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If both husband and wife are on the deed to the house but husband is the only one on the mortgage if something were to happen to the husband would the wife have to refinance?
Wiki User
∙ 15y ago
Technically the wife and husband own the home while the husband is the only one who owes money to the lender. The property has been pledged to the lender to secure the loan. If the loan has a due on sale clause or other restrictions then there could be a situation where the lender will call the loan due. It is rare for a lender to make a loan to only 1 party who is on the deed. Normally what has happened is an individual took out a loan secured by a property when they were the sole owner. Later the other party, the spouse, was added to the property's title. Normally this is a technically violation of the Due On Sale (DOS) clause in the mortgage contract if you check the fine print. The transfer while valid has triggered a situation where the lender is free to call the loan due. In many cases a better solution that to put the wife on title when the husband already owns the property is to have the husband deed the property to a trust and then have the trust set up so the wife retains the ability to live in the property and to otherwise gain the same benefits as owning the property. The key with a trust is the DOS clause is not triggered when the trust is being used for estate planning. Providing for one's spouse after something happens is exactly what estate planning addresses. If the wife is on title and the husband is no longer alive, the wife may or may not be asked to pay off the loan. If that is the case she can refinance or use savings to pay off the loan. In many cases the lender will not take any action if the payments remain current. Insurance is one possible way to help the wife protect her interest if the husband was to die or otherwise not be able to work and she is on title. It may or may not be the right solution in any particular situation. Insurance can also be a good solution even if the property is in trust as it can provide a lump sum so the wife has fewer economic problems. Assuming the wife is being asked to pay off the loan and she lacks the means to either refinance or pay off the loan from savings then a sale of the property becomes the normal solution. Otherwise the lender can start a foreclosure action to force a sale at auction.
Wiki User
∙ 15y ago
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If a husband is the only one on the mortgage if something were to happen to the husband can the wife buy other house as primary residence?
Contact a First American Title office nearest to you or a real estate attorney to assist you with this. It depends on the real estate procedures and laws in your state.
How can one refinance a home mortgage?
There are three things need to be considered before refinance a home mortgage. First, Check the payoff, even with a lower rate, a new mortgagee is not always the best move. Second, set the expectations, refinancing can save money in the long run, but it is not a cure-all, and it does not happen quickly. Finally, Shop around, prices, rates and packages will vary from lender to lender.
In NJ can you be on the deed but not on the mortgage?
Yes, it's possible to be a grantee on the deed and not listed on the mortgage. All owners of the property are supposed to sign and be listed on the mortgage, but this doesn't always happen. During the refinance frenzy a few years ago, some lenders gave out mortgages to only one owner. If that is the case and there is a default on the mortgage, the lender can only foreclose on the interest of the person who actually signed the mortgage. See related question link.
How to Prepare for Getting a Mortgage with a Balloon Payment?
There are many different types of mortgages available and it can be very confusing to choose the right kind. One of kind mortgage that is almost never a good idea is a mortgage that has a balloon payment. Here are some things you should know before deciding to finance your home with a mortgage that has a balloon payment at the end.First of all, you should understand that a mortgage containing a balloon payment is never intended to be permanent. The number of years you can pay on the loan before you need to refinance varies, but with this type of mortgage, you always have to refinance. If you do not refinance your mortgage before the balloon payment comes due, you could lose your home to foreclosure.There are two big reasons why getting a mortgage that has a balloon payment is a bad idea, and both reasons come down to one common denominator: it is impossible for anyone to predict the future. When you use a mortgage with a balloon to finance your home, you are counting on being able to refinance the loan at some point in the future, and there is no way you can know for sure that you will be able to do so.One thing you are counting on when you enter into a mortgage with a balloon payment is that your credit score will remain high enough that you will be able to get a new mortgage when the time comes. However, your credit score is not completely under your control. There are things that can happen which can wreak havoc with your credit. You could get laid off from your job and have a long stretch of unemployment before you find something else, or you could get into an accident or become ill and unable to work. If something like this happens, you could find yourself saddled with huge medical bills that you may never be able to pay. That can destroy your credit very quickly.You also have no control over the interest rates and terms that will be available in the future. When you get a mortgage with a balloon payment, you could find yourself facing much higher rates when the time comes to refinance, which could result in a higher monthly payment than you can afford. Because you never know what the future will bring, it is almost always better to avoid a balloon payment mortgage if you have any other option.
