Legal Question in Real Estate Law in Maryland
real estate and wills
If I do not wish to inherit a house that has a mortgage that I couldn't pay, and the house is valued lower than the mortgage--what is necessary to protect myself? I am on the house as joint tenant with right of survivorship, which means it will not pass through the will in Maryland. If I pay the fees to remove myself from the deed as joint tenant with Rt of Survivorship, and am still named as executor of the will and the sole beneficiary of the will, would that unwanted house still revert to me with the high mortgage and the difficult sale which might get me in financial trouble?
1 Answer from Attorneys
Re: real estate and wills
The only way to avoid acquiring full title to the property is to deed your interest to someone else. If you deed your interest to a third person who then becomes a joint tenant with the other current jt, they would acquire the property if they outlive the current jt, so his/her will would be irrelevent. If you simply deed your interest back to your co-tenant, and remain the sole beneficiary of his/her will, you'll still end up with the property.
You didn't indicate whether you are also a signatory to the mortgage and the underlying promissory note. If so, regardless of what you do with ownership, this debt will remain your responsibility, and could affect your credit.
If you do end up with the property and there is no equity, you could offer the lender a deed in lieu of foreclosure. If they agree, they get the property back and cancel the debt so you are not further exposed.
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