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This was my mother's home in Florida. She died and left it to me via ladybird deed. It has about $40,000 equity. I have been paying the mortgage out of my bank account for years - since long before she died. But because I am not mentioned on the mortgage, the lender won't even talk to me. I have been renting the place for years, so everything is cool for the moment. But I really should get this squared away. If I could somehow get access to that equity and take a loan against it, that would be excellent. I want to keep renting the place for now.

What I would really like to do is to take out a loan (I owe something like $30,000). I would pay off the mortgage with it and then pay the loan off in place of the mortgage. The interest rate on the mortgage is like 6.5 or something. Is this a reasonable plan? Could I really get a loan that pays off nearly the same as a mortgage?

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    It is very unlikely you will be able to get a rate close to your mortgage rate, with an unsecured loan (that is: a loan not tied to a specific asset, like your home, which the bank can sell if you fail to make payments). It is possible however to refinance with a new bank, which will pay your old bank for the remaining mortgage amount.
    – Grade 'Eh' Bacon
    Nov 10, 2017 at 20:53
  • "I owe something like $30,000" is that the balance of the mortgage or do you have that much debt in addition to the mortgage?
    – D Stanley
    Nov 10, 2017 at 21:03
  • I think the remaining mortgage amount is $30,000. There is no other debt.
    – Daniel
    Nov 10, 2017 at 21:06
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    If you stop paying the mortgage payments I'm pretty sure the lender will come and talk to you quickly. Seriously, is the lender aware that you own the home, and that your mother has died?
    – DJClayworth
    Nov 10, 2017 at 21:31
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    "I suppose if it is not my mortgage they have little power over me." They have little power over you, but they have power over the property. If you stop making payments, they can foreclose.
    – Acccumulation
    Nov 13, 2017 at 19:33

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I would just seek out a new mortgage in your name. Whether you can get one at the same rate depends on your credit history, but with a LTV of less than 50% (30K/70K) there should be no problem getting a mortgage. You might have to explain the fact that you've been making the payments since that won't be on your credit history.

the lender won't even talk to me

That seem odd, since you're the one giving them the payment. Do you mean literally won't talk to you or won't discuss refinance options? If you do get a separate mortgage all you'll need from the bank is the payoff amount and to hand them a check when you close.

Or it may that they're happy with the 6.5% rate they're getting and aren't in a hurry to help you pay less interest.

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  • He meant renting it "out". To a tenant.
    – JTP - Apologise to Monica ♦
    Nov 10, 2017 at 21:33
  • @JoeTaxpayer Ahh that makes more sense.
    – D Stanley
    Nov 10, 2017 at 21:56
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    I have used the phrase "English fails me" with my wife more and more. It's a good day when I can actually communicate and help with understanding. (I'll re-visit later, or in morning, and clean up the comments, I see you edited already)
    – JTP - Apologise to Monica ♦
    Nov 10, 2017 at 22:00

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