Can bank come after current wife/family for debt?

[lotrgandalph]

What is the name of your state (only U.S. law)? Mississippi

My ex-wife and I have an outstanding home mortgage loan. I have since remarried. If I should die, could the bank come after my current wife or my family to collect on the loan if the loan was done before I was married to her?

 

[Just Blue]

What is the name of your state (only U.S. law)? Mississippi

My ex-wife and I have an outstanding home mortgage loan. I have since remarried. If I should die, could the bank come after my current wife or my family to collect on the loan if the loan was done before I was married to her?

No..They would come after your estate.

 

[penelope10]

What is the name of your state (only U.S. law)? Mississippi

My ex-wife and I have an outstanding home mortgage loan. I have since remarried. If I should die, could the bank come after my current wife or my family to collect on the loan if the loan was done before I was married to her?

The bank could go after your estate if any monies are outstanding at the time of your death. I assume your ex was awarded the home in the divorce. Was there any mention of a time frame for the house to be refied?

You could perhaps call the lender to see if there is any type of mortgage protection that could be taken out on the home should something happen to you. Of course, this would end up greatly benefiting the ex, and be at a current monetary cost to you. However, it would protect your estate for your current wife and any children the two of you might have. (And might be worth it if the cost is relatively cheap).

 

[lotrgandalph]

reply to penelope

Penelope,
It's an odd situation. The loan was in my name and my ex's name. Last year we sold the house to an investment company. They have a certain time period (4 more years) to sell the home. The investment company has ownership of the house, however the loan is still in my name and my ex's name, though the company is paying the monthly payments. It was that or bankruptcy...so we chose the lesser of two evils.
Hopefully, the company will sell the home and pay off my loan. If they sell at a loss, they are still responsible for paying off the balance of my loan. So barring any natural disasters, I will be done with this in a few years. But until then, something could happen, in which case the ownership of the house goes back to me and my ex and we are once again responsible for those monthly payments.
IF that were to happen and something had happened to me (ie, death or accident resulting in inability to earn income), could the bank come after my current wife for payment?
Also, can you explain what it would mean if the bank came after my estate?

 

[TinkerBelleLuvr]

Why not take out a life insurance policy that could be used to pay off your portion of the mortgage - term life - with your wife as beneficiary?

 

[penelope10]

An estate would be property that was owned prior to your death. (This could include real estate, monies, investments, etc.)

Ginny had a good idea in regards to taking out a term life policy and making your current wife the beneficiary. Depending on your age and health (plus whether you smoke or not) a term policy can be fairly reasonable cost wise. (In comparison to some other types of life insurance policies) Your wife could then use the funds from the insurance to pay off any outstanding debts of the estate,and/ or use the money to supplement living expenses in the years to come.