What happens to mine and my husband’s house when my father dies, if I’m on the note with my father?

In order for my husband and I to purchase a home (he has a job but horrible credit and I have no job but excellent credit), my father and I are the ones who had to be on the loan. When my father passes away, what will happen to my home even though my husband’s income is what pays the note?

Asked on January 14, 2013 under Estate Planning, Louisiana


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You are doing a bit of estate planning and that is really a good thing. But you should really speak with a qualified planner  in your area on the matter to be sure about things.  First, how is the deed to the property held?  Just you and your Father?  Do you have "rights of survivorship" on the deed?  You should as it will then pass automatically to you at the time of his death rather than through probate.  And if you have siblings that could be an issue with out a Will.  Now, if the property passes to you via inheritance the bank can not call in the loan as it could if you sold the property.  It is an exception to the "due on sale/transfer" clause that comes standard in every loan.  Your husband should be on the deed as well.  That is fine.  Good luck.

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