Posted by busybee on 1/15/07 1:46pm
Msg #170881

above and beyond the call of duty

I know this is out of my job description, so I don't intend to do anything with this information, but it is driving me crazy and I would like some input. So here is the situation........

Background: Mr. and Mrs. married a few years ago. Mr is very wealthy, Mrs. is not. Mister's kids throw a fit so Mr is leaving everything to kids except Mrs. house.

So, Mrs. wants to refinance her home. WA is community property state. Loan is a first and second. What is the proper way for this to be done so that Mrs. doesn't lose her house to the kids when Mr. dies? (he is not healthy).

The way it was done, Mr. signed the deed, til, and rtc. It is my understanding that by signing the deed of trust in a community property state you are then on title. The loan officer and title officer claims that by signing the deed of trust he is just acknowledging that Mrs. is refinancing and he will not be on title.

So, I guess my question is: By signing the deed in community property state, is Mr. on title?

Mrs. thinks Mr. needs to sign a quit claim deed to remove him, and title / lo will not, saying it doesn't need done.

Again, I know none of this is my worry, and I just had them sign and sent docs back. Just wondering if anyone knows how this should have worked. Sorry for the long and choppy post !!

Reply by Bob_Chicago on 1/15/07 2:08pm
Msg #170885

Not leagal advice , and I do not know "jack" about.....

community property, but as a general rule, a mortgage/dot
does not do anything to change how the titlle to the prooprty is held.
That can only be done by the party(s) in title signing and
delvering a grant deed (quit claim or warranty , usually)
When a party not on title to the property signs a mtg/dot,
they are stating that whatever interest that they have in the
propery, ( usually as a spouse) is subject to the terms of the mtg/dot
As you state, not your problem.

Reply by sue_pa on 1/15/07 2:11pm
Msg #170886

Re: Not leagal advice , and I do not know "jack" about.....

completely agree with Bob. These are the kinds of people that some lawyer will make a lot of $$$ from one day. Rhetorical - Why in the world aren't these people at a lawyer's office when they know there are going to be problems down the road ?

Reply by Mindy_WA on 1/15/07 2:59pm
Msg #170896

In answer to your question...not to be construed as legal advice, as I am not a lawyer and don't play one on TV If Mr. signed the "legals" he is on title and not on the loan. If he Quit Claims off, he is off title.

But, as you stated, not your business. Unfortunately, people rely on their LO to know the law & don't go through the proper channels to make sure this is taken care of. What I am not sure of, is, if they are married is anything really necessary? The house and all the belongings would go to her unless he specifically stated different, in a will.

At least, from experience, this is how it went. My husband's mother passed away, and all they had stayed with his step Dad. Fortunately, he was willing to give all that 'meant something' to the kids...they got no money, house, or estate.

IMHO, the only concern would be, a will to give the kids 'everything'. Otherwise, if they are married, she (the wife) gets everything...and should she get remarried, the survivor of that marriage would get everything.

Reply by VickiWA on 1/15/07 4:55pm
Msg #170902

Not a lawyer and not legal advice but Mindy is correct n/m

Reply by jojo_MN on 1/15/07 3:41pm
Msg #170899

I'm also not an attorney, yada, yada, yada. In the second paragraph you stated that "Mr. is leaving everything to kids except Mrs. House". That should answer the question in the next papagraph. "What is the proper way for this to be done so that Mrs. doesn't lose her house to the kids when Mr. dies?". Did I miss something here?

Reply by Les_CO on 1/15/07 5:18pm
Msg #170905

In a "community property" State one cannot disinherit a spouse. If he croaks, she'll get half of marital property. (unless a pre-nup) Why do you care? Oh, BTW, this is just chat room BS!

Reply by busybee on 1/15/07 6:46pm
Msg #170919

From what Mrs. told me, there is a pre-nup and/or a will preventing her from getting anything besides this one house. Which now apparently has his name on it as well, so now when he dies, she will be left with nothing. Unless he signs a quit claim deed, which was the plan, but now l/o and t/o said there is no need for one.
I care because I went into this closing thinking I knew my job pretty well and by the time it was over, I felt stupid. I was snapped at by l/o, title, and ss. Told I should know what docs to have signed (which I did until they butted in). But then between the three of them, could not decide what should have been done!! I guess I should have just left since they couldn't make up their mind what to have signed. Everything about this closing stunk from the first phone call from ss. I should have known not to go when ss called my cell 16 times and home 10 times in the hour and a half I was unavailable that day!!
The other reason I care (which shouldn't matter) is that I live in a small community. Mr. ownes many businesses and both are a very prominent part of the community. I was hoping to make a good impression, and maybe boost local business a little. Instead, I was the idiot notary who was on hold with ss for 1/2 hour and had them sign in the wrong places resulting in Mr being on title when that's not what Mr. or Mrs. wanted.
As I said before, I know my job is to have them sign and be done, I was just very frustrated with this situation. I wanted your thoughts and to vent a little. That's all.

Reply by TitleGalCA on 1/15/07 9:45pm
Msg #170966

Uh...so if he is in title, and there is a will leaving the property to her, why will she be left with nothing??

This is simple to me - his WILL says she gets the house. She is married to him. If he's in title, it SHOULD be as joint tenants. There should be no need to quitclaim. Only if they were in title as Tenants in Common might there be a problem but methinks a will would supercede.

Brenda, what's your take?

The will/pre-nup will take precedence over all else when this ends up in probate court due to two married people who aren't getting good advice from either their lawyers (or lack thereof), their title company, and their LO.

But whoever said a lousy LO ever gave advice to meet the BORROWER'S needs?

Oh, BTW, I'm not an attorney. But I'm pretty damn good at title.

Reply by busybee on 1/16/07 12:15am
Msg #171011

Ya, I think they need to go see their lawyer. Thanks for your opinions and equally as important, for letting me vent!