Posted on: 17th Dec, 2012 10:15 pm
My husband and I are planning to buy a home together next summer. He already owns a home already that he's renting out. He's right about even on the value vs what he owes (due to the currently lower real estate values) and the tenants are paying rent, which washes the mortgage. He plans to keep this first property separate, which is fine with me. He says that if something happens to him, I am to "just let the property go" - meaning just walk away from it. He claims that since my name isn't on the deed, I am not in any way responsible for it. That feels weird to me. Won't his life insurance policies go into probate (I am his only beneficiary) and they require the mortgage for his separate to be paid off out of that? And could his tenants sue me? Would it affect the home we buy together?
Hi Joaqim!
Welcome to forums!
You should note that if your name is mentioned on the mortgage loan, then you will be liable for the loan payments even after your husband's death. Moreover, the lender will either foreclose the property or will ask the estate to pay off the loan in full. I did not understand why you ask that the tenants may sue you.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You should note that if your name is mentioned on the mortgage loan, then you will be liable for the loan payments even after your husband's death. Moreover, the lender will either foreclose the property or will ask the estate to pay off the loan in full. I did not understand why you ask that the tenants may sue you.
Feel free to ask if you've further queries.
Sussane
Hi Joaqim,
The lender may come after the joint property and place a lien on it if they get a judgment. This will help them in recovering their dues.
Thanks
The lender may come after the joint property and place a lien on it if they get a judgment. This will help them in recovering their dues.
Thanks
Your husbands separate property will pass by will on his death. If no will, then by state law, which generally gives to the spouse. The mortgage will still be on the house, and may become due in full under an "acceleration clause".
Life insurance and other contracts with named beneficiaries do not go into probate.
The tenants should not sue, though their lease is no longer valid, because you can assume the lease as the new landlord without any problem when you become the new owner.
Life insurance and other contracts with named beneficiaries do not go into probate.
The tenants should not sue, though their lease is no longer valid, because you can assume the lease as the new landlord without any problem when you become the new owner.
