To be safe, the general rule of homeownership comes down to whose names are listed on the title of the home, not the mortgage.
If your spouse passes away, but you didn't sign the promissory note or mortgage for the home, federal law clears the way for you to take over the existing mortgage on the inherited property more easily.
Yes, it is entirely possible for a person's name to be on the deed without being on the mortgage. For starters, a mortgage is only involved if the buyer of the home needed assistance financing their home purchase.
Some lenders, however, may indicate a “primary borrower.” The criteria for determining who this person is differs among mortgage lenders. Some may define the primary borrower as the person with the higher income, for instance, or as the person whose name appears first on the application.
Property deeds do not generally affect ownership rights based on the order in which the names appear.
Both owners of the home, typically being spouses listed on the deed, do not have to both be listed on the mortgage. Remember that the mortgage does not indicate who the owner of the home is, so not being listed on the mortgage will have no effect on your ownership of the home.
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. However, if you default on mortgage payments, the mortgage lender has the power to foreclose on the home and evict you.
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.
Regarding property ownership, two essential documents are the deed and mortgage. Out of these two, the deed is undoubtedly the most important one. It acts as concrete evidence of your rightful ownership of the property.
In many cases, the spouse can inherit your house even if their name was not on the deed. This is because of how the probate process works. When someone dies intestate, their surviving spouse is the first one who gets a chance to file a petition with the court that would initiate administration of the estate.
If the property is not in your name, you will need to determine if you have the legal right to sell it. This could be the case if you are the executor of an estate, the power of attorney for the owner, or if you have a valid contract or agreement with the owner giving you the right to sell the property.
If the mortgage had a co-signer, the surviving borrower must continue making payments. If the house has been bequeathed to a beneficiary, they must continue making payments or sell the house.
A couple can jointly own assets, but only if both names are on it. In a common law state, only putting one person's name on the mortgage and home deed means their spouse has no ownership interest in the property. They have no right to the property if their spouse wants to sell it or dies and leaves it to someone else.
The short answer is: You, the homeowner, typically hold the deed to your house, even when you have a mortgage.
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.
The right to potentially assume (take over) the mortgage.
All successors in California have a right to apply for an assumption of the loan, as long as the loan is assumable. The servicer may evaluate your creditworthiness, including your credit scores, when considering you for an assumption.
You can absolutely be on the title at closing without being on the loan. This is very common for unmarried couples or situations where one partner has better credit/income. Just make sure you both understand the implications of only one person being on the mortgage initially.
In the states with community property laws, all assets, including houses, cars, jewelry, etc., are divided in half between the spouses. It means that if you bought a house during your marriage, it qualifies as jointly owned, even if only your name is on the title or deed.
You can take legal action against them for breaching the agreement you both made or seek a court order to force the sale of the property. It's important to consult with a lawyer to understand your legal rights and options and to make the best decisions for your situation.
When evaluating borrowers for a joint mortgage, the lender cares less about who is listed first, and more about the sum of the applicants' earnings and debts. In general, the lender evaluates the application the way the applicants submit it, without regard to whose name is listed first.
Conclusion. Adding your spouse's name to the title of your house can provide shared ownership and equal rights, but it also comes with financial and legal implications. Ultimately, the decision should be based on your individual circumstances and what's best for you and your spouse in the long run.
For a community property in California, it depends upon when and how their spouse acquired the property. The law asserts that all property purchased during the marriage, with income that was earned during the marriage, is community property.