Posted by Patti Corcoran on 4/8/10 7:52pm
What constitutes a non-borrowing spopuse?
WA is a spousal state. Does that automatically make a spouse who is not on the original deed a non-borrowing spouse? Did a quick claim need to be filed?
I already know what to do on tomorrow's signing but I couldn't find concrete evidence in my state law primer. Many thanks.
Reply by Julie/MI on 4/8/10 7:56pm
Probate law usually governs this
No QCD is required at least in my state.
For example, I was never on title to our home, when dh refi in 2002, I had to sign the "dower docs" (notary came with a wheeled briefcase and I knew I was in trouble as I had to hurry up and close loans...save the rest of that story for another time)
This falls into the probate code that a non borrowering wife is made "aware" that the spouse is placing a lien on her inheritance rights.
Funny is that wife doesn't need to sign dower docs at the closing as I guess she's getting a roof over her head.
Reply by Victoria_NJ on 4/8/10 7:59pm
Non-borrowing spouse is signing the mortgage but not the Note. They are acknowledging that the loan is being taken by their spouse, but are not financially responsible. Unless the lender requests that the non-borrowing spouse be added to the deed via a Quit Claim, they simply will sign the mortgage, all title docs, you still ID them, etc.
The reason the non-borrowing spouse must sign the mortgage, is that in the case of foreclosure, if the non-borrowing spouse did not sign the mortgage, the lender could only foreclose on the person signing the Note.
From a title aspect, the non-borrower spouse must "perfect" title by acknowledging the mortgage as to all spousal rights and interest into the property by law (meaning by whatever the State laws prevail over marital interest.
Hope that answer wasn't over-complicated and was helpful.
Reply by Linda_H/FL on 4/8/10 7:59pm
1. Primer = NNA.....toss it...
2. It's a Quit Claim Deed...not quick..
3. A non-borrowing spouse is, simply, one not on the loan - nothing is automatic. Whether he/she needs to be put on title in order to sign the security instrument is dependant on individual state law. That's title's/lender's call - and you should get clear instructions each time you run across it - it's not your decision to make. There may be very good reasons a spouse is not on title and we can't assume anything.
Hope this helps. Now, what do you need to do for tomorrow??...
Reply by jba/fl on 4/8/10 8:01pm
You have 3 issues here:
"my state law primer."
I didn't think WA had a manual - is this from NNA?
Quit Claim Deed - not quick. Example: Mr is BO and bought the house by self. Got married. He 'quits' being single and takes possession w/spouse through this deed. Does not matter whether borrowing or non-ob, wife is now on new deed.
Non-borrowing spouse: one who is not obligated to repay the loan, unless there is death of the BO and the Non-Ob wants to keep the house, in which case they will have to pay. Many times (not always) with insurance proceeds, mtg. ins., etc.
Reply by MW/VA on 4/8/10 9:15pm
As far as I know, a non-borrowing spouse is one who's name is one title, but not on the loan.
I'm not aware of anything that makes that "automatic". Here in VA I've seen Quit Claim Deeds that add or remove the name of a spouse. That's the only way to change title vesting.
I doubt that a "state law primer" would cover the issue, because it's more about real estate law than notary law. I find it best to never assume. I have, on a few occasions, caught that the spouse needed to sign the critical docs (NBS sign DOT, Til, RTC, and all title docs--usually).
Always check with the tc if there is a question about a NBS signing anything.
Reply by Pat/IL on 4/8/10 9:22pm
"As far as I know, a non-borrowing spouse is one who's name is one title, but not on the loan."
A non-borrowing spouse is one whose name is on the marriage certificate, but not on the loan. A non-borrowing spouse may or may not hold title to the property.
Reply by MW/VA on 4/8/10 9:25pm
I was speaking specifically about the term "non-borrowing spouse" as it applies to a mortgage loan.
Reply by Pat/IL on 4/8/10 9:30pm
So was I.
Reply by Linda_H/FL on 4/8/10 9:31pm
Right...and a spouse doesn't necessarily have to hold title to be a non-borrowing spouse - that's what Pat was saying. They may have to "join in" the coveyance of the security but they don't necessarily have to be on title.
Reply by MW/VA on 4/8/10 9:35pm
Re: What constitutes a non-borrowing spouse?
Thanks for the info. I never understood it that way. I thought they had to be on title.
Reply by Pat/IL on 4/8/10 10:17pm
Re: What constitutes a non-borrowing spouse?
Marilyn, I think your understanding may stem from the difference in state laws. The Truth in Lending Act (Reg. Z) basically requires the consent of anyone whose ownership interest in the property will be affected by a loan subject to TILA. In your state, a non-titled spouse may not have ownership interest (I don't know, guessing).
In other states, the non-titled spouse has interest in the primary residence, according to state laws, by virtue of marriage (i.e dower rights, homestead rights, etc.). I'm not suere how community property states work.
So, in many states, the spouse has to consent even though he/she does not hold title. In any state, as far as I know, a titled spouse (any title holder) would need to consent to any loan subject to TILA.
My anonymous opinion only. Not to be relied on for real life purposes.
Reply by Susan Fischer on 4/9/10 5:16am
A smart one. ;)= n/m
Reply by Patti Corcoran on 4/9/10 9:05am
Re: A smart one. ;)=
Wow! I sure learned a lot! Many thanks to all who posted! What would I do without NotRot members; I have posted other questions before and always I have come away knowing a bit more than I did before. Thanks again and happy weekend to all!
Reply by Ocean Pacific Notary Services, Inc. on 4/9/10 9:19am
All states are spousal states, but only 9 are comm property states. So in WA, a comm prop state, non borrower must sign certain docs. BUT again, what does vesting say - that is your clue. Property could have been purchased prior to marriage or inherited. Spouse is not automatically joined to title. NON BOR would sign no docs including DOT if married, sole&SEP. WA as a Homestead law in place, so lender/title should have checked because spouse would need to sign DOT/Rider only if homestead and not on title.
Reply by Rani Sampson on 4/9/10 11:24am
Re: Check Domestic Partnership Status
Patti - the rest of the country doesn't realize that Washington just passed the "everything but marriage act" which creates a category of community property for registered domestic partners.
It's easier to check Domestic Partnerships than it is to check for marital status. Here's where you can find if someone is a registered Domestic Partner: http://www.sos.wa.gov/corps/domesticpartnerships/
If you learn that a domestic partnership is involved, you may want to suggest to the parties that they run this transaction past their lawyers.
Reply by Reverse Mortgage of America - Jessica on 4/9/10 6:46pm
Re: non-borrowing spouse...
non-borrowing spouse is currently a legal title owner with his/her spouse but is not a borrower on the loan.
non-titled spouse is not a legal title owner, but currently lives in the property and is not a borrower on the loan.
in either instance, certain states require the non-borrowing or non-titled spouse to sign the security instrument (deed of trust or mortgage). the lender will often require additional documents to be signed, but it will be listed on the lender closing instructions.