If someone dies and they were the only one on a 2nd home mortgage, will going in default ruin spouses credit?
599542
It is a federal law not state. Any debt incurred to either parties while married become the dual responsibility of both partys, weither a signed agreemnt is vild or not. THe dad is responsible for the morgage if it goes into default. So long as your friends parents are married. There is nothing he can do about this short of filling for bankruptcy. He must continue the payments, if it goes into default its his tail. Simillar things happen if on parent filles for bankruptcy and the other doesn't. Then all the bills accrued in the one parents name now automatically get switched to the spouse. Its not fair but it is the way it is.
784350
not enough info....two loans? 1st and 2nd?  home equity etc. unless there is equity in the home that you can access, the only option is a personal loan  unless you sell the house and have it deeded in both names...a reverse mort might be an option, however, that is usually only avail to seniors.....you could do a promissory note and use purchase money mort as a way to have the one party buy even amounts...ask a real estate atty
875255
You are asking a question that borderlines the unethical.  Bottom line, unless your debt has been legally discharged such as by a bankruptcy court, you owe the money, and they can follow you to your grave literally, by making a claim against your estate when you die.  Live right.
632214
I am a mortgage specialist.  I specialize in helping people with challenging credit.  What are you calling "very bad credit?"  What are your credit scores?  The payments that you are currently making on the mortgage are not being applied to your credit file because your name is not on the mortgage.  If you are making the payments on time, then you are giving your husband's sister good credit because the payments are being applied and recorded on her credit bureau.  This situation is too complex for us to discuss here.  Please contact me at wwi_2@yahoo.com as soon as possible.
843535
It depends upon how the account was held.  If it was a true joint account, which carries with it the right of survivorship, when one owner dies, the other becomes the owner of the funds in the account.
262889
I am not an attorney. If your husband owed the money as an individual - then he was liable for the debt not you. If you filed joint tax returns, then you too MAY be liable for a portion OR/AND all the back taxes. It is really up to you whether or not you wish to pay your deceased husbands debts.\n\nLife Insurance is paid out to you tax free - I'm not an accountant either - If your late husbands creditors know there is life insurance, there is a good chance they will try to make a claim on it.\n\nConsider seeking legal aid, to make get a clear picture as to how you stand, so you can get on with your life and know that you and your children are safe.\n\nI am sorry for your loss.\n\nTake care, and good luck.
310742
If you live in a community Property state then yes you are responsible for them.  Any and all debt incurred during a marital community is the responsibility of BOTH parties.\n\nI am sorry for your loss, and best wishes for the future.
282042
1) Depends primarily on whether the debt was incurred before or after marriage (or partially both)\n2) Also depends on your state law (whether the debt is characterised as community property)\n3) May also depend on whether the borrowing was made against community property assets (e.g. credit card debt, student loan, personal loan vs. remortgage, home equity loan, loan against 401K or stock).\n\nProbably you mean a CC debt from before a marriage?\nIn which case the answer is probably no.\nHowever *beware* that lenders may still try to recover against the other (more responsible?) spouse and this may damage your credit. So make sure your lack of liability is spelled out in any legal settlement or MSA.
936346
There's a couple things they should consider: First, as previously mentioned, joint tenancy gives automatic survivorship rights to the other party if one party dies.  This is great for a married couple, not good for two unrelated guys buying a home together.  They should probably take title as "tenants in common".  This is usually done with investors, and anyone else that may not wish their stake in the home to go to the other party with no compensation.\n\nSecond, and BEFORE THEY CLOSE, they need to find an attorney who can advise them on a couple issues.  First, what happens if one person dies?  If your BF's friend dies, his stake in the property is locked up in probate for a while.  A will should probably be drafted for both parties to address what happens to their stake.  If the BF's friend leaves his stake to his parents, is there a buy/sell clause?  Your BF should have the right to buy out his partner's stake, before being forced to sell the home to cash-out his heirs.  \n\nLastly, the will should probably address the survivor's rights to collect on payments for X amount of time, or something to protect your BF from having to make 100% of the payments during the transition period.\n\nAssuming this is being purchased as an investment, they may wish to incorporate themselves, to protect their personal assets against lawsuits, etc...  They can potentially purchase the property and quit-claim the deed into their corporation's name.  It is very common for partners like this to purchase some form of cheap term life insurance to cover the other in case of their death. \n\nBottom line, he has no business completing this transaction without spending a couple hours with a competent real estate attorney.  A few hundred bucks today could save many thousands later, if for any reason tragedy did strike.  \n\nThe attorney can always draft the purchase agreement for you for a nominal cost.
