Posted on: 10th Sep, 2009 12:07 pm
My soon to be mother-in-law is upside-down in her mortgage, paying $1600 a month. She wants to deed the house over to my fiance because she is ill and once she goes onto disability she won't be able to afford to make the monthly payments anymore. She told him that when she dies, he should get around $20,000 from her life insurance and if he applies "the better part of that" to the mortgage, that would pay off her 2nd, lower the monthly payments and no longer be upside-down in the loan. I know that once we're married, what's his is mine, is this something that might turn into a nightmare for us? I didn't think you could deed property when there is a 2nd loan on it. (Neither of us has ever owned property)
hi slane,
the property can be deeded in your fiance's name but your mother-in-law will have to inform the lenders about the same. the lenders may want your fiance to refinance the loan in his name or else, they may call the loan due immediately. however, you should note that your fiance will not be able to refinance the loan if he has a bad credit score or if the property does not has equity.
thanks
the property can be deeded in your fiance's name but your mother-in-law will have to inform the lenders about the same. the lenders may want your fiance to refinance the loan in his name or else, they may call the loan due immediately. however, you should note that your fiance will not be able to refinance the loan if he has a bad credit score or if the property does not has equity.
thanks