(Warning: Typos Intact, Not Legal Advice)

My father pass away 2023 left behind a house I’m on the deed but the house has a hud loan of 75k could I settle?

My father pass away 2023 left behind a house I’m on the deed but the house has a hud loan of 75k is it possible I could come with a settlement or a forgiveness?

Answer: The good news is that, thanks to federal legislation, when someone dies, the person who takes over the house does not need to refinance or qualify as creditworthy to continue the mortgage—as long as they keep making the payments.

On the other hand, when it comes to federally guaranteed loans, such as HUD or FHA loans, lenders typically have no incentive to negotiate any sort of settlement. This is because, in the end, the federal government will cover 100% of the amount owed. For this reason, I don’t think the lender would be particularly interested in settling or forgiving any portion of the loan since they have no financial motivation to do so.

But at least you can keep the house as long as you continue making the payments.