Legal Question in Real Estate Law in Maryland

First,thank you for your time. I have a question regarding a home that I live in. In 2004 my grandparents and I bought a house in Easton, MD that I live in. I am on the deed with them but they are the only ones on the mortgage loan. My grandparents both died in may of 2009 and I have been making payments in there names, we still owe about $120,000. My question is what should I do? Should I tell the bank(BB&T) that they died, I don't think I have good enough credit or job for them to give me a mortgage loan and I'm afraid they will foreclose the house if I tell them of there death. I've heard of a mortgage life insurance that pays off the balance of the mortgage upon death, how do i find out if they had that? I know we have mortgage insurance but I'm not sure if that's the same thing as mortgage life insurance. I have a big family and I am scared I'll lose this house and we'll have nowhere to live. Any advice you could give me would be a blessing and I would be soooo greatful. So thank you again for your time!


Asked on 2/24/10, 9:43 am

1 Answer from Attorneys
Robert Sher Wagshal and Sher

Relax--as long as you keep paying the mortgage the bank isn't going to do anything. You are now the sole owner by virtue of your grandparents' death. As for mortgage life insurance, if someone is opening an estate for your grandparents they might be able to go through their papers and find out if they had this, although it's unusual. The lender probably wouldn't have that information unless it was purchased through the bank. This isn't the same as mortgage insurance, which would have been required by the bank if the down payment was less than 20% of the price of the house. That is to protect the bank in case of a default on the loan.

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Answered on 3/01/10, 1:51 pm


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