Posted on: 28th Mar, 2011 04:58 am
i recently married. i have a home that is paid off - only my name is on the title with a will in place leaving it to my children (my husband and i have a pre-nup.) we own a vacation home with rights of survivorship. each of us has a life insurance policy with more than enough to pay off the existing mortgage should something happen. we are listed as single beneficiaries on these policies.
ok, now it gets tricky. my husband is still on the ex's house title/mortgage. per the divorce settlement, she had two years to sell the house. it has not sold and it is now going on 4 years. my husband pays the mortgage out of the child support amount he is, by law, to pay. the child support amount is $1000 and the mortgage is $800. so, he pays the mortgage and the ex gets a check for $200. she is (voluntarily) unemployed so cannot refinance the house. her boyfriend has moved into the house and we assume he assists with other bills.
my concern and questions are threefold:
1) what happens if my husband dies? if my husband dies, i would not want the life insurance i am listed as beneficiary be taken to pay this debt that his name is on. nor would i want to be held responsible for the debt in his name.
2) if the ex dies, i don't want to be responsible for a third house (that may or may not sell.) we could not afford this.
3) what happens in three years when my step-daughter turns 18? now, the $1000 child support stops and my husband is still on the mortgage but now the ex has no income (she has no desire to work.)
my husband is being a nice guy. he does not want to force the ex to sell the house in that would probably cause his daughter to have to change schools. while i commend him for being such a nice guy, i don't want to be taken advantage of - or be held responsible for a mortgage if something were to happen. any advice would be greatly appreciated.
ok, now it gets tricky. my husband is still on the ex's house title/mortgage. per the divorce settlement, she had two years to sell the house. it has not sold and it is now going on 4 years. my husband pays the mortgage out of the child support amount he is, by law, to pay. the child support amount is $1000 and the mortgage is $800. so, he pays the mortgage and the ex gets a check for $200. she is (voluntarily) unemployed so cannot refinance the house. her boyfriend has moved into the house and we assume he assists with other bills.
my concern and questions are threefold:
1) what happens if my husband dies? if my husband dies, i would not want the life insurance i am listed as beneficiary be taken to pay this debt that his name is on. nor would i want to be held responsible for the debt in his name.
2) if the ex dies, i don't want to be responsible for a third house (that may or may not sell.) we could not afford this.
3) what happens in three years when my step-daughter turns 18? now, the $1000 child support stops and my husband is still on the mortgage but now the ex has no income (she has no desire to work.)
my husband is being a nice guy. he does not want to force the ex to sell the house in that would probably cause his daughter to have to change schools. while i commend him for being such a nice guy, i don't want to be taken advantage of - or be held responsible for a mortgage if something were to happen. any advice would be greatly appreciated.
Hi bholder!
Welcome to forums!
The debt that is listed in your husband's name, then you won't be liable for paying it after your husband's death. Moreover, I don't think the lenders will come after the insurance policy of your husband. They will contact your husband's ex for the payment. If the ex dies, your husband can sell off the property and pay off the debts to get rid of it. Your husband should force his ex to sell off the property asap as it is mentioned in the divorce decree.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
The debt that is listed in your husband's name, then you won't be liable for paying it after your husband's death. Moreover, I don't think the lenders will come after the insurance policy of your husband. They will contact your husband's ex for the payment. If the ex dies, your husband can sell off the property and pay off the debts to get rid of it. Your husband should force his ex to sell off the property asap as it is mentioned in the divorce decree.
Feel free to ask if you've further queries.
Sussane
Hi bholder99,
Welcome to Mortgage fit,
In my opinion you should ask your husband's ex to opt for a PMI..(Private Mortgage Insurance)..So in any of the situation mentioned above by you, you and your family will be protected from the financial burden...
Obviously the PMI installments can be paid by your husband and the amount can be deducted again through child support...(Although it is illegal to do so)..Orelse you can ask your husband's Ex's new boyfriend to make payment towards the PMI installment...
This will surely save you from all the future risks....
Feel free to ask any further query if you have...
DIPA
Welcome to Mortgage fit,
In my opinion you should ask your husband's ex to opt for a PMI..(Private Mortgage Insurance)..So in any of the situation mentioned above by you, you and your family will be protected from the financial burden...
Obviously the PMI installments can be paid by your husband and the amount can be deducted again through child support...(Although it is illegal to do so)..Orelse you can ask your husband's Ex's new boyfriend to make payment towards the PMI installment...
This will surely save you from all the future risks....
Feel free to ask any further query if you have...
DIPA