Legal Question in Wills and Trusts in Illinois

Re: Would Like To Secure Loan For Mom's Home That Has A Reverse Mortgage On It

If there is no will, under Illinois law, the children inherit in equal shares, subject to the prior claim of the mortgage holder, and any grandchildren from children that predeceased the parents split their predeceased parent's share. If the mortgage can be paid off or refinanced, the heirs can keep the property.

You can mortgage the inherited property without going through probate, but all heirs must be able and willing to sign the new mortgage. Similarly, some heirs can deed their property, i.e, be bought out, by the other heirs who want to keep the property, and mortgage it.

The mortgage in all likelihood has a "due on sale" or due on death clause, and must be repaid within a short time after the death. So, your choices are to either refinance or sell, and to do either fairly quickly, to avoid foreclosure proceedings by the current mortgage holder. And, if your brother alone doesn�t have good enough credit, someone else may have to cosign the mortgage.

Because of the complexity and the amounts involved, I recommend that you and/or your affected family members get an attorney to help resolve these issues.

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