Posted by Cris_AR on 6/29/05 11:59am
Msg #48779
non-borrowing spouse
If the spouse is non-borrowing why is spouse listed as one of the borrowers on the DOT?
This is a first for me. TIA!
| Reply by Teasa/NY on 6/29/05 1:08pm
Msg #48801
I don't know the rules for your state, but they are probably not using his/her income so he/she is not on the note (promise to pay) but if he/she went in to title when they purchased the property or after he/she has to be on the mortgage, (security instrument) in NYS anyway.
| Reply by Nd_WA on 6/29/05 1:12pm
Msg #48804
Would you let your spouse sign the house away without your consent (assume your name is on title)?
| Reply by Teasa/NY on 6/29/05 1:14pm
Msg #48806
Some are spousal states some are ownership states, depends on the state.
| Reply by BrendaTx on 6/29/05 2:22pm
Msg #48821
Texas rules...if someone is living in the house, and gets their mail there...it's their HOME in other words, the DOT, RTC, TIL and some title docs must be signed by the person who is not on the note.
It may not be a spouse. Somewhere in this forum I wrote about Son and Mother's both signing the DOT. Momma owned the property. According to title, if Son had been married, wife would have had to sign also even though the home belonged to Momma because it would be wife's home. By living in a house just a few days it lends the possibility that said person might have accrued some rights to it...I suppose. That's what a TC Co told me when I sold my home/separate property (I owned before I married) after my husband died.
His actual residence in that house was a matter of days, after we married because we moved and rented it out.
It was their position that the interest he might have had should be passed through probate and get his children's mom/guardian of their estate to sign off on the sale. (Cutting a long story to a shortened version.)
No no no no. I won't sell it then, I told them. We worked around it.
And, as far as a DOT goes (as I undertand it) it does not convey any ownership...it just allows the person living there to agree to the encumbrance *if *they have title/right to the property.
If you ever go to an appointment and you don't know for sure whether the NOBS should sign it, make an extra copy of the last page of the deed, RTC and the TIL. Do it both ways and get the answer from the TC when you get back.
====
Disclaimer: Just chatting to avoid the summer cleaning I am doing - Giving examples only....DEFINITELY not UPL or purporting to know.
| Reply by Stephen_VA on 6/29/05 2:57pm
Msg #48829
[quote]Texas rules...if someone is living in the house, and gets their mail there...it's their HOME in other words, the DOT, RTC, TIL and some title docs must be signed by the person who is not on the note. [quote]
It can't be that simple, is there no rental market in Texas? There must have been something more than just inhabiting the hosue, like the family relation.
| Reply by BrendaTx on 6/29/05 3:39pm
Msg #48841
"Texas rules...if someone is living in the house, and gets their mail there...it's their HOME in other words, the DOT, RTC, TIL and some title docs must be signed by the person who is not on the note."
I was thinking very intently on the questions regarding NonObSpouse...wanting to make the point that in Texas it's not just about the spouse of the owner...at first I thought you were being a smart [e-mail address] then I realized like two guys living together as roommates: the mail thing would not apply...would it be nice to know the scoop on that one...I'll call someone in a few days and ask that question.
.
Very good point.
Now...here we are back at this: When in doubt call title.
| Reply by John_NorCal on 6/29/05 10:59pm
Msg #48934
Why do you Texans have to be so difficult? Here in CA, if you're on the DOT then it is yours, no one else will get on title unless you let them. DOT does, in CA anyway, convey ownership rights, it just avoids judicial foreclosure as in the case of a mortgage.
| Reply by Renee_MI on 6/29/05 2:06pm
Msg #48818
This is a very important aspect of loan docs, so I'm going to add some details to the answers already given. PLEASE CHECK YOUR PARTICULAR STATE'S LENDING & TITLE LAWS as this touches several vital areas.
1. A Non-Borrowing Title Holder AND/OR non-borrowing spouse would sign the DOT, the RTC, the TIL, a Name Affidavit, and possibly other lender-required docs to acknowledge that a lien is being placed against property they hold title interest in, and to have their dower and/or homestead rights acknowledged - again, CHECK YOUR PARTICULAR STATE'S REQUIREMENTS
2. A Non-Borrowing Title Holder and/or Non-borrowing spouse would NOT sign the Note (would negate the validity of the loan, as the non-borrower has not been included in application for loan or underwriting/approval, no disclosures given, no credit done, etc.), would NOT be on the 1003 or sign it.
| Reply by Cris_AR on 6/29/05 2:28pm
Msg #48824
In this particular case the spouse is not on title, I understand her signature on the DOT and other docs I just do not understand why she is considered "non-borrowing" yet listed on DOT as Borrower . John Doe and Jane Doe husband and wife as borrowers (not just signature). I honestly do not get it.
| Reply by PAW_Fl on 6/29/05 3:21pm
Msg #48835
The spouse is still a borrower, however, is not an **obligated** borrower. That is, if the obligated borrower defaults, the non-obligated borrower often has options on how to satisfy the mortgage. The non-obligated borrower is not obligated to repay the loan under the same terms, but the lender may extend that option to the non-obligated borrower in lieu of direct satisfaction of the mortgage. The non-obligated borrower, at the option of the lender, may be able to (1) assume the mortgage under the current terms and conditions (2) negotiate another loan to satisfy the existing loan or (3) place the property on the market (For Sale) and the proceeds will be applied to the mortgage. All these options are just that... options, that the lender may or may not offer.
| Reply by Bob-Chicago on 6/29/05 4:54pm
Msg #48856
Great answers, but not to the questoion asked
If you look at the standard mtg/dot the parties are defined in opering paragraph as "John Jones and Suzi Jones , Borrower"
That ( the term "borrower") then becomes a "defined term" in the rest of that doc and is used in lier of repeating "john jones and Suzi Jones" each time that they are referred to. It does not necessarily mean that they are both liable for the debt secured by the property.
Suzi may or not be signing the note. The only ones liable for the "debt" as descriged in the note, are the ones actually signing the note.
By signing the mortgage, anyone with a real or possible interest in the property, makes what ever interest they have in the property subject to the mortgage. If there is a default and foreclosure, then their intersted in the propety is toast.
Only the ones signing the note , however, are liable for balance due if forecloserue sale does not bring in enough to satisfy the debt due under the note.
Sometimes you must CARREFULLY explain to non-borrowing spouse that the term "borrower" ( which is also usually repeated on the RTC and TIL, ) that by signing a docs that referred to them as the "borrower", does not make them liable on the debt that they are not otherwise responsible for.
Above id not intended as legal advice.
| Reply by Ernest_CT on 6/29/05 9:43pm
Msg #48914
Re: Great answers, but not to the questoion asked
Hmmm. If I were to attempt those kinds of explanations, I'd definitely be guilty of Unauthorized Practice of Law. Stear clear!
|
|
