Posted on: 05th Mar, 2009 07:45 am
My wife and I have remodeled our house and are in the process of refinancing to consolidate the Original Mortgage and the construction loan. I owned the house before we were married and I am the only one on the title. Why would the Title company need me to sign a quitclaim deed in order to do the new paperwork with my wife's and my name on it?
Hi Chip,
It seems that you live in a community property state. Right?
Well, In that case your wife has a community interest in the property as per the Moore Marsden Rule. The rule states that even if you brought the property prior to your marriage using money from your own pocket, but made payments from the community funds during marriage, your spouse will be entitled to a community interest (also known as Moore Marsden Interest). This is why the lender wants you to quitclaim the title to you and your wife so that both of you are on mortgage as both have an ownership interest in the property.
It seems that you live in a community property state. Right?
Well, In that case your wife has a community interest in the property as per the Moore Marsden Rule. The rule states that even if you brought the property prior to your marriage using money from your own pocket, but made payments from the community funds during marriage, your spouse will be entitled to a community interest (also known as Moore Marsden Interest). This is why the lender wants you to quitclaim the title to you and your wife so that both of you are on mortgage as both have an ownership interest in the property.