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Loren
Loren, Attorney
Category: Estate Law
Satisfied Customers: 29021
Experience:  30 years experience in the practice of estate law.
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I have a friend that is on the deed to their house but is

Customer Question

I have a friend that is on the deed to their house but is not on the loan. Her husband recently passed away. His name was on the loan. I talked with the lender today and they told me that my friend is not liable for the loan because her name is ***** ***** it. She can not afford to keep the house and she wants to put it on the market. My question is this:
If she sells the house, is she obligated to pay the loan off? The bank says no. I am a realtor and I understand that the title will not be clear unless the loan is paid off. Will that lien be passed on to the buyer? This will probably be an all-cash offer.
Also if she does not pay off the loan, will the lender be able to go after her deseased husband's estate?
Thank you so much for any help.
Submitted: 11 months ago.
Category: Estate Law
Expert:  Loren replied 11 months ago.

Good evening. I am Loren, a licensed attorney, and I look forward to assisting you.

Expert:  Loren replied 11 months ago.

Was the property owned in joint tenancy? Is the lender willing to issue a release of their lien?

Customer: replied 11 months ago.
No, I prefer to keep typing because my friend is paying for this.
Expert:  Loren replied 11 months ago.

Was the property owned in joint tenancy?

Customer: replied 11 months ago.
I already answered that question so I'm not sure if this is working correctly. Yes the property is in joint tenancy she believes. We have not asked the bank if they would release the lien, however they did say that they would start foreclosure after 5 months. They are giving an extra 60 days because of the circumstances. I'm sure the property will sell fast.
Expert:  Loren replied 11 months ago.

Thank you for the additional information. If the the surviving spouse did not sign the note then she has no personal liability for the loan, but the lender can pursue the estate of the spouse who signed the note to seek repayment.

WIth regard to the lien of mortgage, in certain jurisdictions if a mortgage loan is signed by only one joint tenant, and that joint tenant dies, the surviving joint tenant takes the title to the property free and clear of the mortgage lien. So, if WA ia one of those jurisdictions then the surviving spouse may sell the property free and clear of the mortgage lien and the lender is limited to seeking repayment from the probate estate of the deceased spouse.

Customer: replied 11 months ago.
What if the estate is in a safe harbor trust? Would the lender be able to touch that? They are just starting their probate and the eldest son will be named the executor of the estate.
Expert:  Loren replied 11 months ago.

Presuming the mortgage was not defective in content or execution, the trust would not provide protection from a mortgage lien.

Expert:  Loren replied 11 months ago.

Did you have further questions? Have I answered your question?

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