Posted by BetsyMI on 1/26/06 11:50am
Msg #91369

What does it take to be on a Title

Hope this isn't a dumb question........

I've been a signing agent for two years but a borrower's question had me stumped. What exactly gets both parties of a marriage on the Title? Are they automatically on Title by virtue of being married?

I'm specifically thinking of all these "deals" where only the husband's (or only the wife's) credit is used for a refi, and so only his name is on the Note, but the spouse signs the mortgage, the TIL and the RTC. Is her name automatically on the Title?

Thx.

Reply by Anonymous on 1/26/06 12:43pm
Msg #91385

A deed must be done to place a non-titled person on to the title. That does not mean they have to be a borrower. For example, in PA a wife may not be on the title becaue her husband bought the property when he was single but she still has to sign the HUD, TIL, RTC and MTG because of spousal rights. If she wanted to be added to the title a quit claim deed would have to be done adding her on and recorded in the county records but if she wasn't listed on the note she would still only have to sign those 4 docs plus the title affidavits from the title company
If she was on the title and on the loan she would have to sign everything.
A quit claim deed can also be done to remove someone in case of divorce or whatever other reason they have to not want interest in the property.

Hope that helps!!

Reply by PAW_Fl on 1/26/06 12:59pm
Msg #91387

Depends on the "spousal rights" statutes of a given state. For example, in Florida, under our Constitution, if the property is homesteaded, it is protected for both spouses, whether or not both are actually named on title. Some states allow for separate property ownership, some require a spouse to be "joined" on title.

There are many times when only one borrower is responsible for the loan and only that borrowers income/credit is used to qualify for the loan. But, again depending on spousal and other property ownership laws, the NOBS (Non Obligated Signer/Spouse) may need to sign the 'legals' so they are made aware of the impending lien on the property.

Reply by Julie/MI on 1/26/06 1:12pm
Msg #91392

In Michigan, this has to to with probate law.

Our state, for probate purposes give automatic inheritance rights to a spouse even if they never get "deeded on".

A non-borrowing spouse in Michigan MUST be made aware that their spouse is encumbering the property; thus putting a lien on their inheritance rights. The way they are "made aware" is by siging the mortgage, til, rtc, itemization and some junk title docs. This is their acknowledgement that a lien has been placed on their inheritance. Personally, I think this is a great thing so if a spouse wanted to squander the equity on the home to help with a gambling or drug problem, the spouse needs to know.

I am not on title to my home because of my business. But I am "really" there (also have an exectued qcd in my file cabinet in case I ever needed to put me on title).

Hope this helps.

Reply by BetsyMI on 1/26/06 2:47pm
Msg #91448

Thank you all. Most of what you said I had heard before, but you reinforced it. I appreciate the clarification.

In the case I had last night, the couple had just gotten married four months ago. The husband previously owned the house by himself, and they were adding the wife as a non-borrowing spouse. There should have been a QCD in the package, but there wasn't, so that's what prompted my questions. Thanks!

Reply by ReneeK_MI on 1/27/06 4:51am
Msg #91637

In this situation, they wouldn't need a QCD adding the new wife's name to title. MI's dower law grants her automatic title interest, by virtue of being his wife. This is as Julie illustrated - though Julie's not vested by name, she IS automatically vested by dower law.

MI is particularly interesting because dower rights only pertain to wives, NOT husbands - the complimentary law to men was called 'courtesy', and was abolished years ago. HOWEVER - never, ever have I seen either T/C or Lender treat wife/husband differently, as IMHO it would be asking for a lawsuit. (Example: allow the wife to encumber the home w/o obtaining the ack. of the husband - husband files suit against everyone and their brothers, seems it would also fall under 'discrimination')

Regardless - it is the Lender's dollars, lender sets the terms. Lender's (for MI) will always (yes, big word, but never saw it done differently) state "spouse must sign mtg, TIL, & RTC", no distinctions between male or female spouse, just 'spouse". NOTE - this does NOT apply to purchases. In MI, anyone can purchase w/o ack. of spouse - just can't encumber or sell it w/o the spouse's ack.