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Forced to Add Spouse to Mortgage

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  • 07-13-2010, 11:32 AM
    joaniejefferson
    Forced to Add Spouse to Mortgage
    Hi

    I purchased my home 10 years ago, at that time my husband had no income and the finance company refused to let him sign onto the mortgage because of his lack of income. His name was entered onto the Title. We thought there was nothing wrong with this action as at the closing of the property all parties were there including a Title company and no one objected to anything. Now 10 years later, we are getting served papers saying my husband must sign onto the mortgage as he'll retain the property at the event of my death without having to continue the mortgage payments because he is not listed on the mortgage and this is not in the Lender's best interest. At this time we are in a Chapter 13, and my attorney has contacted the Lender.

    My question is can my husband be forced to sign onto the mortgage? We've been told yes and no. We've also been told that a Judge could force my husband off the Title if he doesn't sign or force his name onto the mortgage as a clerical error at the time of closing that should have been corrected.



    Please advise anyone

    Michigan residence
  • 07-15-2010, 11:23 AM
    Mr. Knowitall
    Re: Forced to Add Spouse to Mortgage
    If the finance company wouldn't let your spouse be on the mortgage, it was presumably because of a lot more than bad credit. That will raise the interest rate on the loan, so of itself that doesn't much bother lenders. Odds are he had liabilities that they feared would attach to the residence.

    I have no access to the documents or contracts you signed in association with the mortgage, but odds are you agreed that your spouse would sign a waiver allowing the lender to proceed with foreclosure in the event of your default. If so, and they are now enforcing that contractual provision, their prior oversight doesn't make t go away. Odds are you agreed that your breach of the contract would be grounds for their accelerating the loan or foreclosing. Read your contract and tell us what it says.

    Presumably the people who have been advising you have access to the title history and loan documents, whereas we do not. It makes sense for you to follow the advice of a lawyer or real estate professional who knows the full facts, as opposed to trying to get advice in an online forum where people have to guess about some potentially highly relevant facts.
  • 07-15-2010, 12:32 PM
    jk
    Re: Forced to Add Spouse to Mortgage
    I believe you are not understanding the distinction between the mortgage and the mortgage loan. I would suggest they are not requiring him to be on the mortgage loan but the mortgage. Basically what they are wanting is he agrees that the mortgage lenders claim is superior to his. That way, if they need to foreclose, he could not present his rights as your spouse as a claim to the property senior to the mortgage.

    this does not affect his liability for the mortgage loan.
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