Q: What happens to joint mortgage if one spouse dies in Michigan?
If a husband and wife in Michigan jointly own a house and one spouse passes away, what happens if the surviving spouse has enough income to cover the mortgage payments but cannot qualify for the existing mortgage due to loss of income? The mortgage is in both names, there is a little life insurance, but no specific clauses regarding one borrower's death. This is a future consideration, and the mortgage lender has not been contacted yet.
A: If the couple is jointly on the mortgage, the surviving spouse should continue making the payments under the mortgage agreement. Nothing should change based upon the fact pattern as presented. However, if household income has decreased since the death of a spouse, consider a mortgage modification first, before doing anything further.
Thomas. R. Morris and Kenneth V Zichi agree with this answer
A: Once the loan has been made and the mortgage granted, "qualification" for the loan is not an issue, provided that the loan is a standard residential mortgage. Some commercial loans, in contrast, have financial covenants that are an ongoing obligation on the part of the business to continue to qualify for the loan by staying financially strong. If one of the homeowners dies, the mortgage holder is not normally going to sue or foreclose so long as payments continue to be made and other requirements (such as payment of property taxes and insurance) continue to be met.
Kenneth V Zichi agrees with this answer
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