Posted on: 20th Jan, 2011 02:23 pm
Hi,
If a married couple owns a property as tenants by entirety, they're both on the title, both on the mortgage, and both on the Warranty Deed, are they equally responsible for the loan? Can one be on all of those and not the note?
If a married couple owns a property as tenants by entirety, they're both on the title, both on the mortgage, and both on the Warranty Deed, are they equally responsible for the loan? Can one be on all of those and not the note?
I can not speak for all states.
In NJ, one can be on all those and not the Note.
In such a case, the only reason the person not on the Note is on the Mortgage is to give up their rights to the property in the event of foreclsoure on the person who is on the Note.
The person(s) on the Note are responsible to pay the mortgage.
The person(s) on the Mortgage are having the Mortgage recorded and letting anyone know who searches the records that there is a lien on the property. The Mortgage does not obligate anyone to pay.
In NJ, one can be on all those and not the Note.
In such a case, the only reason the person not on the Note is on the Mortgage is to give up their rights to the property in the event of foreclsoure on the person who is on the Note.
The person(s) on the Note are responsible to pay the mortgage.
The person(s) on the Mortgage are having the Mortgage recorded and letting anyone know who searches the records that there is a lien on the property. The Mortgage does not obligate anyone to pay.
I agree with jveenstra, it will depend on which particular state are you in. There are different basis with regards in the processing of that matter.
Thanks for the answers. Here is a more specific question.
This is in Pennsylvania.
If someone refinances by taking out a new mortgage known as (Open - End Mortgage), and that is accompanied by a "Home Equity Line of Credit Agreement" document as part of the paperwork, is the Credit Agreement considered the note? And if both husband and wife are listed together on the mortgage, but only the husband on the "Home Equity Line Credit Agreement" document, then does this mean that latter document is the note and that he is solely responsible for the debt to the property? Can wife get out of paying?
This is in Pennsylvania.
If someone refinances by taking out a new mortgage known as (Open - End Mortgage), and that is accompanied by a "Home Equity Line of Credit Agreement" document as part of the paperwork, is the Credit Agreement considered the note? And if both husband and wife are listed together on the mortgage, but only the husband on the "Home Equity Line Credit Agreement" document, then does this mean that latter document is the note and that he is solely responsible for the debt to the property? Can wife get out of paying?
I am not a lawyer and you can not use my answer as definitive legal advice.
What you state seems to be correct. The HELOC Disclosure and Agreement is the promise to pay and if the wife did not sign, she is not obligated to pay.
However, if neither of you pay, the house could be lost through foreclosure.
What you state seems to be correct. The HELOC Disclosure and Agreement is the promise to pay and if the wife did not sign, she is not obligated to pay.
However, if neither of you pay, the house could be lost through foreclosure.