Lender must allow heirs to assume mortgage


Richard: Good morning Tom. I have a question that I've been wondering about with property. I have two properties. Both of them have mortgages on them. How is it handled if something happens to me and my wife? And I want to leave these houses to my son? What happens to that mortgage? Does the estate have to pay the mortgage off or does the mortgage get transfered, let's say to --

Attorney Tom Olsen: Okay, Richard, federal law requires that when you pass away, and your children inherit this property, requires a lender to allow your children to assume those mortgages. 

Richard: That's great.

Attorney Tom Olsen: So they could step right into your shoes and keep on making payments.

Richard: Great. Yes. I appreciate it very much.

Attorney Tom Olsen: All right Richard, Bye.

Richard: That's a great answer, I like it.