Posted on: 01st Feb, 2010 06:30 pm
What is the definition for a non-borrowing spouse and which documents do they sign.
A non-borrowing spouse would be a spouse that is not on the new mortgage. It depends on the state. Some states don'y require them to sign anything others require them to sign the mortgage but not the note. They are just signing this acknowledging that thier spouse is taking on this debt.
the non-borrowing spouse is not responsible for making payments under the terms of the loan note.
exactly. its simply an acknowledgement.
of course a non-borrowing spouse would need to sign nothing if that spouse isn't also an owner. again, this depends on state law.
For the states that require a non-borrowing spouse to sign the Mortgage, they are requiring that signature to make sure the non-borrowing spouse gives up their right to the property in the event of foreclosure, just like the borrowing spouse.
So this would leave the mortgage lender with an uninhibited claim against the property should it have to be sold?