I have a owner financed balloon mortgage, how do I determine the new owner if the owner dies?

I bought the house about 4 years ago, the owner died last year and this year the balloon payment is due, about 7 months ago I transfered the house into my dads name. The owners daughter contacted me and says she is the lands administrator now and that the princable of the loan is due to her, and that there has been no record of any transfer between me and my dad, but it was recorded in the county and signed by a notary. How do i find out if she is the owner now? Also, does my dad owe her the annual interest payment as well as the princable in the final balloon payment? Thanks!

2 Answers

Sounds like an interesting situation, and you may need to consult a local real estate attorney for specific legal advice. First thought is that the home's ownership SHOULD be transferred to your deceased seller's heirs at some point, but even if it hasn't already, his estate owns it, and if his daughter is the executor, you should probably be paying her the mortgage payment. You didn't say why you transferred title to your dad, but that is really secondary to the loan as you signed for it, not your dad. If the payment is not made, regardless of who is on title, you risk being foreclosed on and losing the home. I'd strongly recommend taking all your documents and any emails or other oommunication from the seller's estate/daughter to a local attorney for a consultation. You stand to lose far more than the small cost of a short meeting if this situation is not handled correctly. Hope that helps, thanks, Ted

There should be some record of the owner's death and the transfer of the property into his estate along with a statement of the executor that was recorded on the property. I would recommend starting there.

Then contact the executor and find out where the payment should be sent. At this point, you should either have a real estate attorney or a title company prepare the closing papers that will officially transfer the title into you or your father's name. They will make sure that all the property documentation is filed.