Legal Question in Real Estate Law in Texas

My sister and I jointly inherited our mother's residence recently (12/27/11) when she died. Ultimately my sister is going to buy my half from me. So, the question is, what must be done and what precisely is the sequence of our next steps.

Initially, is it necessary to change the name on the deed from my mother's name to my sister's and my name to reflect new/joint ownership? All we have is the will which specifies this inheritance. Is that enough? What step(s) do we take to get this done? Can we do this ourselves, or must we use a real estate attorney?

Secondly, we already have an informal agreement for the sale of my half to my sister. This includes the price, repairs that we will split including splitting the second mortgage that handled a foundation repair. We want to accomplish the sale with quality at least cost. Will we need to use a realtor or a real estate attorney? Either way, I assume a title company will need to be involved, at minimum. True?

Off all the above, what am I missing, if anything?

Lastly, the residence is collateral for the second mortgage. Can we present the death certificate to the lender and ask the loan to be erased because my mother had no money at her death? Or if we stopped paying the second mortgage, could the lender foreclose and then own/sell the property to recover the debt?


Asked on 2/05/12, 2:11 pm

1 Answer from Attorneys

First, you have to clear title to the property. You will likely need to probate your mother's will. I can't tell you with specificity which procedure you'll need, because I don't know the estate's assets/liabilities, etc. Having the will, by itself is not enough. You'll need a court order. I would not recommend doing this yourself.

Second, if you want to do this correctly, you would have your probate attorney draft a family settlement agreement regarding the repairs to the house, selection of a realtor, and the splits after the sale. Everyone thinks that it will be a simple transaction. It rarely is. Repairs will be higher than expected and the sales price will be lower than expected. The heirs will then disagree about whether to take a lowball offer. It gets worse from there. I cannot see a situation in which a title company would not be involved.

Finally, the mortgage is secured by the house. If the borrower dies, the mortgage is still "attached" to the house. The only exception is if the borrower had mortgage protection insurance that would pay the loan in the event of the death. If you stop paying the mortgage, the mortgage company has the right to foreclose the house.

Many probate attorneys will speak with you about your case for free or for a small fee. I suggest you speak with a few and figure out who you like best. Do not do this on your own.

Dave

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Answered on 2/05/12, 2:28 pm


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