She is 45 so its not like I need to be worried, but what happens if she dies before fully paying the loan off? Or what happens if she died and has already paid the loan off but doesn't have a will?
If mom dies before paying off the mortgage and her estate can't pay off the mortgage the probate judge will order it be sold to pay off the lender. Any money left over will be distributed evenly amongst the children (when there is no will) or as directed by a will.
The grant program she is taking advantage offers a very small amount towards the down payment so its not a big deal.
Ok.. if mom dies before the mortgage is paid off, then the beneficiary can inherit the house with mortgage payments OR the house can be sold and the mortgage paid off.
If she dies without a will (which would be extremely unwise of her), then any assets she has would go to relatives in a certain order.. so spouse first, if no spouse, divided amongst children, if no children, it goes to parents and so on. Mom doesnt get to chose who gets what.
if she dies before theckoan is paid and you can't come up with the money the bank gets it.
If she dies and it's paid off it's more than likely you and your siblings get the house . Otherscould contest if she owes money for other loans owning.
If she is in the U.S. she is dreaming. Each state has rules for inheritance without a will. Why not get a will. If you inherit a property with a mortgage you have to pay it off, which can be done by refinancing.