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quicken · 10-31-2007, 02:09 PM

My husband's parents agreed to use their name for financing a home 4 1/2 years ago. They didn't put forth any monies as to the down payment or anything pertaining to this home since. We pay the mortgage online through my husband's and my personal checking account and have done so since 2003 when the home was purchased. Our credit was less than perfect and we knew we would pay an arm and a leg for a 79,000 home. We are, however, on the deed with them. My mother-in-law passed away 2 mths ago and I have since faxed a copy of death certificate to the mortgage company. What happens after my father-in-law passes away?<br />

realtime · 10-31-2007, 02:09 PM

Well it depends on a few things such as...what estate planning has occured to this point, what State are you in so we can refernce you particular laws?

Generally speaking, you should be fine. You are on the deed, so you own the property in part. I suggest you change the insurance policy so that it reads with each individuals name with the additional clause..."as their interests may appear." Should there be a settlement...everyone gets paid according to their current interest.

Regarding the mortgage should your father-in-law pass. There are a few things to consider. Your lender is in the business of making money, not buying houses. The loan has been in their name for some time...but the funds are coming from your and your husbands accounts. The lender has not complained, right? So possibly, nothing will happen as long as payments continue to get paid in full and on time.

If you are more concerned about estate planning issues, then consult with a real estate attny who can provide local insight about putting your home into a trust. Many families use this route to avoid probate issues, transfer issues, etc.

drewmeyer87 · 10-31-2007, 02:09 PM

In general, you shouldn't worry too much. So there were 4 including you and your hubby on the Deed now 3 because your mother-in-law past. Did she have any will? If no, that's fine too. However, you will need to record your mother-in-law's death certificate to your county court. And for the most lender's if mortgage payment is paid right on time every month, they are happy. They make a issue when payments are not received. You should really consider refinancing your house under your husband or under your name soon and take your father-in-law's name out of Deed.

007 · 10-31-2007, 02:09 PM

Since you are already on the deed, if your father-in-law passes, there won't be a probate problem with your right to the property. Because, the mortgage will still be in his name though, this could be an issue. You have a couple different options.

1) You could refinance the property into yours and your husbands name, this way, you are both on the deed and the mortgage. This is what most choose to do.

2) You could buy credit life insurance on the home for your father-in-law. This way, when the passing of your father-in-law does occur, you'll own the property free and clear. The deed will be in your name already, so remember, you won't have any problems with probate.

Most people go for option number 1, because it's rather morbid to think about the passing of ones parents. However, if you are comfortable making the payments the way they are, just chip in the extra money for the credit life insurance and explain your plans to your father-in-law to make sure he's okay with it.

This way, you won't be charged the fees for refinancing the mortgage, and you'll continue to reap the benefits of the already good rate. You can get credit life through the current mortgage lender many times or through an insurance agent.

Good luck.

10-31-2007, 02:09 PM	#1
quicken Greenhorn Join Date: Jul 2006 Posts: 27 Rep Power: 6	mortgage in a parent's name but we are included on deed? My husband's parents agreed to use their name for financing a home 4 1/2 years ago. They didn't put forth any monies as to the down payment or anything pertaining to this home since. We pay the mortgage online through my husband's and my personal checking account and have done so since 2003 when the home was purchased. Our credit was less than perfect and we knew we would pay an arm and a leg for a 79,000 home. We are, however, on the deed with them. My mother-in-law passed away 2 mths ago and I have since faxed a copy of death certificate to the mortgage company. What happens after my father-in-law passes away?<br />

10-31-2007, 02:09 PM	#2
realtime Greenhorn Join Date: Jul 2006 Posts: 27 Rep Power: 6	mortgage in a parent's name but we are included on deed? Well it depends on a few things such as...what estate planning has occured to this point, what State are you in so we can refernce you particular laws? Generally speaking, you should be fine. You are on the deed, so you own the property in part. I suggest you change the insurance policy so that it reads with each individuals name with the additional clause..."as their interests may appear." Should there be a settlement...everyone gets paid according to their current interest. Regarding the mortgage should your father-in-law pass. There are a few things to consider. Your lender is in the business of making money, not buying houses. The loan has been in their name for some time...but the funds are coming from your and your husbands accounts. The lender has not complained, right? So possibly, nothing will happen as long as payments continue to get paid in full and on time. If you are more concerned about estate planning issues, then consult with a real estate attny who can provide local insight about putting your home into a trust. Many families use this route to avoid probate issues, transfer issues, etc.

10-31-2007, 02:09 PM	#3
drewmeyer87 Greenhorn Join Date: Dec 2006 Posts: 9 Rep Power: 0	mortgage in a parent's name but we are included on deed? In general, you shouldn't worry too much. So there were 4 including you and your hubby on the Deed now 3 because your mother-in-law past. Did she have any will? If no, that's fine too. However, you will need to record your mother-in-law's death certificate to your county court. And for the most lender's if mortgage payment is paid right on time every month, they are happy. They make a issue when payments are not received. You should really consider refinancing your house under your husband or under your name soon and take your father-in-law's name out of Deed.

10-31-2007, 02:09 PM	#4
007 Greenhorn Join Date: Jul 2006 Posts: 16 Rep Power: 0	mortgage in a parent's name but we are included on deed? Since you are already on the deed, if your father-in-law passes, there won't be a probate problem with your right to the property. Because, the mortgage will still be in his name though, this could be an issue. You have a couple different options. 1) You could refinance the property into yours and your husbands name, this way, you are both on the deed and the mortgage. This is what most choose to do. 2) You could buy credit life insurance on the home for your father-in-law. This way, when the passing of your father-in-law does occur, you'll own the property free and clear. The deed will be in your name already, so remember, you won't have any problems with probate. Most people go for option number 1, because it's rather morbid to think about the passing of ones parents. However, if you are comfortable making the payments the way they are, just chip in the extra money for the credit life insurance and explain your plans to your father-in-law to make sure he's okay with it. This way, you won't be charged the fees for refinancing the mortgage, and you'll continue to reap the benefits of the already good rate. You can get credit life through the current mortgage lender many times or through an insurance agent. Good luck.

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