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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