Posted by Bonnie Frederikson on 3/17/05 4:29pm
Msg #26098

Deed of Trust-two borrowers

I have a question if anyone can answer it.
What does it mean when only one borrower is named on the Deed of Trust and there are two borrowers on the note and all other documents?

Reply by Bobbi in CT on 3/17/05 4:58pm
Msg #26103

Bonnie,

I am replying because you had the courage to post your name. Stick to Bonnie in [state abrv].

One borrower owns the real property and is pledging it to the lender to secure the loan.

Two borrowers are on the Note and other loan documents because the One Borrower who owned the real property didn't have the income stream to qualify for the loan. I have seen loans with Four borrowers and only One property owner.

Why aren't both on title to the real property. Maybe one of them is on the "most likely to be sued list" (doctors, lawyers, independent contractors). If you are at high risk for a lawsuit and don't want to run the risk of your home being attached (i.e., then you can't refinance or get a loan without paying off/getting the lien released) and tying up the ability to mortgage it for cash out without having to negotiate with whom/whatever is sueing you.

Not an attorney. Not giving legal advice. Just thought you deserved an answer. This is a CT perspective, not always the same in every state.

Reply by Bonnie Frederikson on 3/18/05 10:53am
Msg #26268

Thank you so much. I'm trying to get into the business and there is lots to learn.