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FHA loan obligation for surving family

by Belinda P.
(Maryland)

If my ex-husband died and had a house insured under FHA and his daughter's name was not on the house could she continue paying the mortgage and keep the house?

=====ANSWER=====

Hello Belinda,

Thank you for stopping by and leaving your question here. I always enjoy meeting new people and helping them get answers to their questions.

You have not given me many details, but I will try my best to answer your question.

First you need to know I'm not able to offer legal advice. You will need to seek professional help for an exact answer that fits with your situation.

However, with the disclaimer out of the way, let me share with you what I think will be the case.

Even though your ex-husbands daughter (she must be your step-daughter) is not on the mortgage, she may be an heir to his estate.

If he re-married and has a surviving spouse, she will become responsible for the mortgage now since she is the next of kin. If he did not marry and his daughter is the natural born heir, then she will be faced with a choice.

The obligation of the mortgage does not go away with the death of the person who signed the mortgage. It gets passed onto the estate in most cases and then the estate becomes liable.

So it gets real sticky, but his daughter may be able to continue the payments and keep the mortgage going. She should be sure and get listed on the deed in some way as the executrix of the estate.

She may also want to get the house refinanced into her name in case their are other heirs to the estate that may lay claim to it.

Again, you must seek legal advice. From the lenders point of view they just want their money. They really don't care where it comes from as long as it's not illegal funds.

Also, his daughter would not be able to get any credit points for the paying the mortgage in his name.

Depending on how old the FHA home loan is, perhaps it can be assumed. However I'm not sure of the exact dates FHA stopped issuing assumable mortgages. Seems to me it was in the late 80's. You would have to read the loan documents.

Hopefully this helps.

Kind Regards,

Jeffrey Ragan

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Getting a FHA Loan After Foreclosure

I cosigned for a home my son lost due to being hospitalized and then laid off. I had bought a new car after co signing for the home. I couldn't pay the house payment and my car payment on my own along with other expenses back then.

My credit is around 720 I kept my bills paid every month never falling behind on anything.

My car and another I had cosigned for are paid off now.

I want to buy a home with a FHA loan. Will I be able to get the loan just being out of foreclosure since March 5, 2009 and my son being out of the house April 5, 2009 as ordered by the judge? I had signed a quit claim deed so he could borrow money from the credit union in a equity loan on the home back then.

=====ANSWER=====

Hello and Welcome;

Thanks for stopping by and asking a question. I'm not sure you will get this answer since you did not click the box to be notified when I answer, but here it is.

FHA requires a 3 year waiting period if you have been through foreclosure. You may want to check out my webpage on FHA Loan Requirements for additional information.

This page also talks about credit requirements which you appear to have met already. You have to have a spotless record since the foreclosure. Since you have a 720 credit scores you have done well and want to keep that up until March of 2012.

Your 3 years will have expired by then and you should qualify for an FHA loan.

Sorry, I wish I had better news for you, but that is the guidelines lenders use and will insist you meet.

In the mean time, keep your bills paid on time and before you know it the 3 years will have passed.

Kind Regards,

Jeffrey Ragan



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Can I Get a HUD Loan?

Can I still qualify for a HUD loan if you are already buying the home? I'm buying a home already but I'm doing it owner financing and I need to get out of that.

=====ANSWER=====

Hello Friend,

Welcome to my website and thank you for looking to me for answers to your questions.

You state that you are buying a house right now with owner financing. You want to know if you can get a HUD Loan or find first time home buyer programs.

First off, HUD is actually the government organization that helps neighborhoods develop and assist with loan guarantees to the banks. HUD stands for Housing and Urban Development.

So HUD and FHA work together to help people like you and I to own homes. FHA was established in 1934 as the Federal Housing Authority. So together they offer loan guarantees so the banks will lend you money on low interest and down payments.

If an FHA loan defaults, HUD then takes it over and offers it for sale on the market. That is why they are called HUD homes. It was a home bought with an FHA loan which the person defaulted on and now HUD will help get it sold again.

So the answer to your question about getting a loan on the house you are already buying, yes you can if you have sufficient credit and equity.

The only way you find that out is to have an appraisal done to determine value. Then you need to know your credit scores to see if you can qualify for a mortgage.

FHA will do the loan providing you can meet the FHA loan requirements.

Please pay a visit to the links provided in this reply for additional information.

I hope you find this helpful.

Best Regards,

Jeffrey Ragan

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