Posted on: 04th Mar, 2009 04:02 pm
My wife and I disagree on this form. I believe that by signing it gives away all of the non borrowers rights to the property to the lender. she however believes that it is just a formality form. Any input/ real info or direction would be helpfull.
Hi Brett,
It's true that when you sign an affidavit of non-borrower you actually give up your property interest. This is required for the lender as it ensures that the lender recovers the debt amount if the property is foreclosed. If you do not sign and remain on the title, you may claim your interest when the property goes into foreclosure which can prevent the lender from recovering the mortgage amount. This is done keeping the lender's interest in mind in case of a default.
If you do not sign the affidavit and want to remain on the title along with your spouse, you need to sign the loan agreement as a co-borrower and be responsible for the mortgage payment.
Thanks,
Jerry
It's true that when you sign an affidavit of non-borrower you actually give up your property interest. This is required for the lender as it ensures that the lender recovers the debt amount if the property is foreclosed. If you do not sign and remain on the title, you may claim your interest when the property goes into foreclosure which can prevent the lender from recovering the mortgage amount. This is done keeping the lender's interest in mind in case of a default.
If you do not sign the affidavit and want to remain on the title along with your spouse, you need to sign the loan agreement as a co-borrower and be responsible for the mortgage payment.
Thanks,
Jerry
So the lender is protected in the event the loan is defaulted on and the property goes into foreclosure.
But what happens if (a) the borrower dies or (b) the borrower divorces the non-borrower? Does the non-borrowing spouse have any rights to the property whatsoever?
But what happens if (a) the borrower dies or (b) the borrower divorces the non-borrower? Does the non-borrowing spouse have any rights to the property whatsoever?
hi sue!
welcome to forums!
if the borrower dies, then the borrower's heirs can refinance the property in their name and take over the mortgage payments.
if the non-borrowing spouse has his/her name on the property deed, then he/she can claim a portion of the property from the borrower. moreover, the divorce settlement will also specify how the property will be divided.
feel free to ask if you have further queries.
sussane
welcome to forums!
if the borrower dies, then the borrower's heirs can refinance the property in their name and take over the mortgage payments.
if the non-borrowing spouse has his/her name on the property deed, then he/she can claim a portion of the property from the borrower. moreover, the divorce settlement will also specify how the property will be divided.
feel free to ask if you have further queries.
sussane