Again, the deed and a mortgage are both important documents that are a part of the homebuying process. However, the key difference between a deed vs. mortgage is that the deed is the only document that legally proves who owns the home. In this sense, it may be considered the more important of the two.
While the details may be different, the most likely scenario is that you'll have to refinance the house with you being the sole name on the mortgage, you'll pay him his equity owed (either from cash on hand or as part of the refinance), and he'll sign a quit claim deed to surrender his interest in the property.
If your name is on the mortgage, but not the deed, this means that you are not an owner of the home. Rather, you are simply a co-signer on the mortgage. Because your name is on the mortgage, you are obligated to pay the payments on the loan just as the individual who owns the home.
Because you are not on the mortgage, you have no personal liability for the mortgage payments. If the loan were to go into default, the only risk to you would be the loss of your interest in the property through foreclosure, but the lender could take no other action against you.
The person whose name is on the deed is the legal owner of the property. That means that they have the right to make decisions about the property – including selling it.
If your name is on the mortgage but not the deed, you are financially responsible for the loan but do not have ownership rights. This situation can arise if you co-sign a loan or take out a mortgage for someone else's property.
In the event you opt for two names on the title and only one on the mortgage, both of you are owners. The person who signed the mortgage, however, is the one obligated to pay off the loan.
If solely in the deceased spouse's name
The surviving spouse can often assume the mortgage, but this process may involve credit checks and lender approval. If the surviving spouse cannot assume the mortgage, other options must be explored to prevent foreclosure.
However, in a community property state (like California) – and even some states without community property laws – a home purchased during the marriage is considered marital property, regardless of whose name appears on the deed.
If your name is on the deed but not on the mortgage, your position is actually advantageous. The names on the deed of a house, not the mortgage, indicate ownership. It's the deed that passes real estate ownership from one entity to another.
Yes, you can add someone to your property title without including them on the refinanced mortgage loan.
In California, you own the home, with your mortgage owner(s) having first rights to any proceeds from a sale.
Generally speaking, a person cannot be removed from a deed without their knowledge and consent. It is possible to remove someone from a deed illegally by recording a new deed with a forged signature. However, such a deed resulting from fraud or forgery is void and can be easily removed by a court.
You, as the homeowner, typically hold the house deed to your property, even with a mortgage. The house deed and mortgage are separate legal documents with different purposes. A deed proves ownership and transfers title, while a mortgage is a loan agreement.
In other words, if your name is on the deed, you are tenants-by-the-entireties, and if one of you dies, the other owns the property entirely. If you are not on the mortgage for whatever reason, you are not liable for paying the mortgage loan. That said, you get your spouse's interest in the property if they die.
Adding Children's Names to Your Property. It is very common for parents to put their children's names on their bank accounts, deeds, and other property so that the children can assist their parents with paying bills or managing their finances. It is also quite common as a do-it-yourself estate planning technique.
In community property states, such as California or Texas, an heir could have a partial claim to a jointly-owned property. For example, if an unmarried couple owned a home together and one owner died, their portion of ownership could be inherited by their next of kin.
If your name is not on the mortgage, you're not obligated to pay money to repay the loan. If your name is on the deed, then you're an owner of the property. If it's only your name, you can sell or rent the property as you wish.
The deed to the property will name the two owners as joint tenants. Since each party has a claim to the property, they also share the benefits. If they decide to rent out the home to another individual or if they sell the property, each party is entitled to a 50% share in the profits.
If your surviving spouse isn't on the mortgage, federal law provides protections allowing them to assume the mortgage and keep the home. This is assuming they (and not someone else) inherit the property. The surviving spouse must also be able to afford the mortgage payments to assume the mortgage.
In a buy/sell transaction, this means that all grantees on the deed of conveyance must sign the new mortgage. If the lender or borrowers wish to have a buyer removed from the mortgage, that buyer must also be removed from the deed.
No, the wife is not entitled to half, but she is entitled to an "equitable" share of the property.