Posted by Anonymous on 4/18/06 9:17pm
Msg #114353

non-borrowing spouse

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 anonymous1 on 4/18/06 9:18pm
Msg #114354

sorry not a NOBS question ...oops! n/m

Reply by BP/WV on 4/18/06 10:08pm
Msg #114357

Hmmm...sound like a test question n/m

Reply by VERONICA DESCHANEAU on 4/18/06 10:19pm
Msg #114362

It is a test question. n/m

Reply by VERONICA DESCHANEAU on 4/18/06 10:23pm
Msg #114364

Re: It is a test question..Hit the button too soon

The same question has been asked many times over and it is always worded the same.

See Msg #60587, Msg #50142, Msg #26098, Msg #26097 and Msg #15687

C'mon people...do your own damn research. Asking people on this board for answers is the same as cheating!

Reply by Anonymous on 4/18/06 11:09pm
Msg #114369

Re: It is a test question..Hit the button too soon

Thanks Veronica for the message#'s, i tried search but i didn't find anything helpful, sometimes it's easier with the message#. I appreciate your help.

Reply by Becca_FL on 4/18/06 10:13pm
Msg #114360

It means someone who has no interest in the property is obligating themself to the Note.

IMO, it means the person doing this is not too smart. OR could be a parent just helping out.

In some CA sub-prime loans, it means...get as many people as it takes to make the income requirement and say they all live together.

In short, if you know who the lender is, you just might have your answer.

All of the above is JMHO. Different scenarios may apply throughout the USA. I only speak of what I know first hand and I do so tongue in cheek. ---For those of you with no funny bone.

Reply by Anonymous on 4/18/06 11:10pm
Msg #114370

Thanks a bunch Becca, I appreciate it. Thanks to all who gave input!

Reply by patricia on 4/18/06 10:20pm
Msg #114363

I do know that World Savings is willing to loan money to someone not on title if the owner of
property will permit it.. They probably dont do this too often as I have only done one loan
where this was allowed., so the additional borrower signed the note but was not named on the deed of trust. In this case the borrowers new wife was borrowing money to put her son from another marraige through college, she was responsible for the payment.

Reply by ReneeK_MI on 4/19/06 5:01am
Msg #114394

Re: non-vested co-borrowers

The primary borrower of a mtg loan (primary = the person who presents the majority of the income used to qualify for the loan) needs or desires a co-borrower or co-borrowers, and the co-borrower(s) do not hold any title interest in the property (e.g. are not vested by virtue of being a spouse, by virtue of any granting, by virtue of homestead, community property, etc) - the lender can not demand that they be granted title interest by the borrower.

In other words, the lender can not MAKE the primary borrower provide title interest to the non-vested co-borrower. The lender can not tell anyone to add anyone else to their property's title. Sometimes this boils down to semantics - if a lender requires any/all borrowers to BE title holders, they could state it that requirement that way, it's their money and they can have any rule they want that's legal - but they can not legally demand specifically that "co-borrower must be added to title".

It's not at all uncommon for co-borrowers to be non-vested on the title. I've seen title companies, when presented with closing on this scenario - require the co-borrower be added as their OWN requirement. It's certainly one of those 'fine line' areas where each entity must be very cautious about what they're imposing, what risks they're presenting to each person, and how they advise them.

Let's say the borrower's brother is somehow indebted to the borrower. Borrower needs a co-borrower to qualify for a mtg. Brother acts as co-borrower, but has no title interest. If lender demanded that brother be added to title (granted via QCD) - there can be untold risks absorbed by the borrower - as the brother's assets now could INCLUDE that property (think divorce, bankruptcy, death, fed tax liens, etc). Potential lawsuit against lender for demanding that title vesting.

On the other hand - there is a lot of risk absorbed by being a co-borrower without any title interest! (That's why some title companies go THAT side of the fence, and require that all borrowers be vested on title).

For the lender, it's a 'between a rock and a hard place' situation. The best interests of the borrower are a direct contradiction to the best interests of the co-borrower.

The point, anyway, was that it's not uncommon to have a non-vested co-borrower. In these instances, they would not be named on or sign the mtg/dot.

Reply by Lee/AR on 4/19/06 7:49am
Msg #114402

Excellent, ReneeK n/m