what happens if the mortgage loan is not in my name but the deed is?

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okay so, i’m just wondering. My in-laws name are on the mortgage loan only and my name and my husbands name is on the deed. I make all the payments every month to the mortgage company. What happens if my in- laws “God Forbid” but pass away. Will i run into problems because my name is not on the loan?

  1. Reply
    May 3, 2011 at 2:28 am

    Why not just call the lender and ask how that would be dealt with? They don’t care that there’s one name on the loan and another on the deed as long as they get paid on time.

  2. Reply
    Prophet 1102
    May 3, 2011 at 3:09 am

    Depends – do they have mortgage (life) insurance – if so you guys would get a house.

    I assume you guys couldn’t qualify for a loan – so the in-laws “bought the house for you” and just added their son’s name to the deed. So the mortgage is in their name.

    If they die, the mortgage company would have a claim against their estate and it already has a lien on the house.

    One scenario would be that you guys would simply assume the existing loan. And given that you can prove you’ve been making the payments, the mortgage company will probably go along with it. Worst case scenario is the mortgage company reposesses the house and you would have to move.

  3. Reply
    May 3, 2011 at 3:45 am

    I think you should get this clarified as soon as possible. Only because in many cases, the bank wants the owner of the deed and the mortgagor to be the same. You may want to see if they can refinance out of the existing mortgage and have your names on the new one.

  4. Reply
    May 3, 2011 at 4:30 am

    Your property secures the loan – period. If the payments aren’t made the lender will foreclose the loan and reclaim the property no matter whose name is on the deed.

  5. Reply
    May 3, 2011 at 5:30 am

    You really ought to have a lawyer look at all these papers. If your in-laws are not also on the deed then their deaths will not change ownership.

    However a mortgage is always tied to the land. That is what a mortgage is. So there is some sort of ownership tied to the mortgage and that might cause an inheritance problem on the event of death.

  6. Reply
    May 3, 2011 at 5:40 am

    Could be a potential problem — if your in laws financed the property in their name and then deeded the property into you and your husbands names. More than likely there is an “all due” clause on the mortgage – meaning the entire balance is due should the mortgagor transfer their interest to someone else, in which this case they have.

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