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Redfin Real Estate Forums :
Washington DC/Baltimore :
Obligations of surviving Co-Borrower if one Co-Borrower passes away
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Obligations of surviving Co-Borrower if one Co-Borrower passes away
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K11268
Contributor
Posts: 11
Registered: 08-16-2009
Message 1 of 18
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Hi I've had conflicting conclusions on this subject and wanted to seek Redfin community expert advice. My partner and I are considering buying a home together as co-borrowers on the mortgage and co-owners on the title of the home. Supposing one of us passes away, (a) will the surviving partner be responsible of the half of the mortgage that was supposed to be paid by the co-borrower who passed away? (b) will the surviving partner be forced by the mortgage company to pay up the entire mortgage or sell the property? (c) what difference will it make if we have a property sharing agreement with joint tenancy with survivorship rights? Thanks in advance for helping me clear up my confusions.
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11-01-2009 11:46 AM
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Re: Obligations of surviving Co-Borrower if one Co-Borrower passes away
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pea_soup
Regular Contributor
Posts: 56
Registered: 08-10-2007
Message 3 of 18
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I'm just lay as well but would be surprised if the common sense answers were incorrect: (a) yes (b) no (c) if title is held as joint tenants, upon death of one of you, the property passes to the other automatically. if title is held otherwise, possession of the decedent's share will depend upon the will / process of probate. Don't trust any one's advice with anything important, especially anonymous free advice from these interwebs.
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11-02-2009 03:38 PM
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Re: Obligations of surviving Co-Borrower if one Co-Borrower passes away
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pea_soup
Regular Contributor
Posts: 56
Registered: 08-10-2007
Message 5 of 18
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NP. But I'm sure curious how your lawyer explained to you that the answer to your question "(a) will the surviving partner be responsible of the half of the mortgage that was supposed to be paid by the co-borrower who passed away?"
could be anything but "yes". So how did the lawyer explain that you wouldn't be responsible for the mortgage?
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11-03-2009 07:43 AM
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Re: Obligations of surviving Co-Borrower if one Co-Borrower passes away
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RubyTue
Contributor
Posts: 17
Registered: 07-02-2009
Message 7 of 18
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pea_soup wrote:
(c) if title is held as joint tenants, upon death of one of you, the property passes to the other automatically. if title is held otherwise, possession of the decedent's share will depend upon the will / process of probate.
It depends on how its done. For example, in Virginia, there is Joint Tenants with Rights of Suvivorship (which works as you said), and Joint Tenants in Common (where the deceased shard of the house passes per a will).
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11-03-2009 02:25 PM
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Re: Obligations of surviving Co-Borrower if one Co-Borrower passes away
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K11268
Contributor
Posts: 11
Registered: 08-16-2009
Message 9 of 18
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maybe I should clarify I didn't get clear yes / no answers more of "maybe" and "it depends" answers. The mortgage will most likely be on a joint and several basis esp for the standard Fannie and Freddie products. In this case it doesn't matter if either borrower is around/doesn't pay, the other borrower is responsible for the entire amount due. There could be cases where the mortgage is not joint and several and then the situation become more murky - depends on whether there's a living will, whether it's joint tenancy/ tenancy in common etc. Guess these mortgages would be agency loans where the bank takes the loan on its books. So I was just trying to get additional perspectives and entangle all the "maybe" and "depends" scenarios
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11-03-2009 06:59 PM
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