Will being a beneficiary on my parent's mortgage affect me? 15 Answers as of July 04, 2013

My parents are filing chapter 7 and said they will loose their condo which I am a beneficiary on. Will this affect my credit score? What can I do?

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Jackson White, PC
Jackson White, PC | Spencer Hale
Your credit will not be affected, just your inheritance.
Answer Applies to: Arizona
Replied: 7/15/2011
Law Office of Maureen O' Malley
Law Office of Maureen O' Malley | Maureen O'Malley
Beneficiary of what? Is it held in trust? Unless you owe money on it, it won't affect you.
Answer Applies to: Virginia
Replied: 7/4/2013
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
If you are on a loan and there is a default it will affect your credit rating. If you don't have a loan but are merely a beneficiary there shouldn't be any negative credit reporting in the property is foreclosed.
Answer Applies to: California
Replied: 7/11/2011
Burnham & Associates
Burnham & Associates | Stephanie K. Burnham
Are you a co-signer on the mortgage and note? If you are not liable on the debt, then it will not effect your credit score.
Answer Applies to: New Hampshire
Replied: 7/7/2011
Breckenridge and Walton
Breckenridge and Walton | Alan D. Walton
No problem. Being a beneficiary is a based on a future event and does not have credit issues. Removing you as beneficiary likewise should have no issues.
Answer Applies to: Michigan
Replied: 7/7/2011
    Law Office of Xochitl Anita Quezada
    Law Office of Xochitl Anita Quezada | Xochitl Anita Quezada
    As long as your name is not on the loan then you are fine. The title is irrelevant.
    Answer Applies to: California
    Replied: 7/6/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    You cannot be a beneficiary of a mortgage (which is a debt) and you cannot be a beneficiary of a condo. You might be a beneficiary of your parents' will and maybe that is what you mean. If you are, then you are not entitled to anything until your parents die. If you are not an owner of the condo (your name is not on the deed) and you are not a debtor on the mortgage then your credit will not be affected by the bankruptcy or the foreclosure.
    Answer Applies to: California
    Replied: 7/6/2011
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    Not if all you are is a beneficiary. I would certainly check, or have their lawyer check this, because it is extremely unusual for someone to be a beneficiary on a deed. More often it will name mom, dad and you with joint rights of survivorship, meaning the last to be alive gets it. If this is the case, you want to be sure you are not on the mortgage, or they could come after you for any deficiency balance on the mortgage. Good luck to you and your folks!
    Answer Applies to: Michigan
    Replied: 7/6/2011
    Evan M. Altman Attorney at Law
    Evan M. Altman Attorney at Law | Evan M. Altman
    If the condo is not titled in your name then it will not affect your credit score.
    Answer Applies to: Georgia
    Replied: 7/4/2013
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    I'm not understanding your question as there is no such thing as being a beneficiary on a mortgage. Are you a co-signer or co-owner? You may want to rewrite your question.
    Answer Applies to: Georgia
    Replied: 7/4/2013
    Theodore N. Stapleton, PC
    Theodore N. Stapleton, PC | Theodore N. Stapleton
    It depends on what kind of beneficiary you are which requires a review of the documentation.
    Answer Applies to: Georgia
    Replied: 7/4/2013
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    A "beneficiary" on a mortgage is the one who can foreclose.... I don't think that is you. If are a beneficiary under their will, there is are no consequences for you. In fact as long as you did not sign on mortgage, even if your name is on the deed, there are no consequences to you.
    Answer Applies to: California
    Replied: 7/6/2011
    Law Office of Eric Ridley
    Law Office of Eric Ridley | Eric Ridley
    I'm not sure what you mean by being a beneficiary on a condominium. If you mean that you were intended to receive it in their estate, then your credit will be unaffected.
    Answer Applies to: California
    Replied: 7/6/2011
    Tucker Legal Clinic
    Tucker Legal Clinic | Samuel Tucker
    A beneficiary on a mortgage (deed of trust) is usually the lender. If this is the case, the Chapter 7 cuts off your ability to collect the debt from parents. There should be no problem with your credit score. On the other hand, if you are holder of an equitable of legal title in the condo, or if you are in some way a co-signer or guarantor on the note there is a new problem. You most likely have liability and possibly some credit report exposure. You should be clear as to your position regarding the condo title and mortgage. The term "beneficiary" in this context is unclear.
    Answer Applies to: Mississippi
    Replied: 7/6/2011
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