Why should I be taken off the deed during a refinance?

darmbrooks · Joined: 29 Oct 2008 Posts: 1 2.91 Dollars($)

My husband and I are refinancing - a FHA loan- the mortgage company wants to take me off the deed since his name will be the only name on the loan. Is this common. I am not comfortable with this. I was told I could do a quit claim deed after closing.

bearboysj · Joined: 25 Oct 2008 Posts: 42 17.02 Dollars($)

This sounds like a lender specific guideline - FHA does allow a non-borrowing spouse (and only the spouse) to be on title and not on the loan (note/deed) at close.

Posted: Thu Oct 30, 2008 5:53 am Post subject:

Yes, I would question them on this, especially if they said you could just deed it back after close - it all seems very unnecessary

Guest

The lenders wants me to sign a "Affidavit of Non-Borrower" to quitclaim deed to my husband. It states that the it is required that I sign the deed of trust or mortgage topledge my ownership interest to the property as security for repayment of the loan. then it says "i choose to nit sign the deed of trust or mortgage but instead will convey allmyownership interest to borrower (my husband). Then it says if i cnnvey all of my ownership in the property to my husband the i lose all rights in the property, now and forever. (FOREVER!!! im concerned). and finally it says, if i sign the deed of trust or mortgage i retain all of my current ownership rights to the Property. i will not become obligated to repay the oan but could losethe property to foreclosure if my husband does not pay. Is this legal? If i have to sign this will it be that simple to go to the court and add my name back on the deed.

Posted: Thu Oct 30, 2008 2:39 pm Post subject:

OK, so they're not making you sign a quitclaim deed - since you are in title to the property (on the deed) you need to sign the mortgage/deed of trust - you would not be obligated on the loan. If for some reason you didn't want to do that they would need you sign a quitcliam deed.

jameshogg · Posted: Thu Oct 30, 2008 10:35 pm Post subject:

Hi Darlene!

You can find the answer to your query in the given link:
http://www.mortgagefit.com/propertytransfer/affidavit-nonborrower.html #65498

Please take a look at it.

Thanks.

ashleyblanton · Posted: Fri Feb 13, 2009 3:54 pm Post subject:

FHA Guidelines require an person ON title to be ON the mortgage. I am assuming you are not going on the loan b/c you don't qualify for the best rate as opposed to if its just your husband? You will have to be signed off of title if you want to do the loan through FHA. Just have title prepare another deed putting you back on after close.

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