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Old 04-03-2010, 08:34 AM
 
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Married, purchasing house soon and DON'T want put name on morgage but DO want name on title/trust deed. How do I go about doing that?
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Old 04-03-2010, 04:18 PM
 
Location: southwest TN
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You don't. No mortgagor will give a mortgage unless ALL owners are party to the mortgage.
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Old 04-03-2010, 05:20 PM
 
Location: Memphis, Tn ~ U.S.A.
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Quote:
Originally Posted by deb7mem View Post
Married, purchasing house soon and DON'T want put name on morgage but DO want name on title/trust deed. How do I go about doing that?
Easy, put the house in a trust

Put you Wife as trustee with you being beneficiary of the trust

You should be able to hire a Trust Attorney and have him/her set this up for you for around $1,200-$1,500 on a simple trust like this

Oh, I just noticed your trying to get a mortgage(I wrote a check for my house ) I'm not sure how you will manage to get a loan w/out signing for it, but hire an attorney and they may be able to find a way
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Old 04-06-2010, 09:03 AM
 
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It can and is done....assuming you qualify for the loan entirely on your own - without your spouse's income. The mortgage would be in your name (although your spouse will probably be required to sign the note as an owner of the collateral). Both of you would be on the Warranty Deed (or Quit Claim Deed). Both of you would be on the Deed of Trust - you as the borrower/property owner, your spouse just as another owner of the collateral. Ownership would be joint, but only you would be obligated on the mortgage. While your spouse wouldn't technically be responsible for the mortgage, obviously he would have to pay if off if something happened to you or the mortgage lender would foreclose.

It's not too common, but there are circumstances where someone must sign as an owner of the collateral, but are not obligated on the Note. One example would be if I added my son as an owner of my house with a Quit Claim Deed. If I wanted to make a loan with the house as collateral, he wouldn't have to be an applicant - but he would have to sign giving his permission to encumber the property.

Last edited by JoeCartpath; 04-06-2010 at 09:12 AM..
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Old 04-06-2010, 09:15 AM
 
Location: southwest TN
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Of course this makes sense to John the Banker:

2 people own the property, one gets a mortgage and only one is obligated to pay back the mortgage. (see the highlighted in red). John the Banker thinks this is wonderful: Person dies or otherwise stops paying the mortgage and the other property owner is not responsible to pay it back! So John the Banker gets to foreclose on only 1/2 the property!?! Are you serious? or delirious?

Is a NOT TECHNICALLY the same as not legally? Can you take someone to court to get back the money you have loaned? If so, do you get a technical judgment instead of a legal judgment? Does the person pay back the mortgage with technicals instead of legal tender?

What happens when the spouse has a judgment against him/her? Does the person get to force the sale of the house to satisfy the judgment?
OR, better yet, does this OTHER spouse get to have his or her own mortgage? Yippee, each owner can have their own mortgage on the same property! and NOT BE obligated to pay off the other mortgage. So, let's see, they both have a mortgage for 50% of the equity and each decides not to pay on their mortgage. Since the other is NOT REALLY obligated to pay off the spouse's mortgage, they get to own the house without any mortgage.


Quote:
Originally Posted by JoeCartpath View Post
It can and is done....assuming you qualify for the loan entirely on your own - without your spouse's income. The mortgage would be in your name. Both of you would be on the Warranty Deed (or Quit Claim Deed). Both of you would be on the Deed of Trust - you as the borrower/property owner, your spouse just as another owner of the collateral. Ownership would be joint, but only you would be obligated on the mortgage. While your spouse wouldn't technically be responsible for the mortgage, obviously he would have to pay if off if something happened to you or the mortgage lender would foreclose.
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Old 04-06-2010, 09:36 AM
 
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Let me explain....

Quote:
Originally Posted by NY Annie View Post
Of course this makes sense to John the Banker:

2 people own the property, one gets a mortgage and only one is obligated to pay back the mortgage. (see the highlighted in red). John the Banker thinks this is wonderful: Person dies or otherwise stops paying the mortgage and the other property owner is not responsible to pay it back! So John the Banker gets to foreclose on only 1/2 the property!?! Are you serious? or delirious?

