Legal Question in Real Estate Law in Arizona
My grandma has offered to buy a house in her name in an effort to take advantage of low prices and interest rates. She is now 90 years old and I was wondering if she dies and wills the property to us, will the mortgage transfer or will we have to get separate financing?
1 Answer from Attorneys
If she leaves the property to you in her Last Will, then you would receive it subject to the existing mortgage, if there is one. The loan will probably provide that it is all due and payable upon her death, however, it seems to be the common practice, that so long as you make the payments for principle, interest, taxes and insurance, the lender would not call the loan.
More important, a 90 year old person may not qualify for a new mortgage loan, and even more important, her age would raise a question about her capacity to buy a home at this stage or whether there is undue influence by you.
Such a transaction is possible, but you must be very careful to meet all legal concerns and qualifications, if she is truly interested in doing this for you.
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