Posted by ammobile on 10/25/04 7:05pm
Msg #10492

nonobligated borrower

I live in Indiana, which is an equitable property state. I have done 2 refi's, with nonobligated borrowers signing TIL, RTC, Itemization, Mortgage and other security docs. When questioned why the non-obligated borrower needed to sign I had difficulty explaining why and was concerned it might be UPL to do so. I did say it had to do with Indiana's property laws, and may be how they are taking title to the property. Can someone please give me a better succinct explanation to give to borrowers on why the nonobligated borrowers need to sign certain docs, even if they are not going to be put on title? TIA

Reply by KC/IN on 10/25/04 8:29pm
Msg #10496

Given that Indiana is not a dower state, the only reason a nonobligated borrower would have to the RESPA docs would because they are on title to the property. An easy way to explain it is by simply telling them that if the nonobligated or vested owner didn't sign off on those docs, then the lender wouldn't have 100% interest in the property which would make for an invalid mortgage.