Posted by LarryTN on 10/24/05 4:59pm
Msg #72087

non-obligor

A friend and I are arguing about what a non-obligor is on a document. I say it's someone who is on the title but not obligated on the loan. She says its a spouse who is not listed on the title. Who's correct? TIA

Reply by PAW_Fl on 10/24/05 5:15pm
Msg #72090

A non-obligor is someone who has an ownership interest in the property but is not obligated for the loan. Depending on a state's spousal laws, a spouse may be a non-obligor simply by marriage even if he/she is not specifically mentioned on title. For example, under Florida's Constitution, a spouse is protected on homestead property. Therefore, even if the title doesn't specify identify the spouse by name and/or relationship, that spouse may be a non-obligor if the other spouse is obtaining a loan using the homestead property as security.

In TN, according to the Stewart Virtual Underwriter:

Tennessee does have a marital interest. A spouse must join in all conveyances where they are a record owner. Spouse must join in all deeds of trust to bar their marital interests. T.C.A. 26-2-301(b) relates to homestead issues. T.C.A. 31-1-105 relates to all property.

Reply by LarryTN on 10/24/05 5:18pm
Msg #72091

Thanks PAW....I thought they had to be listed on the title...Learn something new every day!

Reply by PAW_Fl on 10/24/05 5:20pm
Msg #72093

Depends on how the statutes (or in our case, the Constitution) is written.

Reply by BetsyMI on 10/24/05 9:35pm
Msg #72108

PAW, what is the Stewart Virtual Underwriter? Can I find out about this issue there in regard to the state of Michigan?

Reply by PAW_Fl on 10/25/05 8:51am
Msg #72141

The Stewart Virtual Underwriter (http://www.vuwriter.com/) allows attorneys, title offices and lenders to have access to all the information needed to close a transaction, 24 hours a day, seven days a week.

This award-winning program is easy to use and offers a host of information such as:

* Bulletins - hundreds of bulletins clarifying underwriting guidelines and procedures
* Business Practices - a state-by-state guide on how real estate is transferred, including recording fees, transfer taxes and forms; in addition to the UCC Guide and the Real Estate Recording Guide, both with access to information provided by Ernst Publishing
* Corporate Directory - key Stewart associates listed alphabetically and geographically
* Endorsement Guidelines - instructions on how and when specific endorsements should be used
* Forms - the most comprehensive collection of policy forms and endorsements available
* Comprehensive Search - keywords in the Underwriting Manual, Forms, Bulletins, Standard Exceptions and Endorsement Guidelines
* Patriots Database - downloaded automatically every night from the U.S. Department of the Treasury's list of Specially Designated Nationals (SDN) and Blocked Persons, the database is searchable by last name, first name and alternative identity, and includes links to the Executive Order on terrorist activities and the Stewart Legal Services Bulletin detailing how to handle a search procedure
* Standard Exceptions - a list of the most frequently used policy exceptions as well as thorough explanations of how and when they should be used
* Underwriting Manual - general underwriting principles for insuring most real estate transactions on a national and state-by-state basis

Not all information is available to the general public. For access to some areas, one must be a Stewart Title agent or member.

Reply by BetsyMI on 10/25/05 9:47am
Msg #72155

Thanks much, PAW!