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My Husbands daughter wants him to sign a quit claim deed for his home he shared with his deceaded wife. My question is, If my husband should die, who would be responsible for the mortgage payments of the home. My name is not on the mortgage and neither is his daughter.
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Originally Posted by ClarisaS
The people whose names are on the mortgage are responsible for the mortgage - blood relatives (and anyone else) are not "automatically" responsible for the payments.
This discussion goes on and on on the board with many different opinions and experiences - I continue to be amazed that mortgagors (the mortgage company or bank) allow Deeds of any sort to be filed if the "new" names on the Deed are NOT the people who took out the mortgage - but I am aware it does happen.
Your husband's estate would be responsible for paying back the loan. If the estate does not pay it back then the lender would have the right to foreclose, auction off the house and use the proceeds to pay off the loan. Any balance that might be due would be the responsibility of the estate. Neither you nor your husband's daughter would be personally responsible for paying back the loan.
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Originally Posted by LisaB4657
Lisa, would you say that they could quit claim if there is a mortgage without first getting permission from the mortgage company - ?
Sure, they can quit claim. They don't have to get anyone's permission. But if they do any kind of transfer without the lender's permission then they run the risk of the lender finding out and then activating the "due on sale" clause.
A transfer of the property does not extinguish the lender's first lien. Whoever ends up with the property takes it subject to that lien. If the loan isn't paid then the lender can foreclose regardless of who the current owner is.
I just want to clarify what Judy and Lisa have been saying. Most mortgaes have a due on sale clause. This means if the property changes ownership then the lender can require that the full balance be paid immediately or they can foreclose.
So, if your husband wants to give his daughter a share in the property, he would be better off getting the lender's permission. In this iunstance it shouldn't be a problem.
Welcome to AMHD. Just curious: who resides in the home now? Does your husband have a will? Have you two discussed the value of estate planning?Quote:
Originally Posted by ClarisaS
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Originally Posted by George_1950
The daughter lives there now, but we will be moving into in next summer. It isn't so much the value of the home that matters to me. It is the fact that if my husband passes away I don't want to be thrown out on my behind. My husband is 30 years my senior so I can understand why his daughter is trying to do this. But of course her and I have never met so when we do it may not be an issue. Ive asked my husband not to quit claim it but to put it in his will. SO I believe problem is solved.
I think the problem has been solved. I've asked my husband to put the property in his will and not to quit claim it to his daughter. He didn't realize that he would be responsible for the mortgage and taxes on the house still even if his daughter held the deed to it. Thank you all for your comments
I feel as though we may be tap dancing around the question you raised about being thrown out on your behind. A will and a deed are very similar, as the deed takes effect upon delivery of the deed, and the will takes effect at death. The question for you is what does the will or the deed say? If you don't want to be thrown on your behind, your husband needs to leave you a life estate in the home. Life Estate legal definition of Life Estate. Life Estate synonyms by the Free Online Law Dictionary.
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