Two people on a deed, one person on the mortgage

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Old Mar 12th, 2010, 07:30 PM   #1
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Confused Two people on a deed, one person on the mortgage

Michigan - The husband and wife are on the deed to their home, The mortgage is in the husband's name only. The husband recently died, and now the home is in foreclosure. What rights does the wife have to the home?
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Old Mar 12th, 2010, 08:06 PM   #2
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Default Re: Two people on a deed, one person on the mortgage

She has the rights to the home but the loan still has to be paid for and brought current.
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Old Mar 12th, 2010, 11:55 PM   #3
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Default Re: Two people on a deed, one person on the mortgage

She can keep the house, keep the mortgage in his name with the same terms and conditions, but she has to pay on it as the prior poster stated.

If the home is foreclosed and there's any equity to be released (rare) then she's entitled to it.
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Old Mar 13th, 2010, 10:38 AM   #4
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Default Re: Two people on a deed, one person on the mortgage

If she cannot pay the mortgage, and the home is in foreclosure, she will face eviction. While his death automatically gave her sole possession of the house for deed purposes, the lender is who still actually owns the property, as there is obviously still money owed on it.

She will have to either work with the lender to come up with payment, or risk eviction by foreclosure.

She cannot keep the mortgage in his name. That is considered fraud. He is deceased. In a scenario where she were not in foreclosure and chose to keep paying on the home, she would have to alert the lender of her husband's death and take over the mortgage in her own name. She could do this with the same lender, or she could choose another lender to refinance the home with.
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Old Mar 14th, 2010, 12:00 AM   #5
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Default Re: Two people on a deed, one person on the mortgage

Federal law prohibits "calling" the mortgage if the original borrower dies but another person with ownership in the collateral takes over the payments. It is not fraud.

I happened to have just recently go over all this with my bank and atty as I am alone on the mortgage but hubby is on the deed with me. The odds are *extremely* good that I will predecease him and I was afraid he and the kids would be forced out of the house.
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Old Mar 14th, 2010, 01:45 PM   #6
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Default Re: Two people on a deed, one person on the mortgage

Not correct in its entirety. Lenders can, indeed, "call" a mortgage when a person dies. It is why estates are responsible for a decedent's affairs after death.

A person can place anybody's name on a deed, as many people as they wish to. Names on deeds are not the same as names on mortgages. Further, the lender does not "automatically" allow whomever name is on the deed to take over payments, as, the lender needs to know the owner left the property is in a financial position to take over such payments. The lender has the most risk, as it is their property and the money is owed them. So the person whose name is on the deed, should they wish to retain the property (if a mortgage is owed) needs to contact that lender, go through the application process, and get the loan in their name. They could be denied.

Take for example, a stay at home wife whose husband just died. Both names are on the deed, and his estate cannot take care of paying the mortgage after his death. The wife, having probably no credit, or perhaps bad credit, and no means of provable income, cannot logically afford to take over the payments.

Names on deeds and names on mortgages are two entirely separate matters.
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Old Jun 23rd, 2014, 04:32 PM   #7
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Confused Re: Two people on a deed, one person on the mortgage

What if the mortgage and deed are in both husband and wives name and one spouse dies, does the remaining spouse still have to re qualify on their own?

We are signing for a Mortgage in Michigan next week. The Mortgage is only in my husbands name but I still have to sign everything and they ran my credit. The deed is in both names. Is this the best way to do this. Fannie May also gave us a higher rate because I have an unpaid medical bill on my credit report, but yet my name is not on the Mortgage Papers. Confusing Absolutely.
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Old Jun 23rd, 2014, 06:33 PM   #8
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Default Re: Two people on a deed, one person on the mortgage

No, federal law actually prohibits "calling the loan", as long as the monthly payments continue to be made.

Your credit doesn't affect the mortgage unless you are going to be on it.
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Old Jun 24th, 2014, 12:47 PM   #9
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Default Re: Two people on a deed, one person on the mortgage

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Originally Posted by Unregistered View Post
What if the mortgage and deed are in both husband and wives name and one spouse dies, does the remaining spouse still have to re qualify on their own?

We are signing for a Mortgage in Michigan next week. The Mortgage is only in my husbands name but I still have to sign everything and they ran my credit. The deed is in both names. Is this the best way to do this. Fannie May also gave us a higher rate because I have an unpaid medical bill on my credit report, but yet my name is not on the Mortgage Papers. Confusing Absolutely.
What do you mean, "I had to sign everything." Did you sign the mortgage note? When a couple is married, both husband and wife have to sign the mortgage. Recheck the escrow papers. For I am confused now, too.

When there is an existing mortgage and one spouse dies, as long as the mortgage is paid according to its terms and conditions, there is nothing else to do. Death does not call the mortgage note as long as regular payments are made. The only effect is that when it is paid off a fulfillment deed needs to go to the heir who inherited the property.
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