What are an person’s rights if they are on a deed but not on the bank loan?

Get Legal Help Today

 Secured with SHA-256 Encryption

What are an person’s rights if they are on a deed but not on the bank loan?

I have a question concerning a property that my wife and I have a bank loan on and are the only 2 people on the deed. I’d like to add my son to the deed so that if anything happens to the 2 of us, he will inherit the property. There seems to be a problem with whether or not the property would belong to him if there exists an outstanding loan at the time of my wife’s and my death. Our bank says that it does not matter to them who else is on the deed and that at the time of our death, they would take the property since the loan is unpaid. If I add my son onto the deed, does he have a chance to retain the property even though there is an outstanding loan? The bank says that he needs to be on the loan prior to our death in order to take over the payments.

Asked on August 11, 2012 under Real Estate Law, New Hampshire

Answers:

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

Answered 8 years ago | Contributor

It sounds as if you are trying to do a little estate planning and that is great.  But this is not the forum to do it in.  You may not be able to transfer the deed (or create a new deed adding your son) because that would violate the mortgage agreement and allow the bank to call in the loan.  You son can, though, inherit the property - under a Will or Trust - and continue to pay the mortgage and the bank can NOT foreclose.  He can continue to pay until it is paid off in fact. The executor would transfer the deed to him after probate. Under the law this is an exception to the "rule."  Get help.  Good luck.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption