Posted by cfwMI on 1/8/06 12:51pm
Msg #86978

Has anyone heard of this? Help!!

One bwr named ont he DOT but, 2 on the note and other docs. I have never heard of this. Any input would be greatly appreciated. TIA

Reply by cmd_NH on 1/8/06 12:53pm
Msg #86980

Are you saying they one borrower listed on DOT and 2 people on the loan docs?

Reply by cfwMI on 1/8/06 12:55pm
Msg #86981

Yes. It sounds strange to me.

Reply by cmd_NH on 1/8/06 1:24pm
Msg #86985

Sometimes there is one owner on the deed, but for some reason (marriage, co-signer needed, whatever) there is a second signer on the loan. It is strange as I would not want to be responsible for a loan in which I didn't have any claim to the property, but people have their reasons, whatever they are.

Reply by Stamper_WI on 1/8/06 9:34pm
Msg #87018

Or it is a marital law state...or there was a marriage and the spouse was not put on the deed. A lot of people forget to do that or choose not to. until they have to. I have seen deeds made out to the wife on property she bought before marriage and name change or bought jointly before marriage before her name change.

Reply by JanelWI on 1/8/06 1:21pm
Msg #86983

What does the first page of the DOT say? Does it list both of them? The 1003, URLA...does it list borr and co bor? Do they intend to file for Joint Credit? First of all, call the company and ask...No obligor signs the DOT. Co bor...signs the DOT. Just call the company and ask if this is a clerical. DOT is an important doc.

Reply by cmd_NH on 1/8/06 1:25pm
Msg #86986

clicked too soon!

I would definately double check to make sure it's right before you proceed.

Reply by Kate/CA on 1/8/06 3:04pm
Msg #86997

These are few and far between but they do happen.

Reply by Julie Williams on 1/8/06 9:03pm
Msg #87012

Does the "MI" after crw state for Michigan?

If so, you must have closing for out of state property as Michigan is a mortgage state, not a Deed of Trust state.

Call the company that hired you, get the name of the person you spoke with, and do what they say.

Reply by PAW_Fl on 1/9/06 8:22am
Msg #87032

Sounds like a test question

The are some notary tests that have this question on it.

Reply by Kevin Ahern on 1/9/06 4:38am
Msg #87026

The note and the mortgage/deed of trust create different liabilities for the signers. The signers on the note are liable to the lender for money damages in the event of default. Their debt to the lender is unsecured unless they also sign the mortgage. If they sign the mortgage they forfeit the property to the lender in a foreclosure in addition to being liable on the note.

If the debt exceeds to value of the property the lender has the option of seeking a difficiency judgment against the borrower for the difference between the amount of the debt and the value of the property. In most states the borrowers are jointly and severally liable on the debt, meaning that the lender can seek payment of the entire debt from either one of the borrowers or both.

In the scenario you have described it is possible that only one of the borrowers was the title holder to the property. If this is the case then the debt of the non-titled signer would seem to be unsecured while the debt of the title holder would seem to be secured by the real estate in question. In which case the lender has other options to satisfy the debt...wage garnishments...bank account garmishments...personal property seizures.

Reply by Mike_IA on 1/9/06 8:13am
Msg #87031

Co-signer on note with no ownership interest

Not an especially wise thing to do on the co-signer's part which explains why you don't see it very often. Of course, a quick call to the lender would have cleared this up without the need to post here, was it a typo on the mortgage or an actually non-owner co-signer.

Reply by Janlee_MI on 1/9/06 8:55am
Msg #87033

Re: Co-signer on note with no ownership interest

This is property that might not be owner occupy. If that is the case then this is normal. Because the Deed is only in the property name. However they both can borrower against it. This is common for investment properties.

Reply by Sylvia_FL on 1/9/06 10:14am
Msg #87040

It happens But the only time I hear of it is when the same question is asked on this board from members taking a particular signing company's test.

Reply by cfwMI on 1/9/06 10:24am
Msg #87042

Your are right. Only it has been on more than one, and I have never, ever heard of it.

Reply by Paul_IL on 1/9/06 12:45pm
Msg #87068

Sometimes this is done for liability issues or privacy issues. Example is a police officer who puts everything of public record in the name of the spouse.