    You can assume without credit?
    Sometimes you have to take a chance, whether that be on someone, or something!

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    Well, I'm not sure what happens to a mortgage of a deceased person. Not sure that it can be assumed at that point.

    In any case, NO, you can't assume a mortgage with out credit. You've still got to be able to qualify as you are still a risk as far as the bank is concerned.

    From RBC on Assumable Mortgages:

    You can use this option to offer your mortgage to a prospective buyer, who can take it over with the purchase of your home if he or she qualifies for an RBC Royal Bank mortgage.

    But still, I think because this person died, the bank is ultimately going to decide what is going to happen with this property.

    Let us know how this turns out.

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    I didn't think you could have a mortgage without mortgage insurance or life insurance high enough to cover the debt.

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    Originally posted by Darell_n
    I didn't think you could have a mortgage without mortgage insurance or life insurance high enough to cover the debt.
    nope. it's optional.

    that's a pretty nice landlord he had there... rip

    sucks cuz now he might have to move if he can't assume the mortgage. but yes he will need to qualify to get a mortgage

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    You can have a mortgage without insurance.

    The bank has a registered interest in the house, so if your friend does not have the money to take over the mortgage, it gets sold and the proceeds of the sale pay out the bank's interest. It cannot be transferred into your friends name before someone pays it off, and whether that is the estate or you depends on the provisions of the Will and the value of the estate.
    Original Post NAZI Moderated


    Originally posted by r3cc0s
    Felon or Mistermeiner

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    Default Re: Question about Wills and Mortgage (NEED ADVICE RIGHT AWAY)

    Originally posted by 2BLUE


    My friend has NO credit (always rented)


    Are you suggesting he has no credit BECAUSE he always rented? Or is it because he's lousy with money? Just because he's a renter doesn't mean he has bad credit...

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    Default Re: Re: Question about Wills and Mortgage (NEED ADVICE RIGHT AWAY)

    Originally posted by Tik-Tok




    Are you suggesting he has no credit BECAUSE he always rented? Or is it because he's lousy with money? Just because he's a renter doesn't mean he has bad credit...
    He really hasn't needed a credit card or anything. So in turn paid cash for everything.

    So to confirm. Bank sells house and anything over and above whats owing, my friend would get. Makes sence. The only issue is he wants the house. Maybe a private lender might be an option.

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    Default Re: Re: Re: Question about Wills and Mortgage (NEED ADVICE RIGHT AWAY)

    Originally posted by 2BLUE


    He really hasn't needed a credit card or anything. So in turn paid cash for everything.

    So to confirm. Bank sells house and anything over and above whats owing, my friend would get. Makes sence. The only issue is he wants the house. Maybe a private lender might be an option.
    Still doesnt mean he cant get a mortgage. If loan to value is low and he has decent income. He can very well get a mortgage on his own.

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    Creating credit for your friend is relatively easy as long as the rest of the application is strong. The tough part is to create a credit score for him without any other credit is he needs a letter from his landlord and confirmation that he has made his payments on time every month for a 12 month period by way of bank statements showing the money coming out regularly plus one additional credit source for a 12 month period (ie. cell phone, cable, internet, energy bill, etc).

    If his income is good then he could consider qualifying for the mortgage.

    Hope this helps!

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    Default Re: Question about Wills and Mortgage (NEED ADVICE RIGHT AWAY)

    Originally posted by 2BLUE
    the landlord died on wedesday

    Originally posted by tpurcell4
    Creating credit for your friend is relatively easy [...] he needs a letter from his landlord[...]

    Originally posted by Vagabond142
    Is the best game. Ever. In everness. It is more awesome than a robot caveman punching God in the dick. It is that awesome

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    ^^


    I'm sure there is a way around that with the will.

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    So to finish this thread...

    House is getting auctioned off and whatever is left my buddy will get. Royal Bank has pretty much said he won't get anything. Auction sales go for way under value on most cases.

    So that's that!
    Sometimes you have to take a chance, whether that be on someone, or something!

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