Posted by Rebecca Fair on 4/14/04 3:41pm
Msg #1496

Spousal States

I have found that many signing companies use the term "spousal state" I am a Real Estate Paralegal and have been in Escrow for over 2 years working in both Florida and California. I have never run into this term until I went out on my own as a mobile notary. Can someone please clarify what they are referring to when they say "spousal state" - community property state, homestead state, etc.. Thanks

Reply by Bob-Chicago on 4/15/04 12:07am
Msg #1504

State laws, of course, differ, but generally it means that the spouse of the borrower signs the mortgage, (DOT). RTC, TIL, Itemiztion (and sometimes additional docs as reqd by lender, even though the spouse is not on title and/or is not liable for payments on the loan. Many states give a person's spouse rights in real estate owned solely by the other spouse, especially if the real estate is the principal residence (HOMESTEAD) of the couple. As a NSA, it means that you would have the non-borrowing or non-owning spouse sign only certain documents as designated by the lender. The spouses signature then makes their interest in the property subject to the mortgage.