How can my husband get out of a mortgage on his mom's house?

[napayshni65]

My mother-in-law talked my husband into refinancing her house to pay off her credit card and bills. The loan is in his name only but the title is in her name and his name. He can no longer afford to pay this, her taxes and homeowner's insurance as we are now married and have to pay rent on our own house and all of our own bills. He owes more than what the house could probably be sold for. She would never consent to selling the house. She resents me for taking him away because he lived there until the age of 49 and was made to feel guilty and paid for almost everything. Moving into the house is not an option. She is only 70 years old and he still owes 25 years on the house. He also has his own credit card bills he had to use to purchase all the appliances for her house when they broke and furniture. Could I be responsible for this debt if something happens to him?
Is there any way to get out of this mortgage without ruining his credit? Would bankruptcy be an option? We are always broke because of this mortgage....please advise.

[kendell]

Short answer to your credit is no. Long answer is no and his mother took him for a ride.

If it is too much for you to pay, stop paying and let the bank take it. His credit will be shot but he might as well bite the bullet now.

And how does bankruptcy not ruin his credit?

[wethrby]

Honey, if he was living with his mommy until he was 49 years old you can just forget it. He is paying for her house, no if ands or buts about it. If he files bankruptcy mommy loses her home, and guess where she is moving? You guessed it! She is moving in with you! Forever.

The umbilical cord is still attached firmly and you will not be able to change that. He is a Mommy boy and always will be, you may as well accept it.

[sherborne16]

So, he signed for his mother without thinking through every possibility.

And you married him, without discussing the fact that either you moved in with him or he move in with you, and you wouldn't be able to contribute to a nicer place.

If he walks away from the debt HE SIGNED, he creates two problems. One, his credit is trashed and two, his mother is foreclosed on. Clearly she was spending more than her retirement income. I know you don't care if she's homeless, but surely he does. You can expect she'll move in with you or that he'll pick up the cost of paying her rent--though with a trashed credit history, he may have to move her into your home for a while.

[akule76]

It is unusal for the title to not match the loan in terms of ownership. That's not really your question but makes me wonder if all of the details you've shared are accurate (not saying you've muddled them intentionally, just wondering if there's some confusion somewhere).

Because his name is on the loan, he's responsible for repaying it. Any default on the loan will affect his credit. Bankruptcy may be an option but would of course affect his credit. Also, given that he doesn't live in the house, it may not be protected in bankruptcy proceedings.

Your name is not on the loan so you will not be responsible for the debt. However, upon his death, his estate will be responsible for the loan and any amount you may have received from an estate would be applied first to his debt.

As far as her consent to selling the house, if she's not paying for it, then her objections carry only so much weight. She wouldn't have to consent to the house going into foreclosure or if he was not allowed to keep it as part of bankruptcy proceedings. Is it possible to rent a room or two in the home? She may be eligible for subsidies or assistance if she really doesn't have means to pay for her own housing.

It sounds like if you are both serious about getting out from under this mortgage, you should consult an attorney. At a minimum, clear up any confusion over ownership. The bank would not be happy to learn the title does not match the mortgage - they may even require the deed be corrected or the mortgage be paid in full.