Posted on: 28th Sep, 2008 09:35 am
i am hoping you can help me with this difficult question. i am in a same sex relationship, and my partner is the one whose name is on the mortgage to our home and he makes all the payments. we have mortgage insurance, but we called our mortgage company to find out how we can make sure if anything happens to him the home would be transferred to me, because being a same sex couple we cannot get married in our state and therefore there are no guarantees the home will go to me or that one of his family members will not try to step in and take it from me. we do have a living trust and will made giving each other all rights to property, but we are trying to cover all the bases so to speak (and then some) so that no one challenges anything as so often happens with same sex couples -our rights are usually trampled on because we have no rights under the law as a couple in most of the usa.
our mortgage company agent stated the following, and i would like some information if this is true: " i probably shouldn't be telling you this, because the mortgage companies don't like this information getting out, but, if you do a quit claim deed, not only will all rights go to your parnter, but even if there is money owed on the home, the mortgage company can no longer legally try to get this payment or foreclose as the home is now transferred to someone else whose name is not on the mortgage and therefore not legally responsible for payment as the deed grantor is no longer living."
is this statement true? will the home now legally belong to grantee? and will this also stop our mortgage company from coming after any remaining debt or foreclosure since the home is in someone elses name now? our mortgage insurance only applies for accidental death, so it would give us some peace of mind this was true in case of death due to natural causes. thank you for any help on this, as this issue is complex for same sex partners.
our mortgage company agent stated the following, and i would like some information if this is true: " i probably shouldn't be telling you this, because the mortgage companies don't like this information getting out, but, if you do a quit claim deed, not only will all rights go to your parnter, but even if there is money owed on the home, the mortgage company can no longer legally try to get this payment or foreclose as the home is now transferred to someone else whose name is not on the mortgage and therefore not legally responsible for payment as the deed grantor is no longer living."
is this statement true? will the home now legally belong to grantee? and will this also stop our mortgage company from coming after any remaining debt or foreclosure since the home is in someone elses name now? our mortgage insurance only applies for accidental death, so it would give us some peace of mind this was true in case of death due to natural causes. thank you for any help on this, as this issue is complex for same sex partners.
Hi pnightbird!
Welcome to Forums!
Your partner can sign a quitclaim deed in your name which will give you the right to property even after his death. Regarding your mortgage query, I would say that when your mortgage agent had said this, he must be right. You can even consult an attorney in this regard or speak to the mortgage agent personally.
Feel free to ask if you have further queries.
Sussane
Welcome to Forums!
Your partner can sign a quitclaim deed in your name which will give you the right to property even after his death. Regarding your mortgage query, I would say that when your mortgage agent had said this, he must be right. You can even consult an attorney in this regard or speak to the mortgage agent personally.
Feel free to ask if you have further queries.
Sussane
Hi pnightbird!
Quitclaim deed will be the best way of transferring the ownership of the property in your name. Or you may also sign a deed which can make you the co-owner of the property. However, if you become a co-owner, there are chances that the lender will ask you to pay off the debts in case something happens to your partner.
Thanks,
Jerry
Quitclaim deed will be the best way of transferring the ownership of the property in your name. Or you may also sign a deed which can make you the co-owner of the property. However, if you become a co-owner, there are chances that the lender will ask you to pay off the debts in case something happens to your partner.
Thanks,
Jerry
One thing to add to Jerry's comment above is that the quit claim deed should state that title is being conveyed to you and your partner "as joint tenants with full rights of survivorship", that way when one of you dies the title to the property will automatically pass to the survivor.
your mortgage company agent is a fool. as long as a mortgage is outstanding on a home, the mortgage company can enforce the terms of that loan, regardless of whether the original signer of the note is alive or dead. that means you can, indeed, be the recipient of a foreclosure notice if you neglected to pay the mortgage.
when your partner signed the promissory note, he promised to pay the loan in full upon transfer of the property. transfer includes any quit claim he might use to add you as an owner. that's not to say that the lender will enforce the due in full clause, but it's something to be aware of.
and i call the mortgage company agent a fool rather than accusing him of lying. that's the high road, i would surmise. i'm glad you had enough sense to be wary of the advice you were given.
the two of you can certainly provide yourselves more protection in the form of insurance policies, but i would also think that whatever legal steps you've already taken will be beneficial (trust, will, etc.). yes, you run the hazard of having other family members protest, but perhaps you can smooth those paths over before anything happens that brings the question up.
when your partner signed the promissory note, he promised to pay the loan in full upon transfer of the property. transfer includes any quit claim he might use to add you as an owner. that's not to say that the lender will enforce the due in full clause, but it's something to be aware of.
and i call the mortgage company agent a fool rather than accusing him of lying. that's the high road, i would surmise. i'm glad you had enough sense to be wary of the advice you were given.
the two of you can certainly provide yourselves more protection in the form of insurance policies, but i would also think that whatever legal steps you've already taken will be beneficial (trust, will, etc.). yes, you run the hazard of having other family members protest, but perhaps you can smooth those paths over before anything happens that brings the question up.
Add yourself to title with a quit claim deed. Also make sure that both of you are on a surviorship deed. If anything were to happen, title will transfer to the other without having to go through probate. You can get this done through a title company or real estate attorney.