Name Not On Mortgage but On the Deed

 

“Name Not On Mortgage But On The Deed! Both parties appear on the deed and mortgage when a couple owns real property. In some instances, only one spouse handles paying the mortgage.”

Mortgage and Deed

 

Although this doesn’t happen very often, it can complicate things during a divorce. What is the right of each party? If mortgage payments are not made, who will remain in debt? Does one of us still have the right to live there? In the event of a refinance, do we have to do so?

 

The name appears on the deed but not on the mortgage.

The home is yours if your name is on the deed. You will find a description of the ownership interest on the deed itself. There are several ways in which people can own real estate in California: Like Sole Ownership, Tenants-in-common, Joint tenants, Joint tenants with right of survivorship, and Tenants-by-the-entireties.

Tenants-by-the-entireties are the most common type of property ownership for married couples. After the death of one spouse, the other spouse gets the interest in the property. If your names appear on the deed, you own the property if one of you dies.

You are not liable for the mortgage loan if you do not have a mortgage. However, if your spouse dies, you inherit their interest in the property. The mortgage lender can evict you if you default on mortgage payments.

 

Who handles making payments on the home if my name is on the deed but not the mortgage?

The mortgage payment is usually the responsibility of the spouse who signed the mortgage. This can happen if both spouses sign the deed but only one signs the note and mortgage. A mortgage company can foreclose on and sell the property if the mortgagee (the spouse who signed the letter and mortgage) fails to make payments as agreed.

 

Does it matter when my name appears on the deed?

Usually, you and your spouse own the property after the lender is paid in full if you and your spouse were added to the deed after signing the mortgage and note. Lenders usually have liens on houses. So if the spouse whose name is on the mortgage does not pay, the bank can foreclose to recover their money. Since your name is in the deed after the house owes you money, it will not matter if your name appears on the deed or not.

The wife’s name may trigger a “due on transfer” clause if she adds or removes her name from the deed after signing the note and mortgage. When the mortgage company demands payment in full, the mortgage is due in full. Review the contract signed when you took out the loan with the mortgage company.

 

The name was on the deed before you took out the mortgage.

Normally, the bank can only foreclose on your spouse’s share of the home if your name is on the deed before you took out the mortgage. You own the house to the extent that your name appears on its deed. Because you did not transfer your interest to the bank, the bank cannot foreclose. As a result, you still own a share of the home.

It is rare for a mortgage company to grant a mortgage only to one spouse if the deed already entitles both parties to the property. You can expect that if your spouse defaults on the mortgage. The mortgage company will not want to deal with problems getting their money back. All owners will likely have to sign the mortgage, or the lender will not give the loan.

During the subprime lending frenzy, many mortgage companies wrote mortgages without getting all owners’ signatures. As a result, the lender has no full interest in the property. The lender will only have the interest of the person who signed the mortgage (your spouse).

 

Determining who owns your home

By the kind of ownership interest, they chose when they purchased the property. Whoever is listed as the owner or owner of the home owns the home. Mortgage lenders have a secured interest in the property and can start foreclosure action on the property. And sometimes on the mortgagee if the mortgage is late.

According to the Deed, the people listed own the home. But we need extra steps if one party wishes to remain in the house or divide the equity. There are generally three options available to divorcing couples in Pennsylvania:

  • Under the property settlement agreement, sell the property and divide the proceeds;
  • The other spouse will execute a quit claim deed if the property undergoes refinancing in the name of the spouse who will live there;
  • Maintain a mortgage with one spouse living on the property, with no changes to the mortgage or deed.

The primary custodial parent will continue to live in the marital home to keep the children in the same school district. In contrast, the other parent will pay the mortgage through court-ordered support payments.

 

What should you do if your spouse’s name is not on the mortgage?

Your spouse is not responsible for paying the mortgage if they are not on it. Mortgage lenders can but foreclose on a house if payment does not reach them.

 

Mortgage Lenders

 

Mortgage Holder vs. Title Holder

Transferring a deed is the process of acquiring ownership of real property. The transfer of title is necessary to get the right to vehicles such as cars and boats. The title to a vehicle is not yours if you owe money on a loan. The lender retains ownership of the vehicle until the loan is repaid. You cannot sell your vehicle until you receive your title from the lender and pay off your vehicle loan.

A mortgage, however, gives your mortgage lender a lien on your property even if you have the deed. If your real estate sells before those liens are satisfied, then liens will be paid out of the seller’s payment when the sale occurs, and you will receive the rest of the sale proceeds.

 

Is your spouse entitled to half your house if it’s in your name?

It’s possible. Your couple’s unique financial situation will determine your decision. According to California law, divorcing parties receive “fair” shares of the marital assets, not “equal” shares.

 

Could a person’s name appear on a deed and not for the mortgage?

