If I passed away do my children still get my house if I never reaffirmed my loan if I am current and never been late on any payments? 26 Answers as of August 31, 2015

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
LAW OFFICE OF ROBERT I LONG
LAW OFFICE OF ROBERT I LONG | Robert I. Long
I uncertain what you mean by reaffirm a loan. That is normally something that occurs in the course of a bankruptcy. No one "inherits" a loan, just the real property. Of course, once the property is in their names they will need to satisfy the lien that is the mortgage or the mortgagee (lender) will pursue its collateral; i.e., foreclose. They may find it necessary to refinance. Legal ownership and debt are separate things, even if they are closely tied together. This answer assumes you are not married and there are no joint owners of the property.
Answer Applies to: California
Replied: 11/18/2014
Law Office of Susan G. Taylor
Law Office of Susan G. Taylor | Susan G. Taylor
That would be a yes.
Answer Applies to: Texas
Replied: 8/31/2015
Stephens Gourley & Bywater | David A. Stephens
Yes, unless someone else is on title or your will says differently.
Answer Applies to: Nevada
Replied: 11/5/2014
O'Keefe Legal Services, L.L.C.
O'Keefe Legal Services, L.L.C. | Sean P. O'Keefe
In Maryland, most likely yes. Why would you reaffirm your loan; is there a bankruptcy involved?
Answer Applies to: Maryland
Replied: 11/5/2014
Law Ofices of Edwin K. Niles | Edwin K. Niles
The loan has nothing to do with title. Under Cal. law, the property would go to your closest kin, presumably your kids. You could save your estate a LOT of money by having a trust. We suggest that you talk to an estate lawyer.
Answer Applies to: California
Replied: 11/4/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    When you die, state laws or your will determines how your property is distributed to your heirs. Your mortgage company does not control the ownership of real estate unless & until payments get behind and a foreclosure takes place. So assuming your heirs continue to make the mortgage payments, they will get title to the property with no problems.
    Answer Applies to: Nevada
    Replied: 11/4/2014
    Minor, Bandonis and Haggerty, P.C.
    Minor, Bandonis and Haggerty, P.C. | Brian Haggerty
    I'm not sure what "reaffirming" a loan is. Whoever takes your estate (your children, if you are not married and do not have a will) will get your house subject to their need to continue to make the loan payments. "Children" plural means that the house should be sold in probate. The loan will be paid then. But think of this: what's the house worth, $150K, $200K, or more? Isn't it worth getting some estate planning done?
    Answer Applies to: Oregon
    Replied: 11/4/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    They can get title..... they may have to refinance the loan. Never had this come up before. I know very little about estate planning. You should see a lawyer knowledgeable about estate planning. I do have clients who inherited property and simply kept paying the loan. I think it may depend on your loan docs.
    Answer Applies to: California
    Replied: 11/4/2014
    James Law Group
    James Law Group | Christine James
    If you own the home upon your death, yes. The question is do you still own the home if you filed bankruptcy. That is a question for your BK attorney and/or your lender.
    Answer Applies to: California
    Replied: 11/4/2014
    Marc S. Stern
    Marc S. Stern | Marc S. Stern
    Yes, however, they still need to pay off the mortgage.
    Answer Applies to: Washington
    Replied: 11/4/2014
    GARCIA & GONZALES, P.C.
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    That would be a yes.
    Answer Applies to: Colorado
    Replied: 8/31/2015
    Charles M. Schiff, Attorney at Law
    Charles M. Schiff, Attorney at Law | Charles M. Schiff
    Your estate would own the house subject to the existing loan. If the property were passed on to your heirs, those heirs would also receive the house subject to the loan. In many estates it is necessary to sell the real estate to pay the creditors and the costs of estate administration.
    Answer Applies to: Minnesota
    Replied: 11/4/2014
    Law Offices of George H. Shers | George H. Shers
    In California, your portion of the house would go to your spouse and if he/she is already dead it would pass to your children. But your assets would have to go through probate for the title to be changed to them. Also, most loan have a provision that they become all due and payable upon the death of the borrower or change of ownership [including putting the title into a trust to avoid probate]. You need to check with your bank/lender and get their approval in writing to allow title to change, but they probably will say no. You also have to consider want happens when all of your children inherit the house. Some may want to sell and other to keep it, some will want to move in and pay no rent to the others, etc. If you do not specify what will happen to the house then they may end up fighting over it. There are all sorts of arrangements you can make to lessen the likelihood of arguments among them. You might want to leave behind some cash or assets easily converted into cash to pay the mortgage until title passes. It would be worthwhile to spend several hundred dollars to see a trust and estate/probate attorney to figure out how best to plan what to do. You should also read the Nolo Press books on estates and trusts and probate to gain some information on the subjects so that you are better able to understand what the attorney will tell you and to prepare your questions of them.
