Can you be on a Deed of Trust for a home and not be an Owner?

Question

In Texas, my friend married a man that had purchased a home several years prior, with his first wife. Three years after the original purchase, be had another Deed and Deed of Trust done, releasing his ex-wife from all responsibilties for the home. About eight years later, after he and my friend were married, he told her he wanted to refinance the home and have his ex-wife removed (which we find out later had already been done) have my friend put on the home and refinance to get cheaper payments. A Deed of Trust, but no Deed were issued in both their names when they refinanced. Now they are getting a divorce and he is telling her that even though she is on the Deed of Trust, she has no ownership in the home. She has talked with three different divorce attorneys who tell her that this is possible. How could this be. My understanding was a Deed of Trust was held by a Trustee until the note is paid in full, at which time the Trustee releases the property to the borrower, which she is.

Answer 1

Yes it is possible. A deed of trust is a document that is used by lenders to secure the property as collateral. The deed you are thinking of is either a quit claim or grant deed. These are the documents that determine ownership. If you just signed the loan documents (note and deed) then you are bascially a guarantor that the loan will be paid. Unfortunately for you if he fails to make payments it will reflect on your credit. You should make it a stipulation through the divorce that he have to refinance the house out of your name.

i hope this helps.

Answer 2

Yes,you can be put on the deed and not have any ownership in the home.