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vamibm · May 22, 2009, 07:50 PM

My brother and I are on a property deed that we are refinancing in New Jersey and I live in California. My wife is not on the deed. In signing the load documents does my wife have to sign both the note and mortgage (I guess it is called a trust deed or can she just sign the mortgage and not the note? Is my wife financially liable if she just signs just the mortgage and not the note in case of a foreclosure?

LisaB4657 · May 23, 2009, 05:26 AM

In NJ they do not use a deed of trust, just a note and mortgage. If your wife signs the mortgage but not the note then she will not be financially liable for repayment of the loan. She only becomes financially liable if she signs the note.

AK lawyer · May 24, 2009, 08:36 AM

Originally Posted by LisaB4657

If your wife signs the mortgage but not the note then she will not be financially liable for repayment of the loan. She only becomes financially liable if she signs the note.

Right. Think of it like this: The note is a promise to pay back the loan. The mortgage is an agreement that, if the note is not paid as agreed, the property can be taken to satisfy the loan. So, if you don't abide by the terms of the note and pay it when required, she will not have breached the note (because she is not a party to it), but the mortgage can nevertheless be foreclosed (because she signed that).

LisaB4657 · May 24, 2009, 09:20 AM

Originally Posted by AK lawyer

Right. Think of it like this: The note is a promise to pay back the loan. The mortgage is an agreement that, if the note is not paid as agreed, the property can be taken to satisfy the loan. So, if you don't abide by the terms of the note and pay it when required, she will not have breached the note (because she is not a party to it), but the mortgage can nevertheless be foreclosed (because she signed that).

Gee. Thanks for the validation.