Q: How can my wife take over the home mortgage if I die unexpectedly?

A: Under federal law, when a home loan borrower dies and the house is inherited by a family member, such as a spouse, the lender may not call a loan due or force the family member to assume the loan. All your wife will need to do is notify the lender that you have passed and that she has inherited the property. The paperwork to prove death is a death certificate, of course. The paperwork to prove inheritance varies, depending on how title was held. Your wife will most likely hire an attorney to help with the administration of your estate and can help with this.

A: The good news is that federal law offers strong protections for your wife. Even if your spouse isn't on the mortgage, federal law provides specific protections allowing her to assume the mortgage and keep your home, as long as she inherits the property and can afford to make the payments Bankrate. Your wife can take over the existing mortgage rather than having to pay off the full balance immediately, but she'll need to provide proof of financial ability and creditworthiness to the mortgage company Quicken Loans. This process, called mortgage assumption, is your wife's legal right as a surviving spouse.

First, make sure you create a will that clearly designates your wife as the beneficiary of your property. Without a will, your state's intestate succession laws will determine which family members inherit your house, which might complicate matters Upsolve. You should also add your wife to the property deed now, which would allow her to automatically inherit full ownership of the home through "right of survivorship" without going through probate. Consider designating her as the executor of your estate as well, giving her legal authority to handle financial matters.

Your life insurance policy is an excellent safety net, but make sure the coverage amount is sufficient to pay off the remaining mortgage balance. When you pass away, having adequate life insurance allows your beneficiary to use those funds to pay off the remaining loan if they choose CNBC. Additionally, you should prepare a folder with all important mortgage documents, contact information for your mortgage servicer, and details about your life insurance policy. Make sure your wife knows where this information is located and instruct her to contact the mortgage servicer immediately when you pass (typically within 30 days) to begin the assumption process.