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Hello! In contract to sell my home. Buyer is purchasing the home for his adult daughter. Inspections done, appraisal complete and now yesterday, a month after contracts have been signed, the buyer's attorney said wife will be on the mortgage and they would like to amend the contract to add her on there, as well. My lawyer seems to think this is fine, but wondering why the wife is being added so far along in the process. The guy was approved for 250k more than the purchase price of the home. Should I not see a preapproval for the wife? I don't see issue with adding her to the title, but to the mortgage? Also, should I see some sort of preapproval for the wife before I sign the amendment, or is this pretty normal and standard? Thanks!
Well, has the financing contingency been met? If yes, no worries at all.
At least in my state "It takes one to buy and 2 to sell." So I can buy a house all by myself, but if we wanted to sll, my wife has to agree. It's entirely possible - and based on your "preapproved for more" comment it sounds like they decided (either alone or based on advice from a financial pro) to add the wife as a borrower/buyer.
Thanks! No, the financing contingency has not been met, as of yet. When I asked why the father wants to add the mother now, I was told it had to do with him being retired and her not. Thinking, the father is having issues with the loan? That's all I was told.
I would defer to qualified legal advice, but will mention, this may not be any sort of negative move at all...
It may be to get title recorded as "Tenants by the Entirety."
This secures equal rights for husband and wife.
Should one die, the surviving spouse assumes sole ownership, full title without probate.
As discussed by a few closing attorneys in North Carolina, in a marital union, tenants in the entirety is the default.
Painting with a very broad brush, and again, I would defer to an NC attorney, or your NY attorney for finer points:
The marriage owns the property, or you may say, both partners in marriage own 100% of the property.
As Bo says, in NC it is common to say, "1 to buy, 2 to sell." It is an oversimplification, but holds some truth in transactions.
In my marriage, we own a house. Tenants in the Entirety.
Neither of us can sell our "share" to another party.
If my wife or I pass away, the survivor owns the house 100% by default.
If I would be sued successfully for a traffic accident, business malfeasance, personal injury, etc, that party cannot take the house away from the marriage due to my liability.
If your buyers plan to take title as Tenants by the Entirety, it is almost mandatory for the bank to make them jump through a couple of hoops.
Interesting, though, I see that addition done here without much discussion at all during the transaction process.
I would defer to qualified legal advice, but will mention, this may not be any sort of negative move at all...
It may be to get title recorded as "Tenants by the Entirety."
This secures equal rights for husband and wife.
Should one die, the surviving spouse assumes sole ownership, full title without probate.
As discussed by a few closing attorneys in North Carolina, in a marital union, tenants in the entirety is the default.
Painting with a very broad brush, and again, I would defer to an NC attorney, or your NY attorney for finer points:
The marriage owns the property, or you may say, both partners in marriage own 100% of the property.
As Bo says, in NC it is common to say, "1 to buy, 2 to sell." It is an oversimplification, but holds some truth in transactions.
In my marriage, we own a house. Tenants in the Entirety.
Neither of us can sell our "share" to another party.
If my wife or I pass away, the survivor owns the house 100% by default.
If I would be sued successfully for a traffic accident, business malfeasance, personal injury, etc, that party cannot take the house away from the marriage due to my liability.
If your buyers plan to take title as Tenants by the Entirety, it is almost mandatory for the bank to make them jump through a couple of hoops.
Interesting, though, I see that addition done here without much discussion at all during the transaction process.
Thanks, Mike! Yes, I am in NY. That could certainly be it. Makes sense!
But, should I ask to see some sort of preapproval from the wife before she is added to the mortgage app or not necessary? I have no info on her financials.
We had this exact situation with a co op apartment we sold years ago in DC. Dad was buying for the son. He didn't meet the board scrutiny for assets so they asked us to ask if the mom could be added to the loan. She was a physician (cant remember what dad did) and the board felt she was more stable financially. It didn't cause any issues with the loan once the dad agreed but he really was insulted and wanted to pull the offer. The kid wanted the place so eventually he relented.
Thanks, Mike! Yes, I am in NY. That could certainly be it. Makes sense!
But, should I ask to see some sort of preapproval from the wife before she is added to the mortgage app or not necessary? I have no info on her financials.
Well... I would leave that up to your attorney.
I assume you have your own attorney representing you?
Well... I would leave that up to your attorney.
I assume you have your own attorney representing you?
yes, I do....but, she is very slow to get any info. So, just wanted to get some additional info from the pros
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