Posted on: 25th Apr, 2010 05:57 pm
First Im glad I found this forum, Im hoping the members here can help me out.
My wife and I were recently put on the title of my FIL's house, he has a second home he lives in. Were now joint tenants on this property. The mortage is still in my FIL's name only. We have a property that is currently on the market for sale, but no takers yet. SO we allready have a mortage on that home.
My questions are:
1. If my FIL pass's away what is our responsibilty on the mortage?
2. Would it be smart to refi with all 3 of us on the mortage?
3. Should we continue to make the mortage payments on FIL's house and let our other one drop into foreclosure?
Thank you and if you need any further info feel free to ask.
My wife and I were recently put on the title of my FIL's house, he has a second home he lives in. Were now joint tenants on this property. The mortage is still in my FIL's name only. We have a property that is currently on the market for sale, but no takers yet. SO we allready have a mortage on that home.
My questions are:
1. If my FIL pass's away what is our responsibilty on the mortage?
2. Would it be smart to refi with all 3 of us on the mortage?
3. Should we continue to make the mortage payments on FIL's house and let our other one drop into foreclosure?
Thank you and if you need any further info feel free to ask.
hi admin,
if you and your wife's name are mention on the mortgage deed of your father-in-law's property, then you would be responsible for the mortgage dues after he passes away.
you can refinance the mortgage with all the 3 names on the loan documents. it'll make all 3 of you responsible for the loan payments.
if you let your other property go into foreclosure, it will have a negative effect on your credit report and you would be liable for the deficient balance. if you cannot pay it off, then the lender will be able to place a lien on the property that you own along with your father-in-law. it would be better if you could contact the lender and apply for a deed in lieu of foreclosure. though credit effects would be same, you won't be responsible for the balance amount.
if you and your wife's name are mention on the mortgage deed of your father-in-law's property, then you would be responsible for the mortgage dues after he passes away.
you can refinance the mortgage with all the 3 names on the loan documents. it'll make all 3 of you responsible for the loan payments.
if you let your other property go into foreclosure, it will have a negative effect on your credit report and you would be liable for the deficient balance. if you cannot pay it off, then the lender will be able to place a lien on the property that you own along with your father-in-law. it would be better if you could contact the lender and apply for a deed in lieu of foreclosure. though credit effects would be same, you won't be responsible for the balance amount.
Thank you for the quick reply, FIL's name is the only one on the mortage. Myself and my wife are not. We are all on the title to the house.
If your name is only mentioned on the property deed, then you won't be responsible for the mortgage payments if your father-in-law defaults on it.