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If my niece is on the title but not the loan will she be respondible for it should I pass before I pay it off?

by dexter563 from Cushing, Minnesota. Mar 16th 2021 Reply


Joe Becker (JoeBecker)
#58 ranked lender in Minnesota - 62 contributions

Hello, great question. It gets asked often. If your niece is on title but not on the note, she is in ownership but not obligated UNTIL you pass. Once this happens then your note will be still due, so she will need to have an avenue to take over the note or sell to payoff the note owed. Hope this helps!

Mar 16th 2021
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Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,300 contributions

No, and Yes. No, she would not be obligated to make payments on the note and the Bank could not force her to. If she did not make the payments, the bank would likely foreclose on the home, take it back, sell it and use the proceeds to pay off the loan. However, if she wanted to keep the house, she could. Since she is family, and if she were to inherit the home from you, she would have the option of notifying the bank that she has inherited the home and she wants to assume responsibility for the payments. By law, except in very rare instances, like with a Reverse Mortgage, the lender MUST transfer the loan into her name and allow her to assume responsibility. It would be her option to say no, if she felt the home was worthless than what was owed. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Licensed in AZ, CA, GA, IL, OR & WA... In fact, NEXA is licensed in all states except MA and NY and we are pending approval in VA, so give us a call. ~ www.ApplyYes.com 480-889-9000.

Mar 16th 2021
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,409 contributions

Yes and no... She is NOT responsible for the loan itself, but as an owner, she'll have to deal with the existing loan after you pass by somehow paying it off with either a refinance of the loan into her name, or selling the property to pay off the loan, as the loan takes 1st position. I lend in Minnesota, Wisconsin, Iowa, North Dakota, and South Dakota. Find me online at FirstTimeHomeBuyer-MN.com. Cambria Mortgage, NMLS 274132

Mar 22nd 2021
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