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Only deceased spouse on mortgage, but both on deed.

My spouse died 4 years ago and was the only one on the mortgage, we are both on deed. There is only the mortgage in spouse's name, everything else is in my name. I was advised to just continue paying mortgage payments. I have been doing that until recently the homeowners insurance went up so much it has caused the escrow to increase the payment so that I am 2 months behind. Found lower insurance but when they notified BAC of the insurance change BAC is now wanting to talk to me. They said they need to change it to my name, which probably means a new mortgage in my name which I can't afford. What should be my next move? by wavejkl from Powder Springs, Georgia. Jan 5th 2011 Reply


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#0 ranked lender in

In order for me to be able to completely understand the situation, why would you not be able to afford a new mortgage under your name if you are fine with what it is now? The only reason that I see, is that maybe you have credit issues and that would result in a higher rate. If so, this is what I would try. Talk to BAC. See if they will let you assume the mortgage as is, without having to do a new mortgage. You would be able to prove to them that you have been making payments on it for the last 4 years. This should work in your favor. Just when you talk to them, make sure you are talking to a manager or someone higher up, since the customer service reps are like robots reading from a screen and you won't get anywhere. I would also talk to an attorney first and see what the legal aspects of this are, since it is possible that they may be able to just take the house, unless you switch it in your name. The judicial system that we live in, always seems to amaze me with it's stupidity. Good luck, I hope everything works out for you.

Jan 5th 2011
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Joe Shamie (Joe Shamie)
#1 ranked lender in New Jersey - 1,407 contributions

It is a tough call. From a practical standpoint, as long as the loan is "performing" (meaning you are makingt he payments) I dont think they will have an issue leaving things as is. However, you wont know until you talk to them. They may be able to do a simple "modification" of the loan documents to put the loan in your name without having to do a full blown REFI. I dont think you have anything to lose by talking to them.

Jan 5th 2011
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Gary Crist (coloradoreversemortgagelender)
#1 ranked lender in Colorado - 40 contributions

If your spouse died, I am going to assume you are over 62. If you have enough equity in your home you should look at a Reverse Mortgage, for there are no income qualifications and your heirs will get what is left over of your equity when you die just like if you died tomorrow your heirs would get the cash left over after the sale of your home. You can learn more about Reverse Mortgages on my website: http://loanofficers.50stateslender.com/gary/reversemortgages.html

Jan 5th 2011
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Melissa Mason (mmason)
#10 ranked lender in Connecticut - 20 contributions

I think the 1st thing you need to find out about is the Succession of Real Estate laws in the State in which you live. This will give you an idea of your rights before you talk to the bank. I would talk to a Real Estate Lawyer for advise you can find one by either calling a Real Estate Company and ask who they use for closing, or go into your local bank and ask them who they use for their closing. Don't just use the yellow pages because most attorneys can do a real estate closing, but you want one who specializes in real estate and knows the laws.

Jan 7th 2011
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