If two people are on the deed, they each own the entire property jointly - they don't just own 1/2 of the property. So yes, the mortgage holder forecloses on the entire property if there is a default on the mortgage/Deed of Trust. That's the danger of this situation. If the OP were to die (for example), there is no longer anyone obligated on the mortgage....and death is always listed as one of the terms of default. That means the spouse wouldn't be able to just continue paying...he would have to satisfy the mortgage by paying in full or by refinancing in his name in order to keep the property.

Is a NOT TECHNICALLY the same as not legally? Can you take someone to court to get back the money you have loaned? If so, do you get a technical judgment instead of a legal judgment? Does the person pay back the mortgage with technicals instead of legal tender?

In this case, you're not loaning any money to the spouse - only to the OP. You can't sue the spouse for the money owed....but you can foreclose on the property in which he gave you an interest - unless the mortgage holder was willing to refi the mortgage in the spouse's name (maybe his credit improved over time).

What happens when the spouse has a judgment against him/her? Does the person get to force the sale of the house to satisfy the judgment?
OR, better yet, does this OTHER spouse get to have his or her own mortgage? Yippee, each owner can have their own mortgage on the same property! and NOT BE obligated to pay off the other mortgage. So, let's see, they both have a mortgage for 50% of the equity and each decides not to pay on their mortgage. Since the other is NOT REALLY obligated to pay off the spouse's mortgage, they get to own the house without any mortgage.

You can't force the sale of a house to satisfy a judgment. You can place a lien that must be satisfied if the house is sold, but you can't force a sale.

Your example is silly. If there were two mortgages, and both were in default, then BOTH of those mortgage holders would be able to foreclose. Whichever was recorded first would be the first mortgage holder, the other would be second mortgage. The second mortgage holder would be in the weakest position. If the first mortgage holder foreclosed, they would be under no obligation to bid enough to pay the second mortgage...that mortgage holder would have to bid enough to protect his interest. If the second mortgage holder initiated the foreclosure, they would be obligated to pay off the first - and would have to bid accordingly.
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Old 04-06-2010, 10:08 AM
 
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Here's another example of when this might happen.

John and Mary (sibilngs) buy a house jointly when they're young and single. Later on, Mary gets married and moves out....and John stays there and makes the payments himself. 10 years later, John wants to get a second mortgage to repair his roof. He qualifies for the loan on his own, so the lender cannot require a cosigner....but, since there is another owner of the property, the lender can require that the other owner sign giving their permission to encumber the property.

When I said the other signer is "technically" not obligated for the mortgage, that was an attempt to explain the concept - not to be semantically correct.

The other signer is NOT obligated on the mortage at all. In practical terms though, he does have a vested interest in whether or not the mortgage is paid....assuming he wants to protect his ownership interest in the property.
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Old 04-06-2010, 10:47 AM
 
Location: southwest TN
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So you are suggesting that this married couple take possession of the house as Tenants in Common - and you believe that John (the banker) is going to allow spouse #1 to own, free and clear, 50% of the property and spouse #2 gets to mortgage the other 50%?
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Old 04-06-2010, 11:03 AM
 
Location: Destrehan, Louisiana
2,189 posts, read 7,053,438 times
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Quote:
Originally Posted by NY Annie View Post
You don't. No mortgagor will give a mortgage unless ALL owners are party to the mortgage.

You are wrong. My house and mortgage are in my wife's name only because she had better credit when we purchased.

I had to sign a release paper allowing the house and mortgage to go in her name.


busta
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Old 04-06-2010, 11:08 AM
 
Location: southwest TN
8,568 posts, read 18,112,482 times
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Your statement, without qualification, is absolutely not true. You absolutely CAN force the sale of property to satisfy a judgment, depending upon the type of tenancy.

"In almost every US state it is possible for a judgment creditor to request a forced sale of property to which a lien has been attached.


...there are many factors that could prevent a forced sale of a primary residence.
For example, Texas is one state where statutory law forbids the sale of a homestead. Other states do not allow such a sale if it is marital property held as Tenancy By The Entirety and only one spouse is the debtor, and so on and so on. "


Quote:
Originally Posted by JoeCartpath View Post
Let me explain....
You can't force the sale of a house to satisfy a judgment. You can place a lien that must be satisfied if the house is sold, but you can't force a sale.[/quote]



Property ownership - what are the common forms?
WikiAnswers - Can a lien be used as a forced sale of property
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