Posted by AZsigningZ on 11/23/10 4:34pm
Msg #362576

Subordination & Disclaimer Deed

Mr. Borrower who is legally separated from his wife in Arizona is refinancing a home with a first and second loan (apparently there is a subordination agreement for the second loan but it is not in loan package.) Wife in Arizona (community property state) is to be signing a Disclaimer Deed to put him on title as sole and separate property and sign marital docs. Wife is under the impression the 2 loans were going to be combined into 1 loan, taking her name off both loans so she can refinance the house she is in. If she signs the Warranty Deed can she still be held financially responsible for that second loan?

Reply by JanetK_CA on 11/23/10 4:44pm
Msg #362578

Sounds like an attorney question to me. I'd stay out of it. n/m

Reply by Bob_Chicago on 11/23/10 4:46pm
Msg #362579

Probably, BUT you should not be the one to tell her. N/M n/m

Reply by Linda_H/FL on 11/23/10 4:48pm
Msg #362580

If she signed the Note for that second mortgage then merely being removed from title does not absolve her of the responsibility to repay that loan - perhaps there's some modification in the works getting her out of the loan or, in AZ, maybe a court order can dissolve her liability. Not sure about that.

Personally, I think she needs to speak with a divorce/family attorney who can advise her as to her lingering responsibility - seems separated people and refinances don't always see eye to eye..

Reply by AZsigningZ on 11/23/10 5:13pm
Msg #362584


I felt for this borrower she is very sick and her husband was on phone screaming cursing at her to sign the documents telling her she was going to screw up this whole deal, this borrower was physically shaking and crying so much she actually asked me to call 911 if she had a panic attack, she finally handed the phone to me and I had to tell him I can not and will not make her sign ANYTHING. You could tell she is afraid of him. Yep sounds shady needless to say she did not sign, I did tell her to contact an attorney she just cried and said she could not afford it. ( I did want climb thru that phone and knock him out though, funny how his name is still on the house she is in what a JERK.)

Reply by Ronnie_WA on 11/23/10 5:29pm
Msg #362587

Refer her to the holder of the 2nd that is being subordinated. They can answer her question free of charge, saving her the cost of an attorney.