How protected is the spouse whose name is not on the loan, but on the deed, if the other spouse just decides that they want out of the marriage without doing it legally, and not paying the loan any longer
2007-03-12 09:32:39 · 7 answers · asked by G M 1 in Business & Finance ➔ Renting & Real Estate
Added note: Our home is in Virginia
2007-03-12 11:06:09 · update #1
The person's name is on the loan is the only one who can refi. So, if that person leaves the house, they are responsible for the loan. If they default on the loan, then (a) their credit is ruined by (b) the lender can foreclose and take the house. Even if the then-resident is listed on the title.
The best thing to do is to sell the house. That way, the two owners (as specified by the title) get money. And the loan can be canceled.
It's a real challenge to a lender to change who the "lendee" is.
If someone wants to keep the house, then it's best to have the person leaving sell the house to the other.
2007-03-12 09:43:28 · answer #1 · answered by Jay 7 · 0⤊ 0⤋
The financially responsible spouse can refinance without the other spouse signing for it. However, both spouses share the value of the house because of the joint deed. If the financially responsible spouse stops paying, then the loan spouse's credit is damaged, not the deed spouse. If the bank forecloses on the property, then both spouses still collect on the proceeds of the sale but the loan spouse is the only one responsible to pay off. Thus, the deed spouse could argue that the proceeds of the loan would have to come out of the loan spouse's share of the proceeds. More likely is that the sale would pay off the loan and then both spouses would split whatever was left over.
As for the original question, the deed spouse could also take out a loan against the house, or refinance, by paying off the loan spouse's interest because. The deed spouse is a part owner and has that right.
2007-03-12 09:51:05 · answer #2 · answered by rac 7 · 0⤊ 0⤋
It can be done. If your name is on the deed you legally own the house. Send me an email and I can help you out. I am a loan officer with a Mortgage company who has seen this kind of situation before. Send me an email and I will send you my work contact information. I would post it on here but the last time I did that I got pranked called at work. If your serious about needing some help with this, then send me an email.
2007-03-12 09:38:19 · answer #3 · answered by Amber J 2 · 0⤊ 0⤋
The spouse whose name is not on the loan but is on the deed is totally protected as his/her credit cannot be damaged if the loan is not paid on time but the property cannot be sold without her signature as she is on the deed. Good luck.
2007-03-12 09:39:01 · answer #4 · answered by Akbar B 6 · 0⤊ 0⤋
She needs to consult a civil criminal specialist because those regulations variety a great deal state to state. in the journey that they are in a mutual possession state, she has rights to one 1/2 the marital resources, including, it style of feels, the recent homestead's fairness. for sure she is likewise accountable, unwittingly, for 1/2 of the criminal duty. they actually favor to artwork this out in a binding, criminal seperation settlement or she may nicely be in from so deep monetary problem. sturdy success!
2016-12-01 21:40:43 · answer #5 · answered by ? 4 · 0⤊ 0⤋
in IL, the spouse on the mortgage CAN refi, BUT at the closing, the other spouse needs to be there in order to sign some documents.
2007-03-12 09:37:58 · answer #6 · answered by Anonymous · 0⤊ 0⤋
When you're married in most states, it takes one to buy, and two to sell/refinance
2007-03-12 12:12:53 · answer #7 · answered by mgbendel 1 · 0⤊ 0⤋