Posted by Anonymous on 3/20/06 11:55am
Msg #107011

NON Borrowing Spouse?

I have had 2 signings in the past 2 days where the title company states they don't have to sign documents. Well they do in Michigan. Both Title Companies are in Calfornia do they not sign non borrowing docs in Calfornia.

Reply by PAW on 3/20/06 12:02pm
Msg #107012

There are many reasons why a NOBS would not have to sign documents. If the TC says NOBS not required, then NOBS not required. You're right to question it, but if you are told that the spouse does not sign, then so be it. You are given your instructions. You do what you are contracted to do, nothing more, nothing less. If the NOBS is required to sign, then the TC will need to rectify the situation, not you.

Reply by ScottieB on 3/20/06 4:46pm
Msg #107144

That is strange that the NOBS would not sign at least the DOT, TIL, and RTC. Unless of course it's a Non-Owner HELOC, then it would just be the DOT.

PAW, just so I can say I learned something new today what are some of the reasons why a NOBS would not be required to sign at least the DOT?

Reply by PAW on 3/20/06 5:09pm
Msg #107153

Depends on the laws of the state the property is located in. Some states have homestead laws, community property laws, etc.

Often, investment property, not owner occupied may not (but not always) need both spouses signatures. Again, this depends on the state law about spousal rights, whether or not there is a "sole and separate" agreement, etc. Other conditions may be due to a divorce settlement decree. Trust ownership, where one spouse is the trustee, but not the other, on a given piece of real property, is yet another possibility. But, all these 'possibilities' must be in accordance with applicable state and federal laws.

Reply by PAW on 3/20/06 5:13pm
Msg #107154

Re: NON Borrowing Spouse? Signs DOT then ...

If a NOBS signs the DOT, there is an assumption of the NOBS having an ownership interest in the property. Therefore, the NOBS would also be required to sign an RTC, since Reg Z language includes anyone with an ownership interest in the transaction. It doesn't say "borrower" or "spouse" but "each consumer whose ownership interest is or will be subject to the security interest shall have the right to rescind."

Reply by ScottieB on 3/20/06 6:25pm
Msg #107189

Re: NON Borrowing Spouse? Signs DOT then ...

I just realized I assumed Non-Borrowing Spouse was the same as Non-Borrower Trustor, which is why I referenced the DOT, TIL, and RTC.

My understanding is (at least the Countrywide way) in a community property state like CA, assuming the NOBS gave up all interest in the property with either a Quit Claim or Interspousal Transfer Deed, they shouldn't have to sign anything at all.

However, if they did not give up interest in the property then they would have to sign the RTC, and nothing else.