When a person dies and his child wants to assume the loan for real property in Arizona, does the child have to be appointed as a P

In almost all cases, mortgages today are not assumable. Regardless of being appointed a personal representative or other designation, you will most likely need to refinance.It is also well known that the current note holder may never find out that person died. You can transfer title of the property and continue to pay on the existing note. But be prepared that maybe some day you will receive a letter stating the note is due because the borrower is no longer living. Please also note that mortgage interest statements would also continue to be issued in the name of the deceased.

It amazes me when I see such bad information.. When a property is inherited from a relative, then according to the Garn-St. Germain Depository Institutions Act of 1982, there is an exception to the due-on-sale clause when a property transfers by inheritance. The law allows any relative who inherits property to assume payments on the mortgage and retain ownership of the property. The lender is not allowed to call the note due, and they must allow you to be added to the loan, and all future correspondence will be in YOUR name,, including the 1098-INT which will allow you to write off the interest.. The transfer can be done by providing the county with a copy of death certificate along with the will or trust. Once that's done, you can contact the lender and provide the same to them.. they will add the heir to the loan within 30 days.. I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

I have had this question come up before and aware they could assume the loan while retaining title to the property.

I wanted to complete my comment with an acknowledgement of William Acres who gave such a thorough and excellent answer to your question. I for one could not point specifically to the Garn-St. Germain Depository Institutions.Act of 1982. I had just learned that from past management and thus my previous clients who inherited could continue to pay on the loan and be added to the loan. Obviously, if it is to your benefit to refinance you can do so. Generally, you receive about 10 original death certificates and the county will want one of those. Not all loan originators have experience in all situations so you always want to check with more than one source for an answer.