Legal Question in Wills and Trusts in Florida
Equity in property
I am a single man with no children. I own property and have considerable equity, but still have a balance on the mortgage. My question is.. If I prepare a Will. Can I say in the will that i want a family member to take control of the remaining mortgage payments until he/she can sell the house at market value and then pay the mortgage lender the balance owed. This way my family can keep the balance after the property is sold...
My concern is... that the lender will take control of the house, sell it at market value, keep the remainding equity or sell it below market, adding rediculous fees for selling the property. In the end haveing very little equity if any for family members.
I guess the real question is... since the lender really owns the property do they automatically take over the property. Or can a Will stop them until a family member that i have selected in my Will comes in and sells.
1 Answer from Attorneys
Re: Equity in property
The lender does NOT own the property. You own it subject to their lien (the mortgage). In other words, if the mortgage payments are not made, they have the right to call the loan due in full and foreclose. In that case, if the balance is not paid off, the property is sold by the county clerk to the highest bidder, who is usually the lender. That is the only way the lender can take control of the property(ies). After your death, as long as the payments are made, nothing happens. The estate can sell the property(ies) and distribute the net proceeds as you have designated in your will. God bless.
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