Posted on: 11th Feb, 2009 05:21 pm
why would my bank insist my husband has to sign loan papers on house i bought with inheritance funds...i financed with them two years ago-same house as sole and separate property which husband signed quit claim deed only. now, during refinance, they insist on loan paperwork with his name all over it, despite the fact i requested and qualified for loan in my own name only. we have always had separate accounts-he has prior relationship commitments i want to stay clear of and since this is house bought with inheritance, i want to keep it clear of community property
If you are married and both of you live in that house, it is considered to be the marital home.
Different states have different requirements.
You may get a better answer if note what state the property is in.
For example, in New Jersey, if a married couple live in the subject property, it is the marital home. One of the spouses need not be on the mortgage, however, by NJ law they are both equal owners of the property. As such, lenders require the spouse who is not on the mortgage, to sign the mortgage anyway. By signing, they are not obligating themselves to pay the mortgage, because they do not sign the Note. By signing the mortgage they are giving up their rights to the property in the event of foreclosure--if you do not pay as required.
The spouse does not sign "all the mortgage papers", just a couple of papers at closing.
Once again, is it the marital home and what state is the property in?
Different states have different requirements.
You may get a better answer if note what state the property is in.
For example, in New Jersey, if a married couple live in the subject property, it is the marital home. One of the spouses need not be on the mortgage, however, by NJ law they are both equal owners of the property. As such, lenders require the spouse who is not on the mortgage, to sign the mortgage anyway. By signing, they are not obligating themselves to pay the mortgage, because they do not sign the Note. By signing the mortgage they are giving up their rights to the property in the event of foreclosure--if you do not pay as required.
The spouse does not sign "all the mortgage papers", just a couple of papers at closing.
Once again, is it the marital home and what state is the property in?
To follow up to what jveenstra said....If you are doing a Conventional loan and on the loan by yourself, then he should NOT have to sign paperwork, unless he is on title with you. If he is on title, then he is known as a non-obligated co borrower and would sign the DOT, NOTE, and some other documents. If this is an FHA loan, and he is on title, then the majority of lenders will require him to not only sign docs, but actually be ON the loan as well. States do differ somewhat in their requirements, so I would ask directly to your lender.
Another thing, is maybe the county never processed the quit claim. Have him resign if so.
Another thing, is maybe the county never processed the quit claim. Have him resign if so.
I live in AZ; my husband lives in another state due to his job; we've never lived together in this home, nor the previous one in VA. Both loans had title and loans as my sole and separate property. This is a conventional refinance loan, no special terms and is for $100K, a fraction of the house price-again, funds paid for it came right from my inheritance.
If the property is solely yours and your purchased it prior to your marriage with the money that you got from an inheritance, then the lender should not ask your husband to sign papers.
Agree. From what you are telling us - if you own the property as your "sole and separate property" and your husband signed the required disclaimer deed in AZ which was recorded, and if it's a convential loan - then your husband shouldn't have to sign anything.