Posted by Charm_AL on 4/20/05 8:00am
Msg #32811

Good Foggy Mornin :)...

I have a question that was asked of me. I do not know the answer because Alabama is a 'mortgage state' and not a 'deed of trust state'...found that out by extensive research yesterday. Anyway, I even called my local favorite lender and three people there didn't know either.
Help!...this is driving me nuts!
Why would there only be one borrower on the 'deed of trust, but two on the note and all the other documents? This is a question being asked by a title company I'm trying to sign up with. I have never seen this, even as a mortgage broker, usually if there was one borrower in a marriage, and one didn't sign anything, it was because the spouse's credit was bad and would drive up the interest rate. I know it's not a vested owner. Is it because the borrower was on the DOT before he married? I don't think so, because then they would change the mortgage here ( AL) to reflect both borrowers in a refi if the spouse signed everything else?...I'm so confused...Any one from a DOT state know this? Wouldn't the spouse inherit the liability if the other passed anyway because he/she signed the note? Why wouldn't they be on the DOT?

P.S. www.broadbandreports.com/stest will tell you how fast you upload and download, if you care

Reply by Dee-FL on 4/20/05 8:20am
Msg #32818

I did a signing here in Fla. where the spouse was not on all of the docs. I was told it was because the spouse did not have an interest in the property, but would be held accountable for the payments if her husband died. Therefore, she needed to sign the HUD, mortgage, Trust in Lending and the RTC only. I didn't understand this and didn't ask any other questions because I was just there to notarize their signatures. Not sure about AL. Maybe the laws are similar.

Reply by Charm_AL on 4/20/05 8:32am
Msg #32820

this is the link I found concerning deed and mortgage states and some good info, but this question still has me stumped.

http://www.financeadvocate.com/

More coffee methinks and a fresh search...I even had my hubby looking thru the internet last night What kills me is it's probably a real simple answer!

Reply by Dee-FL on 4/20/05 8:45am
Msg #32822

Good luck.

Reply by PAW_Fl on 4/20/05 9:04am
Msg #32826

Huh??? This doesn't make sense. You stated:

>>>... the spouse did not have an interest in the property, but would be held accountable for the payments if her husband died. Therefore, she needed to sign the HUD, mortgage, Trust in Lending and the RTC only ...<<<

If the spouse didn't have an interest in the property, then she wouldn't be signing the mortgage, RTC, or property related documents. If she didn't sign the note, then she wouldn't be liable for payments either, if the husband died, assuming this is homesteaded property. Of course, upon his demise, she would have the option of assuming the mortgage or selling the property to pay off the note.

Reply by Dee-FL on 4/20/05 9:43am
Msg #32836

Good Morning to you PAW. Just repeating what the title company told me. I don't ask any questions unless the signer asks me. I then refer them to their closer or I call the title company for them. Since I don't have an interest in the transaction I just do as I'm told...Notarize/Witness the signers signatures. Not sure where the title company got there information, but as I stated this is what the girl told me, at the time. It's a pretty reputable title company, also.

Reply by Art_MD on 4/20/05 8:47am
Msg #32823

The one person on the deed of trust owns the property.
The person on the DOT wants to refi the house.
His credit/income won't support the payments, so his wife, who has income, agrees to be co-borrower.
She signs all the docs related to the loan. She is jointly responsible for the loan. The house is colatteral for the loan.
They may not want her on the DOT for many reason (which wouldn't affect a signing). Could be as complex as divorce terms etc.

Art

Reply by Dee-FL on 4/20/05 9:01am
Msg #32825

Thanks Art. That puts it into perspective. I was curious as to why some docs come like that, but as I stated I never ask or answer questions about the docs. Thanks for explaining.

Reply by Charm_AL on 4/20/05 9:52am
Msg #32839

thanks guys....n/m