Effects of Removing Deceased Spouse from Title

[fgs]

What is the name of your state? AL
My spouse passed recently and our home was titled joint with rights of survivorship. I have been told that I need to remove spouse's name from title. There is still a mortgage on property, and of course that is in both names. I was wondering what effect changing the title would have on the loan -- accelerate it or have to requalify or what. Does anyone here have any experience with this? Thanks in advance for your input.

 

[yZenhymer]

Re: Loan - It most likely depends on your loan conditions, the fine print. If there is a due on death clause, rare, but I had one, that usually means that either the note is due and you would need to refinance a new loan to pay off the current one, or they can raise the interest rate to some un-holy rate many percentage points above it's current rate.

If you are not confident in reading the fine print of your loan, then I would speak with a trusted RE: loan specialist who can assist you, however they may not have your best interest as they make money doing new loans, but perhaps you can get with a family friend who is busy enough that they will give you good advice.

Also in recent times competition has reduced the qualifications for home loans, and if your loan to value ratio (LTV) is low enough to quality, then for example there is what's known as "Stated Income" they will not review your tax returns but accept your income as stated. There is also "Easy Qual" another flavor of stated income where they look at your credit score and not much else provided the LTV is still within the lender's guidelines.

HTH

JeffP.....