Legal Question in Real Estate Law in Massachusetts

My father and brother own a house together, my father has now will. My father takes out an equity loan on the house, he and my brother sign off but it's in my father's name. He dies, and the house goes to my brother. Everything else goes to his wife (my stepmother). Where does the debt go?


Asked on 1/12/12, 10:27 am

2 Answers from Attorneys
Alan Pransky Law Office of Alan J. Pransky

The debt is secured by the house and must be paid or the house is lost. The debt is also a debt of the probate estate (if there is one). If there is no probate estate, the debt is no longer owed by anyone. It is secured by the real estate and must be paid.

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Answered on 1/12/12, 10:53 am

If the debt is the Father's, it is a debt which can be claimed against the estate, if there is one. However, the Debt is still secured against the property and must be paid or the property will be foreclosed upon by the lender.

If the loan is solely in the name of the father, the Lender will call the note, so your brother will either have to refinance or pay-off the loan, unless the estate pays the note off.

What is not clear is who gets the Father's share of the home. If the home is owned as joint tenants, it will go to your brother. If it is owned as tenants in common, then the Father's half passes through the estate.

If you or your brother have additional questions, please feel free to contact me.

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Answered on 1/12/12, 11:16 am


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