Posted on: 30th Mar, 2009 08:35 pm
Why are mortage companies requiring spouses who are not on loans to sign quit claim deeds? I currently live in California and have a friend who was required to do this at the time her husband signed documents.
Your query has been answered in the given link:
http://www.mortgagefit.com/discuss/about1740-2.html#85838
Please take a look. I hope it'll help you.
http://www.mortgagefit.com/discuss/about1740-2.html#85838
Please take a look. I hope it'll help you.
is the mortgage company asking your spouse to sign a quitclaim deed or an interspousal deed? the mortgage companies may ask your spouse to sign an interspousal deed so that he/she does not have any claim on the property. if you default on the mortgage, they can foreclose the property and recover the dues. they will not have to satisfy the claims of your spouse regarding the property.,
thank you for your response, it was definately a quit claim deed, if signing either of these deeds does not release a party from debt on a mortgage and if only one spouse in on the loan, how then can the other spouse prevent a mortgage co. from forclosing if payments are not received? it is my understanding that a judge cannot award a house to one party or the other as long as a mortagage is owed and that just forces a sell of property or a refinance thereby allowing any equity to be split between spouses.
is there a law in place allowing loan institutions to require a spouse who is not on the loan to sign an interspousal deed or quit claim deed in order for the loan to be processed? thank you for help.
thank you for your response, it was definately a quit claim deed, if signing either of these deeds does not release a party from debt on a mortgage and if only one spouse in on the loan, how then can the other spouse prevent a mortgage co. from forclosing if payments are not received? it is my understanding that a judge cannot award a house to one party or the other as long as a mortagage is owed and that just forces a sell of property or a refinance thereby allowing any equity to be split between spouses.
is there a law in place allowing loan institutions to require a spouse who is not on the loan to sign an interspousal deed or quit claim deed in order for the loan to be processed? thank you for help.
Hi cameo!
Welcome to forums!
As far as I know, this is not a law which makes it mandatory for the spouse to sign a quitclaim deed or an interspousal deed. However, there are some lenders who want the spouse to sign a quitclaim deed or an interspousal deed if he or she is not on the mortgage. This will help the lenders to safeguard their interest.
Sussane
Welcome to forums!
As far as I know, this is not a law which makes it mandatory for the spouse to sign a quitclaim deed or an interspousal deed. However, there are some lenders who want the spouse to sign a quitclaim deed or an interspousal deed if he or she is not on the mortgage. This will help the lenders to safeguard their interest.
Sussane