Posted on: 03rd May, 2011 10:46 am
Can someone be on a deed (life estate) and not have to be on the mortgage?
Yes, any adult can be on title to any property and not be on the loan or morgage. You cannot be on the loan, and not on title.
After talking to the mortgage department I realize I used the wrong terminology. I'm told someone can be on the deed/title but if so they must be on the mortgage but don't have to be on the note. So they aren't responsible for payment but show up on the mortgage. Apparently the bank doesn't like the life estate part of this although the underwriter is fine with it. (this is a re-finance with the same bank that holds the original mortgage that already includes the life estate - go figure!)
The thing with life estates is that they are determined in a number of years, a persons life. So if they write a loan assuming one person holds title, then later another party claims the property, then the lender can "accelerate or call the loan due" If you are having trouble, have a title company place the title in fee estate, then after the loan funds, set up your estate.
It is true that if your name is not mentioned on the mortgage note, then you won't be liable for paying the mortgage dues to the lender.
It would depend on your state and your laws regarding marriage. Contact an attorney in your state
You say that your name is not listed in the mortgage note. Then you are not responsible for the payment. Just for confirming, get assistance from the attorney of your state.