Interesting Hypothetical (Des, if you're around please chime in)

[last2cents]

This topic came up today because I've recently learned of the untimely death of someone I went to college with. 44 years old with a stroke.

Needless to say, this sparked a conversation with my significant other about the shortness of life which evolved into an estate planning conversation.

When we decided we were serious with each other, but both felt that making it legal could wait, we went to a lawyer, and drew up a batch of paperwork that would ensure he would get my stuff and I would get his stuff in the event that something unfortunate happened to either one of us. (Yes, we also took care of the all the medical POA's and such)

One of those documents was a beneficiary deed for my house.....

Now, here's the question. Since I've discharged the debt in my CH7 (although we're doing a pay and stay at the moment), if I kicked the bucket tomorrow - what would the impact be to my PDH (probable dear husband - we will tie the knot eventually).....

#1 - Would he be liable for the discharged mortgage?
(I don't think he would be, but I could be wrong)

#2 - Would he have to refi a severely underwater house to keep it?
(And can the bank force that??? The debt was discharged.....)

#3 - Would he wind up with a f/c against him if he let it go?

Confused, I am......

[despritfreya]

In response to:

One of those documents was a beneficiary deed for my house.....

Now, here's the question. Since I've discharged the debt in my CH7 (although we're doing a pay and stay at the moment), if I kicked the bucket tomorrow - what would the impact be to my PDH

#1 - Would he be liable for the discharged mortgage?

No, unless he signed on the dotted line and Arizona’s anti deficiency statute did not apply upon foreclosure. You filed bk, he did not. Your discharge would not protect him.

#2 - Would he have to refi a severely underwater house to keep it?

No. So long as payments are made and all other non-monetary defaults (keep property insured, pay taxes) other than the “due on sale” clause are met, lender cannot foreclose in Arizona. The “due on sale” clause (loan matures if title is transferred without consent), is not enforceable in Arizona.

#3 - Would he wind up with a f/c against him if he let it go?

Don’t know. If property is in his name, maybe but I doubt it as the loan is not.

Confused, I am......

Ok Yoda. . . don’t be.

Des.