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  1. #1
    Join Date
    Mar 2019
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    2

    Default Do You Have the Right to Assume a Spouse's Mortgage

    My question involves real estate located in the State of: Oregon

    My wife and I just refinanced our home. The loan was placed in her name because she had the better credit and if my name was on the loan it would have raised our interest rate a half a percentage point. So said our loan broker.

    At the time I asked what would happen if she were to pass before me. Would the loan become due? The broker said that because were were joint tenants and our names are both on the deed, if she passed before me, I could remain in the home and continue making payments. I asked him this on two occasions and both times he assured me I would be fine.

    Is he correct? Or should I buy more life insurance on her?

  2. #2
    Join Date
    Sep 2010
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    18,915

    Default Re: Right to Assume

    Something is not right here. I've never seen (and I'm not sure how it would happen) that your wife would be the only one on the loan with you on the deed. Are you on the deed? The first thing you need to do is fix that so you have a tenancy by the entirety. I'd not trust anything a mortgage broker tells you. It is illegal for them to give you legal advice and they are unqualified to do so.

    The law prohibits most lenders from calling loans in this situation. As long as you continue to pay it, you'll be fine.

  3. #3
    Join Date
    Oct 2006
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    15,210

    Default Re: Right to Assume

    Quote Quoting flyingron
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    Something is not right here. I've never seen (and I'm not sure how it would happen) that your wife would be the only one on the loan with you on the deed. Are you on the deed? The first thing you need to do is fix that so you have a tenancy by the entirety. I'd not trust anything a mortgage broker tells you. It is illegal for them to give you legal advice and they are unqualified to do so.

    It IS advisable to make sure that the deed has been written in such a way that that you both have rights of survivorship. I suspect however that since this was a refinance that you really don't have a problem, but double check it.

    The law prohibits most lenders from calling loans in this situation. As long as you continue to pay it, you'll be fine.

    I agree with this and will add that anyone who inherits a house from a family member is protected in the same way. As long as the mortgage continues to be paid its fine.

  4. #4
    Join Date
    Jan 2011
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    248

    Default Re: Right to Assume

    Quote Quoting flyingron
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    The law prohibits most lenders from calling loans in this situation. As long as you continue to pay it, you'll be fine.
    Bingo. You can read up on the Garn-St. Germain Depository Institutions Act of 1982 for more info, if you don't want to believe what random strangers on the internet tell you.

  5. #5
    Join Date
    Nov 2013
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    6,196

    Default Re: Right to Assume

    Quote Quoting flyingron
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    The first thing you need to do is fix that so you have a tenancy by the entirety.
    In Oregon as in many states, a Tenancy by the Entirety is created if the deed says something like, John and Jane Doe, husband and wife are grantees. The deed does not have to say that it is a Tenancy by the Entirety.

  6. #6
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    Sep 2010
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    18,915

    Default Re: Right to Assume

    Quote Quoting budwad
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    In Oregon as in many states, a Tenancy by the Entirety is created if the deed says something like, John and Jane Doe, husband and wife are grantees. The deed does not have to say that it is a Tenancy by the Entirety.
    Yes, that's the presumption. However if the deed jus says Mrs. Jane Doe, then it is NOT tenancy by the entirety. I have a sinking feeling unless someone went and filed a new deed after the loan closed, that this is exactly how it is. Lenders are a bit reticent to not list all the owners on the note (for good reason). My mother-in-law got caught by this one.

  7. #7
    Join Date
    Jan 2006
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    38,429

    Default Re: Right to Assume

    Quote Quoting flyingron
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    Yes, that's the presumption. However if the deed jus says Mrs. Jane Doe, then it is NOT tenancy by the entirety. I have a sinking feeling unless someone went and filed a new deed after the loan closed, that this is exactly how it is. Lenders are a bit reticent to not list all the owners on the note (for good reason). My mother-in-law got caught by this one.
    Exacttly

    given that the op would have a legal interest in the property if on the deed, it is extremely (like in just not happening) that a lender will make a loan in just one party’s name or at least they would require any Co tenants sign acknowledgments of the lenders rights superseding the rights of the co tenants rights if the lender should need to foreclose on the property. It doesn’t sound like such acknowledgments have been executed

  8. #8
    Join Date
    Mar 2019
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    2

    Default Re: Right to Assume

    Quote Quoting bcr229
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    Bingo. You can read up on the Garn-St. Germain Depository Institutions Act of 1982 for more info, if you don't want to believe what random strangers on the internet tell you.
    I depend on the kindness of strangers. Thank you everyone.

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