Viewing a single comment thread. View all comments

NotYourDude t1_j6ibcgu wrote

Reply to comment by kbc87 in How to leave house to fiancé in the event I die before we marry? by [deleted]

Is that all it takes? My concern (and ignorance) would be how the bank would then handle the existing mortgage. The bank would honor my will and then it would be assigned to my fiancé?

1

kylejack t1_j6ic1sr wrote

Federal law requires banks to allow family members to assume the mortgage if it's left to someone at death, but the same does not apply to unmarried partners. If she can afford the mortgage and credit is okay, there is a good chance they will let her. If they don't let her, she would need to either secure a new mortgage with another lender, or sell the house and she can take the equity and buy or rent somewhere else.

One idea is to have a secret courthouse wedding right now and then save the full wedding event with family and friends for later. Nobody has to know but you two and the justice of the peace.

10

kbc87 t1_j6ic1r5 wrote

Either your estate will have to pay off the mortgage or she will need to keep making the payments on it. But yes she can get the loan transferred to her. They may make her refinance it, but it can and would be done in that case.

2

wickedkittylitter t1_j6iphx4 wrote

Not correct. An unmarried partner has no right to assume a loan. The bank may allow it, but they are not legally obligated to do so.

1

kbc87 t1_j6iq8iz wrote

Hence I said they may make her refinance..

1

manwnomelanin t1_j6iemnl wrote

Get term life insurance with the death benefit for the amount of the mortgage and list her as the beneficiary

1

jessda t1_j6ibnub wrote

Just to clarify, until you pay off the mortgage the bank has the title and owns the house.

−5

hellolittlebears t1_j6idpo9 wrote

That’s not accurate. You do in fact own your home, but the bank has a claim to it if you fail to pay your mortgage.

5

itsdan159 t1_j6iearq wrote

Yeah I usually say "let someone slip on some ice on your property, you'll find out fast who actually owns it, and it's not the bank"

5

KennstduIngo t1_j6imgwr wrote

And the bank has never, not once, come to cut the grass when I called them and told them it was getting long!

0

jessda t1_j6kquj7 wrote

The bank holds the title until it’s paid. That the “legal owner”. Very confused as to why that’s a debate.

1

NotYourDude t1_j6ibzih wrote

Yes I know, and is the real genesis of my question.

1

kylejack t1_j6ii0ax wrote

This varies by state. In some states the homeowner is the listed owner on the title, with the bank having a lien. Even in states where the bank is listed as the owner, they don't have a lot of powers you might expect of an owner, such as the right to sell the house whenever they want.

1