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House refinanced 3x (reddthat.com)

submitted 1 month ago by Spacehooks@reddthat.com to c/personalfinance@lemmy.ml

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My grandmother bought the home we lived in the 90s for 90k at a 8% interest rate. I found out she refinanced the house several times from what seems like predatory practices and malicious advice and now owes 250k at 6%. Basically the house I thought was paid off now has 30 mortgage and she is 90. Her grandkids are in the will to inherent the house but do we inherent this mortgage?

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[–] RunningInRVA@lemmy.world 3 points 1 month ago* (last edited 1 month ago) (1 children)

I would not let the house go to auction. That will be the least advantageous. Having her sell now means that she has to have the balance of the mortgage available at closing to pay down the loan. That would of course reduce the value of her estate and then it’s less going to the grandkids or whoever. Whether she or her estate sells when she is alive or afterward is likely moot. She still owes the bank the balance of the mortgage no matter what.

[–] Spacehooks@reddthat.com 1 points 1 month ago

Ok going to auction is the worst possible option. I'll make sure to make that clear to everyone. Appreciate the help.