How a Refinance Calculator Can Help You Decide Whether or Not to Refinance Your Mortgage?
If you are like a lot of people, you have probably changed you mind about a thing or two in the years since you first acquired your mortgage and bought your home. At times, people find that the deal and loan that sounded so wonderful when they signed up for it isn't really all that great; for instance, you might want to change things so that you can pay off your home more quickly and without paying so much in interest, or you might be looking for a way to lighten your load by reducing your monthly mortgage payment. Regardless of the reason that you would like to make changes to your mortgage, you might want to do a bit of research before you make these major changes. Fortunately, a refinance calculator can help you decide if refinancing is the right financial decision for you. For instance, you can use a refinance calculator to determine what will happen if you choose to shorten the length of your mortgage. You will see your increased monthly payments, which will allow you to determine whether or not you will be able to fit these payments into your monthly budget. You can also see how much money you will save over the length of your mortgage by refinancing instead of keeping your mortgage as it is now. This can help encourage you to make the switch if you think you can afford it, and you might be impressed by just how much money you can save in the long run by reducing the amount of interest that you pay. A refinance calculator can also help you decide if refinancing your home is a smart financial decision for your financial situation; for instance, you probably won't want to refinance if you find that your monthly mortgage payments will be too high for you to realistically pay, regardless of how much money you can save in the long run in interest. If you are looking to lighten your load and make things a little easier on yourself, a refinance calculator can help you decide if extending your mortgage is a good decision. You will be able to determine how much you can reduce your mortgage payment by every month, and you will also see how much more you will pay in interest over the length of your mortgage if you choose to do so.
What happens to the first mortgage when the second mortgage is foreclosed on?
It depends....the 2nd mortgage holder can buy out your first mortgage and then foreclose on the entire property , the chances are higher of this happening is the 2nd mortgage is kinda large or if they are held by the same lender. If the 2nd mortgage holder decides not to buy the first mortgage out then typically nothing with happen because the first mortgage holder is in control. The 2nd mortgage cannot foreclose on the first mortgage so keep the first mortgage payments current.If the 2nd does not buyout the first then the lien with remain on the property and you will be require to pay it off if you sell or refinance the property down the road.Mortgage loan officer PAIn Texas the law is: http://www.avvo.com/legal-answers/tx-foreclosure-second-trust-deed-4498.html
What can happen with an adjustable mortgage?
The monthly mortgage payments go up or down from year to year.
What is the statute of limitations on second mortgage in CA?
A second mortgage is not included in a Statue of Limitation law. Explain more about your first mortgage, and I will be able to tell you what will happen to your second mortgage.
What can happen with an adjustable-rate mortgage?
The monthly mortgage payments go up or down from year to year.
Which of these describes what can happen with an ajustible-rate mortgage?
the montly mortgage payments go up or down from year to year.
What happen if you borrowed money to individual person but he put to much interest?
Refinance unless is still in process.
What happen your mortgage if you lost your incame?
If you have mortgage insurance that covers the reason of your income loss (disability, involuntary unemployment) then the insurance company will pay the premiums according to your policy's benefits schedule. If you don't have mortgage insurance, you can use savings, retirement funds, borrow money, or you can try to negociate your mortgage terms with your lender. Unfortunately, many mortgage clients believe they don't need mortgage insurance and they find themselves forced to file for bankruptcy and lose their home if something happens. The PMI (private mortgage insurance) will protect your mortgage payments and help you keep your home!
