My husband passed away but only his name is on rental mortgages

[Tiffany Bishop]

This is probably a unique situation, but I'm hoping someone has experience or knowledge.  My late husband and I own three rental properties.  He passed away unexpectedly about a year and a half ago.  The titles of the three properties are all in the name of our trust, but the mortgages were solely in his name.  I haven't done anything about that for the past year+ for multiple reasons, I've just continued to pay them.  However, I'm thinking it's time to do something about them.  I called the lender and no one that I could get a hold of knew anything or would tell me anything about what my options are.  I was just told to send a lot of different documents via snail mail to their corporate offices.  Does anyone know if I have to refinance them under my name? Will I need to pay them off?  Can I just transfer them to my name?  I really have no idea what this will look like.  

[Shaun Weekes]

Originally posted by @Tiffany Bishop:

This is probably a unique situation, but I'm hoping someone has experience or knowledge.  My late husband and I own three rental properties.  He passed away unexpectedly about a year and a half ago.  The titles of the three properties are all in the name of our trust, but the mortgages were solely in his name.  I haven't done anything about that for the past year+ for multiple reasons, I've just continued to pay them.  However, I'm thinking it's time to do something about them.  I called the lender and no one that I could get a hold of knew anything or would tell me anything about what my options are.  I was just told to send a lot of different documents via snail mail to their corporate offices.  Does anyone know if I have to refinance them under my name? Will I need to pay them off?  Can I just transfer them to my name?  I really have no idea what this will look like.  

I'm very sorry for your loss.

Since you're on title that's the most important thing as that means that you or the trust that you control own the home. If you want to refinance the home into your name you would have needed his signature to give escrow permission to order the payoff. In lieu of that you will have to furnish the death certificate to get the payoff from the current lender via escrow. The payoff will be ordered by escrow so just have that document handy.

Take care and I hope this helps.

[Wayne Brooks]

@Tiffany Bishop Title has not changed, so no due on sale issues.  As for the loans, I think you can/should just keep paying them...no need to refinance or payoff.  I would give them whatever documents they need so You can have authorization for access/information
on the loans...or maybe not even necessary. 

[Ned Carey]

@Tiffany Bishop this is basically a non issue. You are in the same position you were before, you need to keep paying the mortgage or the bank could foreclose. However that is basically all you need to do (With the exception of Wayne's advice to make sure you have the ability to talk to the bank about the mortgage).

The bank is in a worse position. They no longer have someone to personally guarantee the loan. But they can still foreclose as the property is collateral for the loan. So if payments aren't made they can still take the property.

There is no need to transfer the property unless there is something in the trust documents requiring it on death. There is no need to refinance unless there is some benefit to you like lower rates.