Posted by lindalee on 4/1/11 4:55pm
Msg #378358

clear explanation

what does it mean when there is one signer on the Deed of Trust and two on the note and all other docs?

Reply by James Dawson on 4/1/11 5:03pm
Msg #378362

First I would say the Docs are mislabled but then, we should pass this off to the site's experts..

Reply by Sylvia_FL on 4/1/11 5:12pm
Msg #378364

Hmm this question has been asked several times in the past.
Appears to be a test question.

Reply by LKT/CA on 4/1/11 5:16pm
Msg #378366

I've seen the reverse - two people on the DOT and one person on the note. Who'd be on the note (accepting financial responsibility) with no benefit of Title to the real property? I certainly wouldn't...

Reply by bob/IA on 4/1/11 5:28pm
Msg #378367

A co-signer? Like LKT I have seen 2 on mrtg and one on note, never the other way around

Reply by Moneyman/TX on 4/1/11 7:06pm
Msg #378370

Same here Lisa. So does it mean that the answer to the OP is that they need to call the TC about the situation?

Reply by LKT/CA on 4/1/11 7:53pm
Msg #378371

If the borrowers is asking then yes.....if the Notary is curious (and for their own enlightenment) they could probably Google it. .

Reply by BrendaTx on 4/1/11 8:27pm
Msg #378375

That is a test question that used to be

asked every other week in the...ah...the good ol' days.

Reply by Ilene C. Seidel on 4/2/11 6:44am
Msg #378382

Were the signers on the note married? or related? I've had two closings like this in Baltimore. The second signer wasn't on title but signed the note. The couples were married.

Reply by DD/OR on 4/2/11 8:56am
Msg #378384

I remember doing one like that years ago. Both husband and wife were on the note but just the husbands name was on the Title. I remember the wife was very upset. She was angry. The husband talked to her and she calmed down. I think the husband was pulling a fast one on her. To my surprise she finished signing. There are so many gullible woman out there that are taken advantage of. I haven't seen that kind of scenario since then, thank goodness.

Reply by James Dawson on 4/2/11 10:54am
Msg #378389

to be fair...I have seen the opposite also!

I do a lot of loans for families from the middle East (India example) where the Title is always held in just one of the spouses name, usually the male. I tend to believe it's a cultural thing.

Of course for us here? I bought my fist house when I first got out of the military, seven years before I got married, My name alone was on that deed until I sold it, 11 years later. My wife didn't have an issue with it.

Reply by notarydi/CA on 4/2/11 12:23pm
Msg #378394

it's been a while, but I think that's how you do it when one borr does not qualify for the loan or basically makes the loan worse (for lack of a better term) with that person on it. So, they are obligated thru the note, but, not the deed security instrument that you use in selling the loan. You would have a more saleable loan with just the one qualifying borr. on it. anyway, i think i'm remembering it correctly.

Reply by MikeC/NY on 4/2/11 3:58pm
Msg #378404

I think you have it backwards. If one borrower has bad or shaky credit, they will often not be on the loan (and therefore will not sign the note); since they are on title, they still have to sign the mortgage or DOT.

A situation where there's only one signing the mortgage or DOT but two signing the note probably means the second person is co-signing the loan. If the loan defaults, the lender can foreclose on the property and then go after the co-signer if there's a deficiency they can't collect from the person on title.

Reply by JanetK_CA on 4/2/11 8:56pm
Msg #378414

I agree, Mike. I can only remember running into the situation mentioned by the OP one time. In that case, both the husband and wife were well-to-do professionals and each owned property separately, in addition to their home, which was what we were refi-ing. There was more to it, but it was none of my business and I didn't ask. However, they clearly both seemed to know exactly what was going on and didn't have a problem with it. I can only surmise that it had something to do with an agreement of some sort that they had worked out between them. I was mighty curious, but again, none of my business.

Reply by tony1994CT on 4/3/11 1:22pm
Msg #378425

Janet you are correct .
Husband and wife do this sometime for estate planning purpouses

Reply by lindalee on 4/4/11 11:17am
Msg #378493

thanks for all the replies! I was pleasantly surprized by the response and now grateful that NR has this forum. I guess there is just more then one answer (as usual) but basically the person on the deed is recorded as the owner and the note signers are invested. Linda M