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Wife's responsibilities on the estate of late husband.

New Baltimore, MI |

My husband did a loan modification in 2010 with a company that is not the original mortgage company.He passed away 3 months ago. After his death I noticed on the modification papers that I am not listed as a co borrower. I am on the deed of the home. Letters from mortgage company are addressed to the estate of my husband. There is no estate or money left from my husband to pay. Foreclosure letter has arrived due to 4 months behind in payments. I also found out recently that the original mortgage company was sold to modification company. How could they/my husband take my name off the loan? I am I responsible for this debt? Also what happens to the foreclosure when I am on the deed?
Also there is not a copy of the loan on file in the county I live in. Thanks

Attorney Answers 3

Posted

You would need to meet with an attorney to discuss a strategy to proceed with your situation.
If you are not on the mortgage(or any mortgage) you are not liable for the debt and possible judgment.
However-you will be named in the foreclosure lawsuit because you have an interest in the property as your name is on the deed.
Many attorneys spend a lot of time on foreclosure defense, short sales, and loan modification law.
You have many opportunities in this stressful time in your life.

The answer given does not imply that an attorney-client relationship has been established and your best course of action is to have legal representation in this matter.

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4 lawyers agree

Posted

I agree with Attorney Pippen. You need to consult with a lawyer and take care of this right away, if you have any hopes of retaining the home. Whether you are on the loan agreement or not is not really relevant. Because the lien attaches to the property, and this is a secured debt, if you do not make payments, the lender can foreclose on the house. If that happens, you will have about six months to vacate the property.

There may be other options, as Attorney Pippen alluded to, however. You should explore these with a probate/real estate attorney as soon as you can.

James Frederick

*** LEGAL DISCLAIMER I am licensed to practice law in the State of Michigan and have offices in Wayne and Ingham Counties. My practice is focused in the areas of estate planning and probate administration. I am ethically required to state that the above answer does not create an attorney/client relationship. These responses should be considered general legal education and are intended to provide general information about the question asked. Frequently, the question does not include important facts that, if known, could significantly change the answer. Information provided on this site should not be used as a substitute for competent legal advice from a licensed attorney that practices in your state. The law changes frequently and varies from state to state. If I refer to your state's laws, you should not rely on what I say; I just did a quick Internet search and found something that looked relevant that I hoped you would find helpful. You should verify and confirm any information provided with an attorney licensed in your state.

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2 comments

Asker

Posted

I have talked to the modification company. The company is Ocwen. they are offering me a new modification of the mortgage. I have about 2 weeks to send them the documents necessary for me to become the borrower of the loan. The only phone number to call is in India. The person I talked to finally gave me advice on what I can do and that is to apply for my own modification/ They understand that I am not responsible for the original one. Every time I called the call center, I was only encouraged to may the payment. No one discussed or acknowledged that my husband has died. Late fees will be applied to his loan. My stress and attitude tells me not to pay on my husbands modification I do trust Ocwen but it seems have no other choice but to apply for my own modification. I have no idea of the amount of the loan and the interest. Is it possible the loan could be more? I also asked to stop the foreclosure. I was told that is the normal process after 79 days of no payment. I can only repeat to the person I talk to again, how can I keep my home. Your interest and suggestion are helpful, thank you. I cannot afford to pay both, my husbands loan and hire an attorney

James P. Frederick

James P. Frederick

Posted

You need to decide: 1) whether you want to stay in the home, regardless of the costs; 2) whether you can afford to stay in the home or whether it makes more sense to stop all payments for several months and save for another place; 3) if there is another alternative to keep the home. An attorney can help you with these decisions. I understand your financial position, though. It is hard to conduct a cost-benefit analysis without all of the facts.

Posted

I agree with both attorneys here. I do wonder if the lien is valid since they did not include you in the modification loan. I would seek the advice of someone who has done alot of the loan modification/foreclosures issues.

Re-post your question in the real estate section, you'l get more replies there.

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