Posted on 07/31/2006 4:51:55 AM PDT by hsmomx3
I have run across something that seems very bizarre and want to know if a loan can be approved such as this one.
A married woman, age 30, obtains a conventional fixed mortgage on a home she wants to purchase and the sales price is $230,000.
Her husband is not listed on the Deed of Trust
From what I was told her mother and husband's income were used as a means to obtain the home even though the married woman's name appears only in the documentation.
Is this possible? Can one be approved for a loan such as this without having a job and having others salaries used as the main income?
Is her husband's name on the mortgage, just not the deed?
No, not from what I have been told.
Also, only her name appears on the tax statements for property taxes.
Her husband and mother took out the mortgage and are on the hook for paying it.
It's immaterial whose name is on the deed.
I was told that they are not on there and the house is the married woman's but none of this made any sense to me.
I have never heard of such a thing which makes me think how bizarre this is.
More correctly - the husband and mother both co-signed the mortgage the woman took out and are on the hook to pay it.
Do you know how she took title on the deed? Does it have her listed as "a married woman as sole owner"? Or does it say, "a married woman"?
It could be that her husband doesn't want it to appear on the public record as owning any assets. Who knows.
It says:
"a married woman as sole owner"
Also, the husband was recently behind some $1500 on his cell phone bill which he never paid and they cancelled their cell phone service.
And the mother hops from one apartment to the other and all of them were even evicted a few years ago for non payment of an apt.
See how strange this is???
The husband and mother had to have signed the note as "co-signers" or the loan would not have been approved. The mortgage and note may or may not have been recorded in the public record. Depending on what state and county they live in, you may be able to see the actual instruments if the official records are available on line.
in Arizona.
I looked at the deed and only the married woman's name appears.
There are so many different types of loans these days, nothing is immpossible. In Kansas, if you are married you can still buy a house on your own, but because you are married, even if your spouse's name is not on the note or the deed, it is still a requirement for that person to be at closing and sign the mortgage and the spouse is owner as well. Hence one can buy, but it takes two to sell.
If a person has excellent credit, they can get a "stated income" loan, or a "no documents" loan. There are also 40 year mortgages and interest only loans. There are as many different species of loans as there are colors in the rainbow
If they both had jobs / one or more sources of income at the time - they would have been acceptable as co-signers.
These are the sorts of transactions (attempts to hide assets) that take place when people owe a lot of debts and fear being sued.
Is the mortgage AND the note recorded? If so, look to see who signed the note. They HAD to sign something or the loan would not have been approved.
Ping!
Generally no. If she got the loan on her own, they may have done one of several things:
-No Documentation - they don't ask for income at all, or proof of employment. While this sounds absurd (and may well be) if someone has impeccable credit and enough of a down payment (or equity in a refinance scenario) it is possible.
-"Boarder" income - this is rare, but some lenders will let you count documentable income recieved from others who live with you. Generally this would be if you have a roommate that gives you $800 a month, for example.
If the husband and mother are not on the mortgage, they are most likely guarantors of the wife's obligation on the mortgage. In that way, if there is a default on the mortgage, the lender has access to, in this order, the property itself, the assets of the wife (if any), then the assets of the husband and mother. It is an unusual arrangement, and not every lender would want to bother with it, but it is not far-fetched.
We're looking at getting a no doc to put a down payment on the house we're trying to buy, while our house is still on the market. Scary, though. We have great credit and we're financially solid, but the idea of carrying three mortgages gives me the willies.
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