Legal Question in Wills and Trusts in Ohio

My father-in-law is 82 years old. He is just finishing treatment for lung cancer and we are trying to get his estate in order. He owns a home and has two loans on the house. The house is currently worth less than the two outstanding loans, he is underwater. I contacted the mortgage company and found out that both loans are personal and not mortgages (according to them and that is the terminology they used). He is current with both loans and has never missed a payment. What happens to his estate if he dies. My mother-in-law died two years ago and he has two daughters, one being my wife. What happens to these personal loans when he dies? We were looking into refinancing using one of the current federal programs to lower the payments but the mortgage company, Chase Bank, said he doesn't qualify because the loans aren't mortgages. We are in Ohio.


Asked on 11/08/11, 1:28 pm

1 Answer from Attorneys
Lisa Meier Law Office of Anthony W. Greco

If a loan is secured by a house, it is a mortgage. If your father's debts are more than what his estate is worth, his estate may need to declare insolvency. If your father (and then his heirs) remain current on the loans, the lender will probably not bother you when the house is transferred. It is difficult to tell, because it depends on the individual lender. Chase Bank is not always willing to work with homeowners. I have rarely seen the current federal progams help homeowners refiance. Most homeowners do not qualify for refiancing.

Lisa K. Meier

Gurtner & Meier, LLC

[email protected]

This response is based on Ohio law and the limited facts you have provided and is not intended to create an attorney-client relationship. I cannot provide adequate advice to you without meeting with you in person. If you would like to schedule a free consultation, please feel free to contact me.

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Answered on 11/09/11, 7:00 am


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