Property Q&A in Fort Worth>Question Details

lgfarris, Home Owner in Dallas, TX

Our son is going to take over our house payments . If something happened to both of us could he continue to pay our mortgage until it is paid off

Asked by lgfarris, Dallas, TX Thu Jan 17, 2013

With today's restrictions on financing he might not be able to qualify--what then?

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Recommend have an attorney involved. It might require where you establish a trust for the property.

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
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0 votes Thank Flag Link Fri Jan 18, 2013
Maybe yes, maybe no.
1. Look at your loan documentation.
2. Ask your family attorney.

There is something in most mortgages that says "due on sale" so effectively if the bank wanted to follow their rules, they perhaps could call the loan due.

You might also have family/financial issues in your estate. For example if you have more than one child or debts or other situations, he might have to sell the house. This you want to address with your attorney.

It's probably worth him looking at getting his own financing in place. Maybe at a lower interest rate.
0 votes Thank Flag Link Fri Jan 18, 2013
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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I recommend you look at your loan documentation. It may include conditions that cover the death of the borrowers.
0 votes Thank Flag Link Thu Jan 17, 2013
It sounds like you are saying your son is an adult who makes enough money to handle the house payment on the property you are living in. Assuming that ---
The bank or mortgage company you make your payments to doesn't care who sends them the check as long as they get it on time every month. But what happens after you both die is another question.

First of all, let me say you need to consult an attorney for legal advice, as the real estate agents on this website cannot answer legal questions. Do you have a Will? --If not, you need to prepare one immediately. (I have helped clients in the past do that.) It is not difficult to get one drawn up.
But questions arise for what happens after your death. Is the son you are referring to your only child? Is he living in the house with you? Or will he live in the house after you die? It is very possible that the bank or mortgage company wil allow him to inherit the peoperty and continue making payments monthly. They may not notice, or they may not care who makes the payment. But he probably cannot qualify to take over the note, and I think that is what you were asking. If he has good credit scores, and provable income, then he might be able to assume your loan.
Please feel free to contact me and we can discuss the issues in more detail. You may also wish to consult with an attorney about your estate. But a Will can be drawn up by anybody, as long as you have witnesses and get their signatures notarized.

Best regards,

Rick DeVoss

ULTRA Real Estate Services

817-300-6121

RickDeVoss@Realtor.Com

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0 votes Thank Flag Link Thu Jan 17, 2013
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