Husband Commercial Mortgage , Life insurance proceedings ..

[Evanshi]

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


My husband invested on a office building.

I am not on property deed.
I don’t think my husband has written any will. I feel awkward to ask him..
I think , he said once , if some thing happens to him , lenders won’t come after me or children.
Lender will sell it off and extort their money. As the market value of that building is down, he doesn’t think there would be any owner’s (his) equity left
to pass on to me or children.

1. What happens if more tenants vacate , and my husband defaults? What does lender do? Fore closure ? What is Short Sale that I read ?
2. what happens to his life insurance policy proceedings , if in case of a death ?
3. Does the lender go after our children , would they be liable to pay ?
4. What happens to my husband’s equity ?

Please , any answer would be greatly appreciated. Thank You in advance.

 

[FlyingRon]

If he doesn't pay the note, the bank can indeed foreclose. A short sale is where the bank agrees to release the security on the property for less than they are owed (which may or may not include forgiving the rest of the balance).

At his death, his estate (any assets he owns) can be grabbed in a judgement. If the insurance policy has a beneficiary other than him/his estate (i.e., you or the kids) it will not be touched however. THat money will not be in the estate.

Other people (heirs or whatever) are not responsible for the debt. Only the property that he owns can be taken.

He will lose any money he puts in unless the property sells at foreclosure for MORE than what the banks and other lien holders are owed.

 

[Evanshi]

I am (Wife) the beneficiary on his Life Insurance Policy

Thank You very much for your response.

If he doesn't pay the note, the bank can indeed foreclose.

Could you please explain what is note ? Is it same as Will ?

At his death, his estate (any assets he owns) can be grabbed in a judgement.

He doesn't own any thing else in U.S. other than this Office building. But , we own a house jointly in a foreign country....
Would that be grabbed into judgement ?




Thank You very much once again.

 

[FlyingRon]

Question is , his Policy proceedings ( in case of his *****) will go to medical building lenders?

If you are the beneficiary, the money is solely yours.

Then how do I handle this medical building after him ?

Well, the proper way would be to establish probate and have someone appointed administrator over the estate to handle distributing the assets to the creditors or heirs. Really depending on what else is involved, you probably could just walk away at that point.

Since, I am not a co-owner , would lenders will approach me after his ***** ?

Depends if you are responsible for the loan. Are you also listed on the mortgage. If so, that changes things. Yes they can come after you.
You agreed to pay.

Do they foreclose regardless of vacant rate or payments being met ?

As long as the payments are made the bank isn't likely to foreclose.

Should I ask him to write will now ? If he writes will , would I be liable to his mortgage?

Being named in the will will not make you liable for the mortgage. The will only indicates the preference for the distribution of what remains of the estate after the debts are taken care of. You will not be liable for the mortgage unless you have agreed to be liable for it.

 

[justalayman]

Thank You very much for your response.

I am the sole beneficiary on his Life Insurance Policy in U.S.
Question is , his Policy proceedings ( in case of his *****) will go to medical building lenders?

Hope , I am not asking silly questions ...

silly questions? If you don't know the answers, they aren't silly, especially given the topic.




Texas is a community property state which means debts and assets gained during the marriage are owed and owned by both parties. In Texas there are laws that affect if and how much any creditor can seek from you as his spouse. You and he need to set down with a lawyer who can review your situation and advise you. This is much too complex to depend on an internet forum for much of anything more than general information.