My sister passed away. Can we pay off her USDA loan and keep her house? 8 Answers as of June 09, 2011

My sister was paying on a house when she passed away. We want to keep the house in our family but she had a USDA loan. Are we able to pay it off and keep it in the family?

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Theodore W. Robinson, P.C.
Theodore W. Robinson, P.C. | Theodore W. Robinson
I think you need to consult with an estate lawyer to see what other details apply. Under normal circumstances, you should either be able to pay off the loan or refinance and keep the house, but it will depend upon a lot of minor issues that may need to be resolved. Speak to a qualified attorney. Good luck.
Answer Applies to: New York
Replied: 6/9/2011
Law Offices of Timothy G. Kearney, LLC
Law Offices of Timothy G. Kearney, LLC | Timothy G. Kearney
The first question to be answered is whether she provided for the distribution of the property upon her death. If not and you wish to purchase it from her estate you can look into either assuming the loan or obtaining new financing to pay it off and purchase.
Answer Applies to: Connecticut
Replied: 6/9/2011
Apple Law Firm PLLC
Apple Law Firm PLLC | David Goldman
The simple answer is yes, but you cannot do this without opening a probate to deal with the USDA and clear up the title issues.
Answer Applies to: Florida
Replied: 6/9/2011
The Schreiber Law Firm
The Schreiber Law Firm | Jeffrey D. Schreiber
What happens to the property of a deceased person depends either on their will or trust and if they did not have one, by the intestacy laws of the state. Whoever is entitled to the property can pay off the loan and keep the property.
Answer Applies to: California
Replied: 6/8/2011
The Law Office of David L. Leon
The Law Office of David L. Leon | David L. Leon
Possibly. You have to clear title to the house first. Did your sister have a will? Or any other beneficiaries? Also, did she have credit life?
Answer Applies to: Texas
Replied: 6/8/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    That depends on if she had a will, in which case it passes under the will, or if she did not, who her legal heirs are. You didn't tell us that, so there's no way to answer your question.
    Answer Applies to: Georgia
    Replied: 6/8/2011
    Law Offices of Brian Chew
    Law Offices of Brian Chew | Brian Chew
    While I do not know what a USDA loan is, you typically have the option to either payoff or assume the mortgage of the property owned by someone who passes on.
    Answer Applies to: California
    Replied: 6/8/2011
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