Real Estate/Sudden death/Recent divorce - Need fast answers, please.

[brittbritt22]

I cannot afford a lawyer, and this seems like a simple question.

My father died this week. His divorce from my stepmother became final in June. In the divorce decree, my father got sole possession of the home and sole responsibility to make payments; however, he did not get around to re-financing the home and/or taking my stepmother's name off of the mortgage. My stepmother is still listed as the primary on the mortgage. My dad has homeowner's insurance, but no life insurance, and I've heard that since his death was accidental and occurred in the home, the homeowner's insurance will pay off the mortgage on the house, leaving me with the home to do what I need to do.

My question is this: since he is dead but they are divorced, what right does she have to the home? Will the homeowner's insurance cover the mortgage if she is still listed as primary? Does the house even go to me if her name is on the mortgage? Does she have rights to the belongings inside? According to the divorce decree she has taken everything out that she was entitled to.

This is a very confusing time. I have not had to deal with an immediate death as an adult before, and I need to know what I'm doing. I thank you in advance for your fast response.

 

[jharris352]

You aren't in a bad position but you suffer from bad information. I'm sorry to hear about the passing of your Father. His accidental death whether inside the home or not has nothing to do with the homeowner's insurance. Just in case, check with the insurance agent, but I have dealt with real estate law and insurance for years and this is one of the primary myth's people believe about homeowner's insurance and PMI. Neither insure the death of the homeowner regardless of where or how he died.

So to the divorce. Keep his ex-wife away from the house and the belongings inside the house. Neither belong to her even in his death. If the divorce is final she has gotten her equitable share of the property and his death is irrelevant to her or the property division.

She does have a right to protect her credit. One's name on the mortgage does not give them any right to the house itself. Her name on the title was probably removed via quit claim deed pursuant to the divorce. You need to keep making the mortgage payments. Did your father have a will? Who is the executor of his estate? If you do not make the mortgage payments it will harm the ex-wife's credit and she will have standing to try to take and sell the house to protect her credit. She still will not get the money from the sale but she will be able to force the sale.

People are quick to say they can't afford an attorney. An attorney in this matter would not be that expensive and can be paid through the assets of the estate. It might be a good idea to consult one. If your father had a will there are probate rules, if he did not there are intestate rules. Either way its best to have an attorney that can be paid through the assets of the estate.

Summary:

1. Homeowner's insurance is irrelevant to your situation.
2. You still have a mortgage on the house, pay it through the assets of the estate or you will give the ex cause to intervene.
3. The ex has no claim on the house or assets if you are correct about the divorce.
4. You will have to pay the mortgage or sell the property.


I hope that answers your questions.