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glendagree · Joined: 06 Apr 2010 Posts: 1 1.00 Dollars($)

My husband passed away 6 months ago. Our home Loan was in his name only. I was not a co-borrower on the loan. I did sign on the Deed at the Title office at the time of purchase. My question is; the lender says I am not responsible to pay back the loan because it's not my loan. They tell me to stop making payments on the loan and walk from the house. I don't want to move, but they are forceing me to. The house was in the Family Trust in our Living Trust and everything is mine, except I don't owe the loan. I offered to assume the loan at current market value and they won't let me, but they will let another party. I am still making payments on the loan of my husbands every month. The loan was a 7 year Interest only loan and it will adjust in 3 more years. I dont know what to do. I am afraid to follow their advice that they will come after the Living Trust after they make me walk. What should I do? I need help!!

jameshogg · Posted: Tue Apr 06, 2010 9:48 pm Post subject:

Hi glendagree,

As your name is not on the mortgage docs, you are not responsible for the payments. Thus, if you stop making the payments, the lender will foreclose the property and recover the dues but it won't affect your credit in any way. As you are still making the payments, it will be a better option to refinance the loan in your name and pay off the dues. You can contact the lender and check out if they will help you in getting a refinance.

cahealthandhome · Joined: 07 Apr 2010 Posts: 1 1.00 Dollars($)

I'm not entirely sure about this, but I suspect the bank content to continue to receive monthly payments. Often time, they are indifferent as to who is paying so long as they get their interest.

As for your ARM, working with the bank that has your current loan is a good first step. You'll get a sense of what other lenders will want/require when underwriting a loan. Time appears on your side if you have 3 years to go on your fixed ARM (assuming you don't believe in "hyper-inflation and higher mortgage interest rates.)

Guest

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Guest

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Wife not on Loan of Home