1022048
A mortgage involves a note and  a (trust) deed. Unless you expressly deeded an interest to your home to your ex-husband, you are the still the sole owner and he is obligated on the mortgage note (Sucks to be him if you default). \n\nThe disposition of the house and the mortgage (and debt) should have been explicitly dealt with in your divorce. If you had a divorce lawyer, you should contact the lawyer to determine if your EX has any legal rights to the home.\n\nMortgage companies and banks do not tend to be careless where a legal owner and spouse sign a note and trust deed. You may be obligated by the note. \n\nThe mortgage, however, would not entitle your EX to any interest in your home.
138763
Only when the loan is payed off, or...if the other persons credit is strong enough to re-finance, which again, would pay off your loan. You signed saying you'd be responsible for the debt, even if the other defaulted.
1005923
You will still be responsible for the debt on this home.  They can freeze assets, an can keep you from ever getting another mortgage.  They will either send it to a collection agency or go ahead and pursue further action like litigation.  Then it just becomes more costly b/c of court cost, attorney fees, and the remainder of the balance on the home.  The bank doesn't care that it went up in an auction.  They didn't say that you didn't have to pay b/c you no longer have the house.  Doesn;t work that way.   \n And anyone that tells you not to pay, are ignorant morons.  Its people like that, that make it harder for the ones with good credit and standings with creditors to get credit.  And even makes it harder for you.  Makes you look really bad.  Pay your bill.  Be the better person, not a dead beat debtor.
522189
It depends on several things.  Assuming both spouses are receiving a social security monthly pension (benefit}:\n  1.) If the deceased spouse's benefit is less than the surviving spouse's benefit, then, there will be not a change and the surviving spouse will just continue receiving the same benefit with no additional amount coming from the deceased spouse's benefit;\n   2.) If the deceased spouse's benefit is greater than that of the surviving spouse's benefit, there will be an increase in the surviving spouse's benefit based upon the amount the deceased spouse was receiving.  It will ;not be the entire amount of the deceased spouse's pension.  The surviving spouse will not get both benefits.\n\nIf the surviving spouse is otherwise eligible for a social security benefit but did not qualify for one because he or she is receiving a different government pension (civil service, teacher's etc.}then,he or she will still not be able to get a social security pension even though the deceased spouse had one.\n\nIf the deceased spouse was receiving social security pension benefits and the surviving spouse was too young to be eligible for social security benefits, the surviving spouse will receive a survivor's benefit until that spouse is eligible to receive pension benefits and then that spouse will receive the higher of his or her own benefit or the one that is derived from the deceased spouse's benefit and but the survivor benefit will cease.\n\nIt can get even more complicated if the surviving spouse was previously married to a different  person for ten years and was drawing social security benefits based on that prior marriage.  The surviving spouse, then, gets a choice.  The surviving spouse would be able to select which ever benefit was higher: i.e., the benefit from the  prior husband or one derived from the present deceased spouse's benefit.  I think you can now see the complexity of the question  A call to the Social Security Office will help you to understqnd your precise situation that gave rise to this question..
258877
Sure.  The last time I did a second mortgage on my home I closed with a title officer at my kitchen table.
231695
I'm not sure if it's different in community property states, but generally speaking, if there is only one name on the mortgage, only that person's credit will be affected. The deed just refers to who has title to the home. \nOptions would be to rent it (which he's trying to do) or sell it before it goes into foreclosure. But if he sells the property, the wife will get some of the proceeds because she's on the deed. He should try to get her to sign off on the deed so it is under his name only.
882522
Actually, it could effect it - it depends upon the type of loan and whether or not it's past due.  For example,  if a spouse is delinquent in paying child support and the the attorney general has filed some sort of paperwork with the IRS to withhold the tax refund.  Also, past due school loans could garnish the refund.  In these type of cases, the other spouse may be able to file an "injured spouse claim" to claim a refund for their part of income and tax, if applicable.  \n\nIf there are just regular loans, other than mortgage, this will have no bearing on filing.
443490
If you have a joint account with your spouse, you are obligated to pay the remaining debt. So you would have to use the life insurance money to pay it. To answer your question, no one has access to the life insurance money except for the named beneficiary in the policy.