Legal Question in Wills and Trusts in Massachusetts

Re: inherited real estate with existing mortgage

This is really a question of Maine Law and the Mortgage terms. Most mortgages have a clause binding heirs and assigns. The property will become yours regardless, but the Lender may require payment or your acceptance of both the note and the mortgage on the property. If you have good credit this should not be a problem.

If the estate has other assets it may elect to pay off the mortgage depending upon how your father's will is written and the assets he has available.

Re: inherited real estate with existing mortgage

My condolences on your Father's death. The answer depends on the terms of the mortgage and many other factors about which you would be well advised to retain an attorney. Best of Luck!

Re: inherited real estate with existing mortgage

This depends more on Maine law than MA law, and really depends on the mortgage holder and maybe your credit score. All mortgages have a clause that says the mortgage will be an obligation of the mortgagor's "heirs and assigns," which is you. You should make sure they have no reason to worry: make any estate tax return that is indicated, even if no estate tax is due; make sure the real estate taxes are paid on time; make sure the mortgage is paid on time; make sure any water or sewer bill or any other payment that is or will be a lien on the property is paid on time.

You should become administrator of his estate, or executor if he left a will naming you as such, mainly to give creditors an opportunity to notify you of any claims.

You should check with a Maine lawyer to see if and what needs to be done there.

If the interest rate is high, you may want to take the opportunity to refinance it in your name, if you can, after the above has been done.