If I'm the Primary Borrower on a FHA loan, what are my rights? 22 Answers as of May 17, 2013

I'm the Primary Borrower on a FHA loan and my Co Borrower on the account is telling me when she dies, she is giving the house to someone who is not on the loan. Can she do that? I did pay the down payment on house and pay the house payment every month.

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James Oberholtzer, Attorney at Law
James Oberholtzer, Attorney at Law | James Oberholtzer
Is the co-borrower's name on the title? Are you married? If so, you will have a problem removing her. Otherwise, if you have paid all the money, her ownership is a gift if anything. You may be able to have her name removed and then she will have nothing to pass on at her death.
Answer Applies to: Oregon
Replied: 5/17/2013
Goldsmith & Guymon
Goldsmith & Guymon | Dara Goldsmith
You do not address how title to the property is held. Without that your question cannot be answered.
Answer Applies to: Nevada
Replied: 5/16/2013
Law Office of Pamela Braynon | Pamela Y. Braynon
We're talking apples and oranges here. The loan is totally separate from ownership in the house. The house is used as collateral for the home. If the loan does not get paid (no matter who is the primary borrower or co-borrower), the house will be foreclosed on. If the mortgagor cannot recover the monies lent on the home it will be taken away. So there are no primary or co-borrower "rights" to the home if that is what you're asking. Ownership of the home is who has title to the house. That would be the person or persons on the deed. It could be that the two of you are on the deed as tenants in common or with rights to survivorship. This space is to small to get into a full explanation. You would have to see an attorney familiar with real estate.
Answer Applies to: Florida
Replied: 5/16/2013
Law Offices of George H. Shers | George H. Shers
She can do whatever she wants with her portion of the house but it is unclear from your question what portion she does own.
Answer Applies to: California
Replied: 5/16/2013
The Law Office of Kelvin Green | Kelvin Green
It's really not a matter of who the primary borrower is but how the title of Property is done. The law will use the title to determine successor interests.
Answer Applies to: California
Replied: 5/16/2013
    Peters Law, PLLC
    Peters Law, PLLC | Mark T. Peters, Sr.
    But who owns the house? Both of you or just her? The owner gets to bequeath. If you are joint tenants, she can try and give her half away, but when she dies it belongs to you.
    Answer Applies to: Idaho
    Replied: 5/16/2013
    Gates' Law, PLLC | Thomas E. Gates
    Right to title and requirement to pay loan are two different issues. If you live in a community property state, she has the right to dispose of her one-half of the communal estate. Thus, she can give her interest in the home to someone else. Because you are the buyer on the loan, you would have to continue making payments.
    Answer Applies to: Washington
    Replied: 5/16/2013
    Charles M. Schiff, Attorney at Law
    Charles M. Schiff, Attorney at Law | Charles M. Schiff
    It depends upon the property title, not the name on the mortgage. If you and the co-borrower are co-owners of the property she can leave her interest to another party. Any interest she leaves to a third-party will be subject to the mortgage balance at that time. This does not however help you with respect to your down payment and mortgage payments made. You should iron out this issue before a death occurs.
    Answer Applies to: Minnesota
    Replied: 5/16/2013
    Neal M. Rimer, Esquire
    Neal M. Rimer, Esquire | Neal M. Rimer
    A person who is not on title has no rights to distribute the house on their death. Unless your co-borrower is on title, they have no rights to ownership of the house. A borrower is not an owner. You need to check on who is on TITLE to the house. If your co-borrower is also on title, then you need to work this out while your co-borrower is alive. A person signing on a loan, without any other investment, has not put any equity into the property. Sometimes, lenders work out an equity share to act as a guarantor of a loan. This is and should be in writing. Right now you need to check title and then you can move on from there with what you need to do. Good luck!
    Answer Applies to: California
    Replied: 5/16/2013
    The Krone Law Firm, LLC | Norman B. Krone
    Who owns the house is the primary question that needs to be answered by you before your question can be responded to.
    Answer Applies to: Florida
    Replied: 5/16/2013
    James T. Weiner & Associates, P.C.
    James T. Weiner & Associates, P.C. | James T. Weiner
    It depends upon how title is held.. please contact an attorney.
    Answer Applies to: Michigan
    Replied: 5/16/2013
    Stephens Gourley & Bywater | David A. Stephens
    What the co-borrower can do with the house on her death depends on how the title to the house is held and what agreement there was, if any, as to what would happen to the house when one owner passed away.
    Answer Applies to: Nevada
    Replied: 5/16/2013
    Law Office Of Victor Waid
    Law Office Of Victor Waid | Victor Waid
    Are you on title? Is title in joint tenancy? Then co borrower cannot give her interest to anyone.
    Answer Applies to: California
    Replied: 5/16/2013
    Frederick & Frederick PLC | James P Frederick
    Is the "co-borrower" on the title? If so, then she can leave her share to someone else. If she is not on the title, she has no rights.
    Answer Applies to: Michigan
    Replied: 5/16/2013
    Arthur H. Geffen, P.C.
    Arthur H. Geffen, P.C. | Arthur Geffen
    Being a borrower and/or a co borrower does not necessarily mean that you have an ownership interest in the home. IF the two of you are not married and the title to the home is in both names and you both are co borrowers, then she can do with her half what she wants. However, anybody that takes her share will take her share of the debt as well. I would try to work on an agreement and put it in writing as to what happens when one of you die. If you are married, the survivor gets a life estate in the house if there is no will and maybe even more. Do yourself a favor and contact a local probate and estate planning lawyer for some guidance.
    Answer Applies to: Texas
    Replied: 5/16/2013
    WARM SPRINGS LAW GROUP | Elliott D. Yug
    That will depend on how the house is titled. Is it titled as tenants in common or is it joint tenants?
    Answer Applies to: Nevada
    Replied: 5/16/2013
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    I do not fully understand your question, nor does it appear that you understand the legalities involved. The ownership of the house is determined by the title not who signed the mortgage clearly you need to see an attorney to have explained to you your rights and obligations.
    Answer Applies to: Michigan
    Replied: 5/16/2013
    Law Office of Patricia A. Simmons
    Law Office of Patricia A. Simmons | Patrica A Simmons
    Is the co-borrower on the deed, and if so, how is title held to the property? If held as joint tenants with right of survivorship, her interest terminate upon her death and she will have nothing to pass at the time of her death. If she is a tenant in common, she may bequeath her interest which would need to go through probate, unless she has a living trust. If her name is not on title, she is not considered an owner of the property. Contact a real estate or probate attorney to discuss this matter is detail to determine and preserve your rights.
    Answer Applies to: California
    Replied: 5/16/2013
    Mains Law Office
    Mains Law Office | Julie Mains
    In California, it does not matter who is on the loan so much as who is on the deed. You need to review the deed to the property to determine whether she has a divided share that she can pass via an estate to someone.
    Answer Applies to: California
    Replied: 5/16/2013
    James Law Group
    James Law Group | Christine James
    The loan has nothing to do with it. Title controls. If the person has title to any portion of the property, he/or she can give it to whomever he/she wants. That said, you can always buy out the person who that share is given to if you are concerned about losing the home. Consider some life insurance on that person so you have the cash to do that if you want to/can.
    Answer Applies to: California
    Replied: 5/16/2013
    Reger Rizzo & Darnall LLP | Kathleen DeLacy
    If you are not listed on the deed she can will it to whomever she pleases.
    Answer Applies to: Delaware
    Replied: 5/16/2013
    Attorney At Law | James G. Maguire
    She can leave the house to anyone she wants, but the mortgage will remain on the house.
    Answer Applies to: Louisiana
    Replied: 5/16/2013
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