Keeping Home if Mortgage in Husband's Name

flora maestas · #1 07-26-2005, 08:19 PM

What is the name of your state? New Mexico

The house where my husband and I live is mortgaged under his name only. Initially, he purchased it before we were married and then, just recently, he refinanced it.
We thought it better to refinance under his name since
the original mortgage was his and I am not employed nor do I have very good credit (thanks to my ex) Anyway, several years ago, we had executed a quitclaim deed on the house from him to both of us but I have never recorded it due to my credit issues. I did not want to risk tarnishing his credit or having anyone come after the house because of past issues not related to my husband.
So.... my question is .... should my husband die before me and I were to record this deed, would I be entitled to ownership of the house ( assuming I continued payments on the mortgage) or does the mortgage company have the right to repossess it since my name was not listed on the mortgage? What if I paid it off? Would I be given title to it or would there still be an issue because the mortgage was in his name only? We are now preparing a will in which I will be listed as sole beneficiary of all his assets. Will this ensure my keeping the house or is there something more we need to do?

Thanks

Some Random Guy · #2 07-26-2005, 08:39 PM

When he dies, the mortgage will become due. This generally means that you will need to refinance the mortgage in your name within a short time (30 days or so).

You would be better off putting the home in both of your names. Otherwise, you will have some more hoops to jump through in order to get the home refinanced. Your owning part of the home should not affect your husband's credit score. That is determined by loans, not by ownership of assets.

Are you at a point where you your credit issues will not result in any judgements against you and the house?

flora maestas · #3 07-27-2005, 08:03 PM

Most of my bad credit has already been written off so I don't anticipate any judgements.

When you say put the house in both our names, would the Quitclaim deed which we have prepared from him to both of us suffice? If I were to record that now, what does the mortgage company do if my husband were to die before me? Do they acknowledge that I have right of survivorship
according to the recorded deed? Will they allow me to continue making payments even though the mortgage was in my husband's name only? When I pay off the home, would they release the mortgage to me, at that time?

Some Random Guy · #4 07-27-2005, 08:23 PM

Most of my bad credit has already been written off so I don't anticipate any judgements.

OK - cancel the idea of putting your name on the deed. Just because it is "written off" doesn't mean that you can't be sued over it. Written off just means that the creditr doesn't think that they will ever get their money back so their accountant values the debt at $0 or some trivial amount.

But as soon as you put your name on some real estate, you may become a target for debt collectors.

Before you put your name on the house, make sure all of your other debts are paid off or past the statute of limitations for the state where you incurred the debt.