Posted on: 12th Dec, 2006 06:02 am
My Father In Law did a deed transfer from himself to his daughter. He has a mortgage that he signed but it is only in his name with the property as security. If he dies, does she have any requirement to pay back the mortgage or does it just go away? He has no other assets to claim. They are in New Jersey. Thank you.
Hi Jacklyn,
If the property was transferred in the name of the daughter and has a mortgage then the lender should be informed about it. Let me tell you why it should be informed to the lender.
The mortgage was given in the name of father-in-law and he is in lender's records as the owner of the house. Now if the lender checks and finds that his name is not on the title of the property then he can call the loan due and demand full payment.
You should advice your father-in-law to get in touch with the lender and explain the situation and have the mortgage refinanced in his daughter's name.
If the property was transferred in the name of the daughter and has a mortgage then the lender should be informed about it. Let me tell you why it should be informed to the lender.
The mortgage was given in the name of father-in-law and he is in lender's records as the owner of the house. Now if the lender checks and finds that his name is not on the title of the property then he can call the loan due and demand full payment.
You should advice your father-in-law to get in touch with the lender and explain the situation and have the mortgage refinanced in his daughter's name.
I appreciate your reply, but what if the lender does not know and my father in law passes, will my sister in law still have to pay the mortgage?
Normally, if a person dies before his mortgage is fully paid off then the balance of the mortgage is paid off from the mortgage insurance.
But in the situation you have described in your question, it will not be so as before the death the mortgage agreement has been violated.
But in the situation you have described in your question, it will not be so as before the death the mortgage agreement has been violated.
Hi Jacklyn,
The loan does not go away; the lender will be asking for payments even after your father-in-law passes away. He has to retrieve the money which he has offered along with the interest; otherwise, he'll suffer a loss.
Even if your father-in-law's name is on the loan, after he dies, it has to be repaid by his daughter as her name is on the deed. So, in order to save the home from being taken away by the lender, she has to pay.
Thanks,
Caron.
The loan does not go away; the lender will be asking for payments even after your father-in-law passes away. He has to retrieve the money which he has offered along with the interest; otherwise, he'll suffer a loss.
Even if your father-in-law's name is on the loan, after he dies, it has to be repaid by his daughter as her name is on the deed. So, in order to save the home from being taken away by the lender, she has to pay.
Thanks,
Caron.
Hi Jacklyn,
"what if the lender does not know and my father in law passes, will my sister in law still have to pay the mortgage?"
The lender may come to know of it as he will be collecting the payments on a monthly basis. So, if the loan remains unpaid after your father-in-law's death, the lender will demand it from the daughter. That's because she is the current owner of the property which is kept as security.
Thanks,
Sara
"what if the lender does not know and my father in law passes, will my sister in law still have to pay the mortgage?"
The lender may come to know of it as he will be collecting the payments on a monthly basis. So, if the loan remains unpaid after your father-in-law's death, the lender will demand it from the daughter. That's because she is the current owner of the property which is kept as security.
Thanks,
Sara
iF I AM ON THE MORTAGE PAYMENT BOOKS AND MY FATHER DIES, DO I INHERIT THE HOUSE?
"If" your on the loan and title you may receive half the house but, to inherit the rest of the house or your father's part you would need to be in his will.