Legal Question in Real Estate Law in New Jersey

Re: co owners

I AGREE WITH DALE, THAT AS LONG AS THE MORTGAGE IS BEING PAID, YOU SHOULD HAVE NO PROBLEMS WITH THE LENDER. IF YOUR GRANDMOTHER'S ESTATE IS STILL IN PROBATE, YOU SHOULD CONSIDER PETITIONING THE SURROGATE'S COURT (SUPERIOR COURT, PROBATE PART) IN THE COUNTY WHERE THE WILL WAS PROBATED OR HER ESTATE IS BEING ADMINISTERED. YOU NEED TO CLEAR THE TITLE TO YOUR HOUSE, OR YOU COULD HAVE UNINTENDED CO-OWNERS, WHO COULD CAUSE YOU PROBLEMS. YOU NEED TO FILE AN ORDER TO SHOW CAUSE, EXPLAINING THAT SHE WAS MERELY AN ACCOMODATION OWNER, NEVER REALLY INTENDED TO HAVE OWNERSHIP, BUT SHE HAD TO BE ON THE DEED TO GET THE MORTGAGE (NOT JUST ACT AS A GUARANTOR). ALTERNATIVELY, AND WITHOUT SEEING THE DEED, THE ANSWER MAY BE SIMPLER DEPENDING ON HOW THE TITLE READS. IF THE TITLE READS "JOINT TENANTS WITH RIGHT OF SURVIVORSHIP" YOU SHOULD HAVE NO PROBLEM, AS BY SURVIVING HER YOU GET FULL OWNERSHIP BY OPERATION OF LAW. ON THE OTHER HAND, IF THE TITLE READS TENANTS IN COMMON" OR IS BLANK (NO DESCRIPTION OF HOW THE OWNERSHIP IS HELD) HER ESTATE HAS AN INTEREST AND THIS MUST BE DEALT WITH THROUGH THE COURTS. WHILE I AM RECLUCTANT TO MENTION THIS, IT IS POSSIBLE THAT THE ATTORNEY HANDLING THE MATTER MAY HAVE COMMITTED MALPRACTICE IN HOW HE WROTE THE DEED. SEVERAL OTHER POINTS: WHO PAID THE DOWN PAYMENT, CLOSING COSTS, ETC. IF ANY FUNDS WERE PAID OR ADVANCED BY YOUR GRANDMOTHER, SEPARATE FROM THE REGULAR MORTGAGE PAYMENTS, HER ESTATE MAY HAVE A LEGITIMATE INTEREST IN THE PROPERTY, UNLESS THE PAYMENTS WERE A LOAN AND YOU REPAID THEM, OR SHE INTENDED A GIFT (DIFFICULT TO PROVE UNLESS YOU HAVE SOMETHING IN WRITING). IF IT IS DETERMINED SHE IS A LEGITIMATE OWNER, YOU MAY HAVE TO BUY-OUT HER INTEREST IN THE HOUSE TO PROTECT IT, UNLESS HER WILL LEFT IT TO YOU. FINALLY, YOU ARE OBLIGATED TO INFORM THE LENDER OF HER DEATH. IF YOU CAN ESTABLISH YOU WERE MAKING ALL THE PAYMENTS AND YOUR CREDIT HAS IMPROVED, THEY WILL PROBABLY ALLOW YOU TO CONTINUE THE MORTGAGE WITH NO NEW CO-SIGNER. IF YOU NEED MORE HELP, CONTACT ME DIRECTLY.

Re: co owners

If you are current on your mortgage payments the bank cannot take your house simply because a co-signer has died. However, since she was aco-signer of the mortgage, it was necessary to include your grandmother on the Deed so now the Executor has a duty to see that her "share" of the value of the house is paid to her beneficiaries. On the other hand, since the cosigning was merely an accommodation and you made all the payments, it's highly likely that a judge will rule that your grandmother did not have any real ownership of the property. This may cost several thousand dollars to win in court which is why it is wise to spend a few hundred dollars on a real estate attorney when obtaaining a mortgage loan to purchase or refinance an existing mortgage on a house.