Home Buying in Crete>Question Details

Nala, Home Buyer in Crete, IL

I am the name on the mortgage but my son & daughter in law will be paying mortgage, what are ramification of their names being on dead?

Asked by Nala, Crete, IL Wed Jan 25, 2012

Help the community by answering this question:


Before proceeding with such an arrangement, consult with an attorney; he/she can best advise as to any ramifications...
2 votes Thank Flag Link Wed Jan 25, 2012
If they're on the deed, then they're the owners. You'd be in a touchy situation: You'd be the one responsible for the mortgage (even if they're paying for it), but they'd own the property. That's generally not a good place to be.

Further, if the mortgage has a due-on-sale clause, if you transferred ownership to your son and daughter-in-law, you'd be in violation of the clause. Thus, technically, the bank could demand immediate payment of the entire mortgage. That's not too likely in today's market, but you should be aware of the possibility.

If you're doing it for estate planning purposes, don't do it without first checking with an estate planning attorney. There usually are better ways to transfer ownership (generally using a trust).

In any case, check with an attorney before doing anything.

Hope that helps.
1 vote Thank Flag Link Wed Jan 25, 2012
Don Tepper, Real Estate Pro in Burke, VA
There are significant ramifications to adding new parties to a deed. For example, if they have any issues with creditors that lead to judgments, then liens could be placed on the property. In certain instances, such a lien could result in a forced sale of the property. There could also be tax implications. Consult an attorney before making a decision of this magnitude.
0 votes Thank Flag Link Fri May 31, 2013
Hello Nala,
It appears that your name would also be on the deed if you are on the mortgage, so it sounds like you are adding them to the deed so that they can refinance to property out of your name at some point in the future. This is common, if this is the situation. Their name on the deed gives them joint ownership in the property in the event that something were to happen to you, but it also makes for an easier transition if they are going to refinance from you at some point in the future.
0 votes Thank Flag Link Wed Jan 25, 2012
If I was paying a mortgage I would want my name on the deed. If you alone are on the deed now and should pass away the house goes through your will and could be subject to a lot of legal stuff. If all your names are on the deed then it passes to the rest on the owners at your death. Speak to a lawyer about adding their names along with yours.
0 votes Thank Flag Link Wed Jan 25, 2012
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