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MissKathleen | In Tennessee, if a husband dies, is his widow entitled to have the mortgage paid off automatically? |
I heard there is a little known old law in Tennessee whereby the mortgage is paid off automatically if the husband dies. Anyone familiar with this law? |
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Trouble
|
No, there is no such law that the surviving spouse would be entitled to have the mortgage paid off automatically.
There could be a personal mortgage insurance policy, in which if either spouse dies the mortgage would be paid off via the insurance policy.
There could also be a life insurance policy, in which the surviving spouse would get enough $$ to pay off the mortgage.
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estielmo
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Such a law doesn't exist, you buy life insurance. |
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godged
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No. Doesn't happen. Who would secure this paper? The state of Tennessee? Any elected official that expected lenders or tax payers to take a significant loss on a secured loan due to death of a spouse wouldn't be in an elected position for more than one term. I'm sure if there was such a law, it has been repealed. That is what life insurance and such are for. |
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reenzz
 |
If that was the case..everyone in America would be moving to Tennessee.
Bottom line...no such law exists unless you have mortgage insurance. |
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Classy Granny
 |
Untrue. For that to happen you would have had to purchase insurance. |
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organizeyourbiz
 |
That would be wonderful if it did. Just because someone dies, it NEVER pays off the loan.
No one in their right mind would pass a law like this. |
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Wendy S
 |
My firs thought was that if that were true there would be a huge influx of new residents to Tennessee, and many, many, many men would be dying mysterious deaths there, too. ;)
I am not a lawyer, but I did find something in my research that probably started this rumor. There was a case (cited below) where a man divided his estate among his wife and son, except that his mortgaged home was left just to his wife. He also directed that any of his debts be paid off before anything was disbursed.
To make a long story short the courts decided that the mortgage should be paid before the estate was divided, which in reality gave the wife's estate a larger portion of the husband's estate.
So it's not that the debt disappears. And if someone wrote their will differently perhaps it would not be of issue at all.
Darn. Tennessee was looking mighty good there for a minute! :) |
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amy
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Here in the UK it is - this happened when my mother died.
I don't think it would differ globally to be fair. |
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I know...
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Check out this site. I have never heard of it though. |
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