Posted by sn/oh on 10/15/09 12:17pm
Msg #307477

now I know I'm not crazy...

I have a closing in the morning. The young woman is married less than 1 year. the Home is only in her name. the money will be used to fix up the place. Now I know that Ohio is a spousal state, but the bank is telling me that they follow federal guidelines and the federal guidelines trumps Ohio spousal state law.

Does federal law trump state law??? Help!!!!

Reply by Shoshana/AZ on 10/15/09 12:21pm
Msg #307479

You need to do what they tell you to do. If it's wrong, you'll get paid to go out again.

Reply by ReneeK_MI on 10/15/09 12:21pm
Msg #307480

Doesn't matter, it's their call not your's =) n/m

Reply by Jim/AL on 10/15/09 12:23pm
Msg #307482

assume you have it in writing from them, proceed as they say n/m

Reply by sn/oh on 10/15/09 12:35pm
Msg #307484

Requested and have rec'd it in writing. Thanks so much n/m

Reply by PAW on 10/15/09 1:08pm
Msg #307491

Ohio is not a community property state!

Ohio is a separate property state.

It is also considered an equal "contribution-distribution" state when the issue pertains to marital property. Generally property obtained during the marriage belongs equally to both spouses and will be divided equally during the dissolution of a marriage, unless the action creates a substantial "hardship" to one party. There are some exceptions to the division law; property such as personal injury awards, inheritances and so forth belong solely to the spouse that was named in the action. In addition, all property acquired before the marriage or during a separation is considered to belong solely to the spouse who acquired it.

Federal law trump state law? What law are you thinking about. It's nothing to do with Fed vs State laws. It has everything to do with the home, being acquired prior to marriage, is her home.

Reply by Todd/OH on 10/15/09 9:06pm
Msg #307541

The spouse has to be there to sign - period. n/m

Reply by Cari on 10/15/09 1:13pm
Msg #307493

its not considered spousal property if she purchased

prior to her marriage....but follow what the TC has advised you.

Reply by Cari on 10/15/09 1:14pm
Msg #307494

absolutely correct PAW! n/m

Reply by bl/oh on 10/15/09 1:23pm
Msg #307498

Re: absolutely correct PAW!

Ohio has what is called dower rights, which has always been a difficult thing to explain. Even if one spouse purchases a property before the marriage, the other spouse has dower rights just by being a spouse and must sign off on a mortgage or transfer of real estate. The mortgage deed is supposed to be set up on the signature line to read"signing to release dower only". If they divorce, dower rights cease.

Reply by mwm143 on 10/15/09 1:22pm
Msg #307497

When a property is deeded Tenants by Entirety

then both will always sign regardless of the state laws. Otherwise the lender will have a hard time claiming superiorty over a spouse in a foreclosure situation. HOWEVER, if she purchased the property as a sole owner AND Ohio is not a spousal state then the lender's rights supersede hubbys.

Reply by Cari on 10/15/09 2:07pm
Msg #307500

Ohio is a dower state, therefore the spouse MUST sign

the new deed...unless he signs a release or waiver....interesting....what does federal law say...PAW??? anyone...

Reply by sn/oh on 10/15/09 3:55pm
Msg #307514

Re: Ohio is a dower state, therefore the spouse MUST sign

I checked into the loan further and found out that it is a "Title One" loan. The bank said that the spouse does not have to sign the mortgage for a "title one" loan. The title one is a loan given to fix up the property. The loan papers looks like a regular refi, ie RTC TIL Mortgage.

Reply by Cari on 10/15/09 6:24pm
Msg #307530

in the end, when they try to file it, and it gets rejected..

then they'll know that you were right!

Reply by PAW on 10/15/09 6:27pm
Msg #307532

Re: Ohio is a dower state, therefore the spouse MUST sign

Ohio has statutory dower, so the spouse must must join in the execution of all real property conveyance documents. I'm not familiar with "Title One" loans, but a mortgage doesn't convey ownership so, if my information is correct, that would negate the spouse from signing the Mortgage.

Sharon, can you please explain what a "Title One" loan is and how it affects real property.

Reply by sn/oh on 10/15/09 8:42pm
Msg #307539

Re: Ohio is a dower state, therefore the spouse MUST sign

A Title One loan is a property improvement loan only. You can only use the money to repair the home. In fact, it has a completion certificate form that the contractor must complete when work is finished and that form must be sent back to the bank.

Reply by Claudine Osborne on 10/15/09 8:48pm
Msg #307540

Re: Ohio is a dower state, therefore the spouse MUST sign

Ohio is a dower state..Spouses sign the RTC, HUD, TIL, Mortg and Itemized amount financed.. I have not done a Title One loan so this may be a little different.

Reply by Jim/AL on 10/15/09 9:55pm
Msg #307545

Title One loan, sounds like a Construction/Home Improvement

loan. I have done these in AL (Dower State) and the spouse has always signed.

Regardless of whether they should sign or not, she needs to follow the hiring parties written instructions and do what she was hired to do. If it is wrong and cannot fund, then she should get paid and will probably be paid a second time to close again.

I love to know the legalities and right vs. wrong and I learn something new all the time here because of that.....but following instructions (as long as you are not committing a crime) is usually the best practice.

Reply by MW/VA on 10/16/09 9:05am
Msg #307561

Re: Title One loan, sounds like a Construction/Home Improvement

"I love to know the legalities and right vs. wrong and I learn something new all the time here because of that.....but following instructions (as long as you are not committing a crime) is usually the best practice."
Great & best advice, Jim. I couldn't have said it better myself.

Reply by MikeC/NY on 10/15/09 10:14pm
Msg #307550

Re: Ohio is a dower state, therefore the spouse MUST sign

"A Title One loan is a property improvement loan only."

Is this anything like an FHA 203K loan, which can be used to purchase and rehab a property?

Reply by sn/oh on 10/15/09 10:26pm
Msg #307554

Re: Ohio is a dower state, therefore the spouse MUST sign

I am not an attorney but I don't think so. The Title One loan is more like a HELOC. The FHA 203 is more for purchasing and rehabbing property.

Reply by Linda_H/FL on 10/16/09 9:10am
Msg #307563

It's an FHA Home Improvement Loan

http://www.fha-home-loans.com/home_improvement_fha_loans.htm

Google - there's lots of info on them. I didn't research it more but if a lien is being put on the property, especially if it's their primary residence, I don't see why the spouse wouldn't sign (based on the posts that OH is a dower state)....maybe not a primary residence but an investment property?

Just a thought.

Reply by PAW on 10/16/09 10:20am
Msg #307568

Re: It's an FHA Home Improvement Loan

Ah, "FHA Title 1" loan. Now that rings a bell. (No, my name is not Quasimodo.)

>>> I don't see why the spouse wouldn't sign (based on the posts that OH is a dower state)....maybe not a primary residence but an investment property? <<<

Because OH is a "statutory" dower state (common law dower [wife] and curtesy [husband] have been abolished), and a mortgage does not transfer property ownership, it may be that the non-titled spouse [husband] doesn't need to sign. (This is from an outsider looking in.)

Reply by Todd/OH on 10/17/09 3:57pm
Msg #307717

Re: Ohio is a dower state, therefore the spouse MUST sign

That bank has a bunch of screwed up attorneys. The mortgage is not, NOT valid unless the spouse signs. It's a worthless piece of paper.