Posted on: 06th Sep, 2009 11:50 pm
I bought my home in California (a community propertty state) as a single man and have held title as my sole and separate property during the course of my marriage.
I disclosed this to my current mortgagor and was offered a refi. I alone signed the refi mortgage (as "my sole and separate property") and deed of trust with a notary.
Subsequently, after I supposedly closed, I was told that they would only offer me the loan if my wife signed a deed tranferring any interest she may have to me (which she refused to do) or if I placed her on title ) which I don't want to do).
I was totally caught off guard on this and think this was a deceptive practice. (My wife offerred to sign a deed of trust, but the bank refused.) I was told by the title company that there was a law requiring this, but I could not any such law. Do you know of such a law, or is the bank acting improperly?
Jack Hain
I disclosed this to my current mortgagor and was offered a refi. I alone signed the refi mortgage (as "my sole and separate property") and deed of trust with a notary.
Subsequently, after I supposedly closed, I was told that they would only offer me the loan if my wife signed a deed tranferring any interest she may have to me (which she refused to do) or if I placed her on title ) which I don't want to do).
I was totally caught off guard on this and think this was a deceptive practice. (My wife offerred to sign a deed of trust, but the bank refused.) I was told by the title company that there was a law requiring this, but I could not any such law. Do you know of such a law, or is the bank acting improperly?
Jack Hain
California is a community property state and thus, the lender may ask your wife to sign a property deed in order to clear off all her interests in the property. If you had purchased the property before marriage, then I don't think the lender should ask your wife to sign a property deed as it would be considered your separate property. It would be a good option to contact an attorney and get his opinion in this regard.
Hi jhain,
Welcome to our forum.
If you want to keep property only on your in comminity property state of california so you have to buy is before your marriage. After your marriage lender will ask to your wife to sign a property deed so you have to do it before marriage & as Niccs say get help of your attorney to keep up your further proccess.
Thanks & Regards.
gunz.ijjistaff.
Welcome to our forum.
If you want to keep property only on your in comminity property state of california so you have to buy is before your marriage. After your marriage lender will ask to your wife to sign a property deed so you have to do it before marriage & as Niccs say get help of your attorney to keep up your further proccess.
Thanks & Regards.
gunz.ijjistaff.
Thanks for your responses. Yes, the property was purchased while I was single. Under community property law, my wife has obtained an interest equal to 1/2 of amounts we paid off on the principal of the loan during the marriage (along with a slight percentage of appreciation of the value of the home during that time.) The total community proeperty interest she has is about $30,000 to $40,000 on a house worth over $500,000.
It seems that a deed of trust signed by her in favor of the bank would protect the bank's interest from any claims she may have in the property in the event of foreclosure. I just don't see any reason to add her to title, as they are demanding and I think it is an unfair practice.
Anyone know of any applicable rule, laws or regulations, or have any ideas or opinions ?
It seems that a deed of trust signed by her in favor of the bank would protect the bank's interest from any claims she may have in the property in the event of foreclosure. I just don't see any reason to add her to title, as they are demanding and I think it is an unfair practice.
Anyone know of any applicable rule, laws or regulations, or have any ideas or opinions ?
Hi jack,
The lender may want your wife to sign a deed to transfer the property to you as it has become a community property. The lender will not be able to foreclose the property as your wife and you are the owners of the property whereas you are the borrower of the loan. In such a situation, if they foreclose the property, they will have to pay back a certain portion of the sale price to your wife. In order to avoid this, the lender wants your wife to sign a property deed and give away her ownership rights to you.
Thanks
The lender may want your wife to sign a deed to transfer the property to you as it has become a community property. The lender will not be able to foreclose the property as your wife and you are the owners of the property whereas you are the borrower of the loan. In such a situation, if they foreclose the property, they will have to pay back a certain portion of the sale price to your wife. In order to avoid this, the lender wants your wife to sign a property deed and give away her ownership rights to you.
Thanks