“I’m just pretty lost. We weren’t prepared for this at all and I really don’t know what to ask!” How can I assume my father’s mortgage after his death without any credit history or financial stability?

Hi Money Minder,

Hey there, I’m 20 years old and my whole world got flipped upside down when my dad passed away 2 weeks ago. He left behind a house with an escrow mortgage that I’m looking to take on as my own. It’s actually super affordable for me right now, at $700 a month with a remaining balance of $76,000.

Good news is, I’ve got 2 siblings who are totally on board with signing everything over to me and making me the executor. But here’s the thing – I’m pretty sure I’ll need a solid co-signer to help me convince the lender to let me assume the mortgage. Plus, my credit history is pretty much non-existent, I haven’t graduated, and I make around $35,000 a year as a busser at a restaurant.

Can I keep using my debit card to cover his mortgage for a few months? He’s already 3 months behind. I’m feeling pretty overwhelmed and clueless. We were completely unprepared for this and I have no idea where to start or what to even ask. Any tips, insights, or advice you can offer would mean the world to me. Feel free to ask me anything if you need more details. Thanks a million!

Take care,

Response from THE MONEY MINDER:

Hello There,

I am sorry to hear about the loss of your father. In this challenging time, it’s understandable to feel lost and overwhelmed with the responsibilities that come with assuming the mortgage on his house.

Given your current financial situation, it’s crucial to take a practical approach. First, it would be beneficial to contact the lender handling the escrow mortgage on the house. Explain the situation, and inquire about the requirements for assuming the mortgage. They will provide you with guidance on what steps you need to take, which might include having a reliable co-signer due to your limited credit history.

Regarding the delinquent payments, it’s not advisable to use your debit card to pay for them without discussing it with the lender. They might have specific protocols for handling such situations, and it’s essential to follow their instructions to avoid any complications in the future.

Additionally, since your siblings are willing to make you the executor and sign everything over to you, it’s crucial to have open communication with them throughout this process. Work together to fulfill any necessary legal requirements and ensure that everyone is on the same page regarding the transfer of ownership.

In the meantime, it could be beneficial to explore options for improving your credit history and financial stability. Building credit through responsible use of credit cards or seeking financial education resources could be steps towards strengthening your financial position.

Remember, it’s okay to ask questions and seek advice during this time. Utilize the support of family, friends, and financial professionals to navigate through this challenging situation. Take one step at a time, and you will make progress towards assuming the mortgage on your father’s house.

Best of luck as you move forward, and feel free to reach out if you need further assistance or have any more questions. Take care.

Farewell from THE MONEY MINDER.