May
26
if a home owner passes away can the estate try to sell the house if there is a co-signer on the title?
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a home owner passed away and there is a co-signer on the property. I would like to know if the estate can take the co-signer to court if the co-signer does not want to sell the property because there were outstanding arrears on the mortgage that the co-signer had paid for. How do you buy out the estate if this is possible?
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6 Comments
May 27th, 2010 at 3:52 am
it depends on how the title is held. if the title is held in tenants by the entirety the estate has to buy it from the other party or vice versa I beleive the best option for all parties is to SEE A LAWYER!!!!!!
May 27th, 2010 at 6:19 am
It really depends if the property went into probate or not. If it did it can change hands regardless but it may not have. If the “co-signer” is actually partial owner than it is possible they can not but it depends on the state. Some states require verbiage on the deed that state “with rights of survivorship” meaning if one survives the other it reverts the the survivor. If it is one of those states and that is not on the mortgage documents in the vesting than it can go to the estate. Since it varies widely depending on the state, if it is being contested it is best for the estate to open a probate and the surviving owner to get an attorney. That is unless no one is contesting who it goes to. No sure which side you are on but unfortunately an attorney is probably necessary. Also if there was a living will that will be a big indication of who might own the property, also that would mean no probate. If the co-owner does not like the living will or agree with it, it would have to be contested in court.
May 30th, 2010 at 2:40 pm
Please rephrase question so that you can articulate how the title is currently held. Who are the owners of the property. Are there other owners other than the deceased party?
You use phrase “co-signer” which sounds like someone co signed a mortgage. That does not necessarily mean that party has an ownership interest in the real estate.
If there is a mortgage on property the mortgage will be paid off from the sale proceeds before anyone else gets any money.
June 3rd, 2010 at 1:15 am
it is all about the title. If titled tenants in common you own 1/2 interest. If it was title with rights of survivor-ship then you own all now. You need an atty to read the vesting to explain it to you. It is in the title work on the property. There are many ways to vest some one on title but those are the most common
I am a mortgage banker in TN
June 4th, 2010 at 10:08 am
It appears as if the person that co-signed is a co-signer on a mortgage. Normally that phrase is used when a mortgage is obtained.
Now holding title to a property is different. Depending on how title is held after the person deceased will depend on who actually own the house.
If this is the sole property that the deceased person had it might not have to go to probate court, however, I would contact a probate attorney to get a legal opinion as to if the property has to go to probate. If the title deed was properly executed and give title to the survivor.
Normally the initial contact with an attorney there is no charge.
In order for you to buy a person out,both of you must be on the title deed. If the both of you are not on the deed then this is a purchase from the person that is on the deed to yourself.
You may buy out a person that is on a deed with another person. You have to find out what the other person will want for you to buy him out.
Get a signed agreement as to what amount of money this person will take to sell his portion of the property.
At that time you would want to find an mortgage banker/broker to obtain a mortgage loan on the property to get enough money to buy this person out of the property.
The mortgage banker/broker will walk you through the stages you will need to get the mortgage loan and have the title deed transferred to you through a local title company and an escrow closing agent.
I hope this has been of some use to you, good luck.
“FIGHT ON”
June 6th, 2010 at 3:14 am
A “co-signer” is the same as “co-borrower”, so in effect, they would also be a “co-owner”, requiring their signature to sell.
When acquiring a loan/mortgage, the lender does not care “who” pays the mortgage, as long as somebody does. It is similar to a lease agreement for a home that 4 student might rent. The lease is usually written to reflect the “entire monthly rent” to be paid is the responsibility of EACH of the renters, so if one or two renters skip out, the remaining renters are responsible to make sure the “total” amount is paid, rather than just “their share”.