Posted by Wishie on 6/28/10 1:02pm
Msg #342776

Difference between homestead state and Martial status state?

I'm just wondering what the difference is between the two? For example, New Jersey is a Martial status state, and Florida is a homestead state. I'm just curious about this. Non-borrowing Spouses in New jersey have to sign the Mtg, rtc, til, riders, and sometimes the itemization and Hud. What do borrowers have to sign in a homestead state?


thanks

Jeff

Reply by Shoshana/AZ on 6/28/10 1:19pm
Msg #342783

I think you mean marital (not martial).

I could be wrong, but I don't think they are mutually exclusive. I believe that AZ is both a homestead state and a community property state.

Reply by PAW on 6/28/10 1:30pm
Msg #342786

All states have "Marital status" statutes. Some states are community property states, some are homestead states, some have dower rights, etc. Some states have combinations of the different types of marital exclusions and/or inclusions.

New Jersey is neither a homestead state nor a community property state. However, a spouse has a “right of joint possession” in the principal matrimonial residence. NJSA 3B:28-3. In addition, a spouse has a claim of equitable distribution in all marital assets. NJSA 2A:34-23. Although the statutes appear to permit a non-titled spouse to release any and all rights in the other spouse's real property (NJSA 2A:34-23), the case law appears to favor the non-titled spouse when a dispute arises. Arnold v. Anvil Realty, 233 N.J. Super. 481 and Wamco v, Farrell, 301 N.J. Super. 73. The non-titled spouse's “right of joint possession” has priority over all other liens except purchase money mortgages. NJSA 3B:28-3.1. Accordingly, as a general underwriting guideline the company requires a non-titled spouse to join in a deed or mortgage by the title spouse, unless otherwise approved by state counsel. (Source: Stewart Underwriting Manual)

Reply by MW/VA on 6/28/10 2:54pm
Msg #342795

I was going to refer them to your website, Paul. I know you have the accurate info on the issue.

Reply by Bob_Chicago on 6/28/10 2:57pm
Msg #342796

Every state has laws which address the interest of a spouse

in real estate owned by the other spouse, where the name of the first spouse does
not appear on the title. These laws vary by state. Generally "Homestead" states (including Illinois ) provide that each spouse has an interest in the primary marital home.
If the laws of the state where the property is located, provide that a spouse , not on title<,has an interest in a particular parcel of real estate, even if their name is not on the title,
then the non-titled spouse must sign a document conveying the property (eg. deed) or creating a lien on the property (eg Mortgage) in order to release the non-titled spuse's interest in the property in the case of a deed, or make their interest in the propery suject to the lien in the case of a mortgage.
The specific dox that the non-titled spouse needs to sign to evidence their consent to the transacton are determined by the attoryneys/ title company involved in the transaction.
In the case of a mortgage, it is generally (as a minimum) the mortgage, mortgage riders, TiL and RTC.
In the case of a non-lien transfer, it is generally the deed or a separage doc which releases
the non-titled spouse's interest in the property.