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Debt and Quit Deeds

Posted on: 22nd Oct, 2009 01:21 pm
if both my name and my grandmothers name is on our home and she passes away, do i take responsibility for all of her other debt besides what is owed on the mortgage? if so, by making a quit claim deed could this make it so they couldn't come after my home to pay off her debt?
Hi alex_regeski,

If both of you have your names on the property deed, then it means that both of you are the owners of the property. If your name is not on the mortgage docs, then you're are not liable to pay off the mortgage. However, after your grandmother's death, if you want to save the property, then you can refinance the loan in your name and keep on paying the dues. If you stop the payments, then the lender would foreclose the property.
Posted on: 22nd Oct, 2009 07:55 pm
I understand that I would be required to continue to pay the mortgage on the home, I am paying the mortgage now but would I be responsible for paying any other debt that she may have? My concern is whether they would come after my home to pay off any credit cards or medical bills or things of that nature that she may have.
Posted on: 23rd Oct, 2009 08:46 am
Hi alex_regeski,

If the other debts are only in your grandmother's name, then you won't be responsible to pay them off. However, if your grandmother's name is on the property, then they may place a lien on it if the debts are not cleared off. You can ask your grandmother to transfer the property solely in your name with the help of a quitclaim deed with a life estate clause in it. On her death, you would inherit the property. Thus, her creditors will not be able to place lien on the property as you would be the owner of it.

Thanks
Posted on: 23rd Oct, 2009 09:24 pm
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