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    juliapelt's Avatar
    juliapelt Posts: 1, Reputation: 1
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    #1

    Nov 25, 2007, 01:50 AM
    Does sigining the mortgage make a spouse a co-borrower?
    I am married in the state of Illinois. My husband owned our house before we got married, and my name is not on the deed. He is about to refinance, and the lenders want me to sign: a Truth in Lending, the mortgage (not the mortgage note), and a form that says I can cancel within 3 days. My husband has re-financed before, and I never had to sign anything. I am told that Illinois laws have changed, requiring the spouse to be aware of what is going on. The lenders say that my signature on the mortgage will not make me a co-borrower, but I am very skeptical. I do not want to assume responsibility for payment of something that I do not own, and I do not want that debt to be on my credit history. We have 1 child together, and he has 3 from a previous marriage, so according to Illinois law, it is my understanding, that in the event of his death, (without a will), the spouse is entitled to 50%, and the children share the other 50%. They claim that they have not checked my credit, and that my name des not show up anywhere in their documents. My husband is retired (he was not retired at the time of the previous refinancings), and works part time. I am still employed full time, and have been on my job for over 20 years. I wonder if the fact that he is retired has anything to do with requiring my signature? What I need to know:

    Does my signature on the mortgage, the TIL, and the option to rescind make me a co-borrower? Will the debt show up on my credit.

    Thanks for your help
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
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    #2

    Nov 25, 2007, 05:45 AM
    Hello Julia:

    I have never heard of someone required to sign something who ISN'T involved. I think you're going to be a co-borrower.

    excon
    LisaB4657's Avatar
    LisaB4657 Posts: 3,662, Reputation: 534
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    #3

    Nov 25, 2007, 06:40 AM
    You will be a co-borrower ONLY if you sign the mortgage note.

    The mortgage note is the actual promise to pay. The mortgage is merely a document that says the homeowner gives the mortgage company permission to take the house if the homeowner doesn't pay back the loan.

    The reason you are being asked to sign the mortgage is because you may have certain rights to ownership of the house by law because of your marriage. By having you sign the mortgage you are giving the lender permission to take the house in the event your husband doesn't pay back the loan and in the event you are an owner of the property. It is merely a case of the lender covering their butt.

    Signing the mortgage, the Right of Recission and the Truth-in-Lending Disclosure statement does not make you a co-borrower. The only way you could ever be personally responsible for payment of the loan is if you sign the mortgage note.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #4

    Nov 25, 2007, 07:30 AM
    I would ask the lender to cite the specific law they are referring to, but it probably as Lisa stated. This is actually to protect you as much as the bank. It makes sure you aware what your husband is doing. Its to prevent husbands from going behind the wife's back to get money.
    LisaB4657's Avatar
    LisaB4657 Posts: 3,662, Reputation: 534
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    #5

    Nov 25, 2007, 07:36 AM
    Scott, the law that applies is not specific legislated law, but rather the laws of dower and curtsey. Those are part of common law and have been abolished in most locations, but lenders still need to cover themselves.

    A good explanation of the rights of dower and curtsey are at Fee Simple: The longest estate about halfway down the page.
    froggy7's Avatar
    froggy7 Posts: 1,801, Reputation: 242
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    #6

    Nov 25, 2007, 09:39 AM
    While LisaB is most likely correct, I would read anything that you are asked to sign very very carefully, just in case. Of course, you were going to do that anyway, right?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #7

    Nov 25, 2007, 09:41 AM
    The OP said they were told that Illinois has changed laws. So if that's what they were told it may be a new law.
    kdwyer's Avatar
    kdwyer Posts: 6, Reputation: 1
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    #8

    Nov 25, 2007, 09:49 AM
    It might be to add your name to the deed, my name is not on the loan for our home but I am on the deed/title. I had to sign a lot of things when we bought and refinaced our house but there is nothing on my credit about the house and when we look up the loan and so forth it is just in his name.

    Hope this helps, but I agree with the others I would not sign anything without reading...
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
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    #9

    Nov 25, 2007, 03:43 PM
    Quote Originally Posted by kdwyer
    It might be to add your name to the deed, my name is not on the loan for our home but I am on the deed/title. I had to sign a lot of things when we bought and refinaced our house but there is nothing on my credit about the house and when we look up the loan and so forth it is just in his name.

    hope this helps, but i agree with the others i would not sign anything without reading....

    Wow - I'm amazed you are on the Deed and not the mortgage, with the bank's knowledge and consent. This could be a nightmare if you ever default.
    s_cianci's Avatar
    s_cianci Posts: 5,472, Reputation: 760
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    #10

    Nov 25, 2007, 04:07 PM
    I've never heard of a situation quite like this. You may want to speak with an attorney before signing anything. I'll admit it does sound pretty irregular.
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
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    #11

    Nov 26, 2007, 09:21 AM
    Quote Originally Posted by s_cianci
    I've never heard of a situation quite like this. You may want to speak with an attorney before signing anything. I'll admit it does sound pretty irregular.

    Can't believe the bank would do it - in case of a default the mortgagee is not the only owner - ? Rather amazing to me.

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