Q: My husband and I obtained a mortgage on our home in 2001. He passed away last year and I am current on my mortgage payments.
I am afraid to notify the bank of his passing because my salary alone more than likely would not meet income requirements. Am I in default by not notifying the mortgage company of his passing? Thank you for your expert advice!
A: When your spouse dies and you are on the mortgage, you continue to be the borrower under the loan and continue to own the home.
While the lender might see your spouse’s death as a transfer of title, there are federal laws that prevent the lender from calling the loan due to his death. You could talk to a real estate attorney about the issue, but unless you are refinancing your loan and need to apply for a new loan, your loan should remain in place.
You can notify the lender that he has passed away, but you may not have an obligation to tell them. You should remain current in your payments and take care of your family and yourself.
You should know that if you held title to the home jointly, you inherited your husband’s half of the home automatically and probably don’t need to anything to change the title to the home.
If you refinance the loan in the future and want to make sure that the only name that shows up on the title to the home is yours, you can work with the title company or settlement agent to take care of any paperwork to do that.
Hope this helps.
Read more about estate planning and what to do in case of the death of your spouse.
perfect for info we needed to assure are life planning .
My husband passed away a month ago. We refinanced our home through Spire Credit Union due to a lower interest rate. I had to go to the bank to pay off his truck so I could sell it and of course she saw we had the house through them. She told me I would have to refinance the house even though my name is on it and also on the joint account. I have never heard of this and I have talked to several mortgage people and they have never heard of this. Do credit unions have a different list of rules and regulations then a bank or mortgage company?
My husband and i have been paying on our home since 1998. We have a very high interest rate of 9%. Four yrs ago this month my husband became very ill and was put in disability. We were very behind on the house because we had to wait two yrs before getting disability started. We filed chapter 13 bankruptcy and it began coming out of my check beings I was the only one working. My husband passed away last yr. I found out that I am not on the loan..but they continue to take it out of my check. I can’t find out any info on my house or anything pertaining to it. What does this mean? What do I do? They have been notified that my husband passed and they do take my money..I just don’t understand.
Bankruptcy ends next October.
What is the answer to this earlier question? My husband passed away a month ago. We refinanced our home through Spire Credit Union due to a lower interest rate. I had to go to the bank to pay off his truck so I could sell it and of course she saw we had the house through them. She told me I would have to refinance the house even though my name is on it and also on the joint account. I have never heard of this and I have talked to several mortgage people and they have never heard of this. Do credit unions have a different list of rules and regulations then a bank or mortgage company?
She is likely incorrect (and I say likely because it’s always possible that you have some sort of strange mortgage that they kept in their own portfolio with some strange set of rules attached to it – but highly unlikely). When your spouse dies and you inherit the property, lenders will generally allow you to be named on the existing mortgage to the property, particularly if you’re married. What you should do is talk with her superiors, provide the death certificate and proof that you will inherit the portion of the property you already own.
You should keep working your way up the food chain at the credit union until you find someone who is able to help you with what you want to do – or who can point to a written rule that requires you to refinance that loan.
And, if that’s the case, ask for a 6-9 month time period and then go find another institution entirely to call home.
Sending you condolences on the loss of your husband. (This sort of mess is the last thing you probably want to think about right now.)
Ilyce Glink, Publisher
Hi, Im married to a veteran who is !00%service connected disabled. Our home is financed thru the VA but my name is not on the mortgage only on the deed. What would happen if he passed away? Would I still be able to keep the same VA mortgage?
HI Donna, yes, you will be able to assume the mortgage fully. No worries.
My husband is fine and healthy. We have no plan to divorce but as a housewife who no longer is employed I fear I would be evicted if ever…God forbid… something happens to him. In his business he drives a lot and I worry that if he ever passed away I would not only be heartbroken but immediately homeless. That is my worse fear. Many years ago we broke up and then got back together. This house is not in my name. Do I have any rights and how much time would I have to get out if I had to?
Help Im scared my husband died of Covid and he is the only one on the home loan Im afraid to tell the loan company in fear they can take my home ,I have been paying the monthly payments with no problem I want to keep my home, My husband did have a will that states he left all property to me.Do I have to tell them he passed?I live in the state of Tennessee.Im hoping I can just take over the loan with no problems.Thanks Laura
In these sorts of situations, lenders do not call the loans. They allow you to assume the loan as the spouse and heir. You should find a real estate attorney or estate attorney to help you sort things through and work with your lenders and creditors.
I’m so sorry for your loss. This pandemic is just horrifying.
My husband passed in May, 2020. We refinanced 10 years ago…He has the mortgage in his name only. I am not on the loan. Do I need to refinance in my name or just transfer names..Or will they require me to refinance.?….Not sure what to do. I have the opportunity to refinance at a lower interest rate. I am just not sure what to do. If the loan company comes back at me saying I need to get his name off the loan and I need to refinance into my name than I could pay more interest and more expense of lenders fees., At this time I have never notified the lender abut his passing. They get paid on time each month..