    Answer Applies to: California
    Replied: 11/4/2014
    Gates' Law, PLLC | Thomas E. Gates
    You can leave your children your home, if you have no spouse. If spouse, only half can be given away. An outstanding mortgage would have to be paid off. Your mortgage documents will specify whether they can assume your loan or need to refinance.
    Answer Applies to: Washington
    Replied: 11/4/2014
    Law Office Of Victor Waid
    Law Office Of Victor Waid | Victor Waid
    That would be a yes.
    Answer Applies to: California
    Replied: 8/31/2015
    R. Steven Chambers PLLC | R. Steven Chambers PLLC
    Yes but the mortgage will have to be paid.
    Answer Applies to: Utah
    Replied: 11/4/2014
    Bunch & Brock, Attorneys-at-Law
    Bunch & Brock, Attorneys-at-Law | W. Thomas Bunch II
    Yes, if your home is still deeded in your name and you are single (the only owner). Upon your death (again assuming you are not married at the time), your home will pass to your children if you die without a Last Will. If you have a Last Will, it will still be a part of your probate estate, but it will go to whoever you designate in the Last Will.
    Answer Applies to: Kentucky
    Replied: 11/4/2014
    Durham Jones & Pinegar | Erven Nelson
    That depends on a lot of factors. Since you mentioned that you have not reaffirmed the loan, I assume that you have filed for bankruptcy. So long as you are not in default under the loan, there would be no reason for the bank to seek to foreclose on the loan. Technically, filing a bankruptcy is a default under most loan agreements. But, most courts will not allow banks to foreclose so long as you are making your payments. You should talk to your bankruptcy lawyer. Also, you should do some estate planning if you have not done so. I recommend looking into a trust with your children as the beneficiaries. You also need to let them know that payments will need to be made to the bank even after you die until the loan ahs been paid off in full.
    Answer Applies to: Nevada
    Replied: 11/4/2014
    Ashcraft & Ashcraft, Ltd.
    Ashcraft & Ashcraft, Ltd. | Randall C. Romei
    The house will pass to heir(s) in accordance with the terms of your Will, if any. If you do not have a Will, the house will pass according to the statute on descent and distribution. A living spouse will receive an interest (50%) and the children will divide the remainder. Any mortgage securing the property will continue to encumber the property. Most mortgages have a due on sale clause that will allow the lender to force the sale of the house or refinance of the mortgage in order to pay off the mortgage when the original mortgagee no longer owns the house. When the lender discovers that you passed away, the lender will require the mortgage to be paid off. The heirs will have to make necessary arrangements or lose the house.
    Answer Applies to: Illinois
    Replied: 11/4/2014
    Sebby Law Office
    Sebby Law Office | Jayne Sebby
    I'm not sure what you mean by "reaffirming" a loan. Generally, a loan lasts until the loan is completely repaid. However, if you still owe money on the loan on your house at the time of your death, that loan must be repaid first, before your children can inherit. If you have no other assets, your executor may have to sell the house to pay off the loan. Your children would then only receive whatever is left of the selling price.
    Answer Applies to: Nebraska
    Replied: 11/4/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    Yes, as long as you are on the deed then they get the house. Reaffirmation only affects the liability of the debt, so you are not personally liable for the debt after bankruptcy.
    Answer Applies to: New York
    Replied: 11/4/2014
    Law Office of Pamela Braynon | Pamela Y. Braynon
    Actually you're talking apples and oranges. Loans or mortgages on real property has nothing to do with the heirs of the decedent. If you leave no will, your heirs, i.e. your children, will inherit the house regardless of the mortgage on the home. The home was the collateral for receiving the loan. The loan has to here paid regardless if you are living or deceased. The loan is on the home not on the person. Your heirs can make arrangements to repay the loan with the mortgage company or who ever the lender may be.
    Answer Applies to: Florida
    Replied: 11/4/2014
    Southern Michigan Bankruptcy Center | Craig Jackson
    Even if you did not reaffirm the mortgage in bankruptcy, as long as the mortgage continues to get paid after your death, the lender most likely won't raise any issues.
    Answer Applies to: Michigan
    Replied: 11/4/2014
Click to View More Answers:
12 3 4 5 Free Legal QuestionsConnect with a local attorney