Name Not On Mortgage But On The Deed A person’s name may appear on a deed without being on a mortgage. But, doing so entails ownership risks since the title has potential encumbrances and liens. Having a free and clear title means the owner is the only person with rights to the property. To ensure everyone on the label is safe, it is best to work with the lender if a mortgage exists.

 

Quitclaim versus Grant Deed

The quitclaim deed releases ownership, giving up some or all interest in the property. The county issues a new title deed when a notarized quitclaim deed goes on the record. But, this deed does not include any warranties. The warranties ensure that the ownership interest is accurate and enforceable. There is no guarantee without a proper title search.

Deed holders release interest in a property by issuing grant deeds in exchange for payment – the property sells. Most sales should include a review of all title claims and a discussion of mortgages. Besides, if the deed arose, the new title holder could have an ownership interest. At the same time, the original deed owner remains liable for the mortgage.

Transfer on Death deeds in California are revocable but avoid probate. As the next-of-kin can get the property. When the primary owner dies, this adds a name to the act, which becomes effective after death.

 

Assumptions of mortgages

New deed holders may not be wise to refinance their property. If the loan terms are favorable or their credit is poor. “Loan assumption,” asks the lender if the new deed owner can assume the mortgage.

Children often move in with aging parents and take over household maintenance and payments. Lenders generally prohibit assumptions in loan contracts. But you should discuss your situation with them. A mortgage that allows assumptions will likely underwrite the new owner and may even need a lump sum payment upon sale. It is not common for lenders to assume that a new owner will be able to repay the loan.

 

Common scenarios

Families are generally comfortable changing ownership but not the loan in quitclaim deed scenarios. The use of quitclaim deeds in family situations is common when a new spouse joins the title, the property will be a gift to children, or a relative comes to assist an elderly family member with household management tasks. Due to their full confidence in the person quitting ownership, the child or spouse may be comfortable with no warranties.

 

Can you add someone to a mortgage?

In most cases, you cannot add a second person to your mortgage. When you purchase a home, you and your lender enter into a mortgage agreement. You agreed to repay the bank over 30 years in exchange for a monthly mortgage payment and interest. Based on your income, credit, and employment history, the bank calculated this interest rate and approved you for the loan. It is possible that the mortgage terms would have been different if you had originally applied with two people.

But, you do not have to worry if you have two names on a deed and one on a mortgage. Most lenders will not let you add a third party to your mortgage, but they will allow you to refinance it in both names. When you refinance, you take out a new mortgage with your lender to cover the balance of your current mortgage.

You and the new person will appear on the new mortgage, which will likely have different terms than the original. The old mortgage is satisfied by paying off the old mortgage with the new mortgage funds. This leaves you with an entirely new mortgage agreement listing both parties. A refinance costs between two to five percent of the loan amount.

 

What happens if your name appears on the mortgage but not the deed?

You are not the property owner when your name appears on the mortgage but not on the deed. Your role on the mortgage is merely that of a co-signer. Because your name appears on the mortgage, you are responsible for making the payments on the loan, just like the property owner. Without actually owning the home, you have all the homeowner’s responsibilities. There are several reasons why having only one spouse on the deed is bad.

The biggest issue arises when the deed’s holder dies. When both spouses’ names appear on the deed, the home passes to the other spouse. The situation is different if only the deceased spouse’s name appears on the deed. Instead, the home will transfer under the deceased individual’s will or intestacy laws. It is possible that the surviving spouse will not inherit the house in some cases.

 

FAQs

  1. What can you do if you are married & the house is not in your name?

Being in this position is not helpful. A divorce will determine whether the home is marital property or individual property. The surviving spouse can’t inherit the property directly after the death of the named spouse.

 

  1. I am getting divorced, with only a mortgage in my name. What happens?

Home acquisitions made before marriage may be considered individual property and not subject to division. The property is generally community property if obtained during the marriage, regardless of who holds the mortgage and deed. In the separation agreement, both spouses should agree.

 

  1. Can a married couple buy a house in only one person’s name?

Yes, a spouse can purchase and list a home in only one name. Despite this, New York is a communal property state in the context of a divorce. When dividing property in a divorce, both spouses own the property obtained during the marriage.

 

  1. What happens if I die and my wife is not on the mortgage?

Mortgage payments will fall on the estate of the deceased in this case. To avoid foreclosure, the estate must make a monthly payment. Banks usually refinance homes in the names of surviving spouses.

 

Talk with an Experienced Divorce Attorney

A couple’s biggest marital asset is usually real estate. Choosing how to divide pensions and whether to continue financial support after divorce may be the most important financial decision a couple makes.

Regardless of who is on the deed and the mortgage, we know what it takes to get you the settlement you deserve. Let us assist you with your California family law needs when Name Not On Mortgage but On the Deed with over fifty years of experience.