Tuesday, January 29, 2008

query: does a spouse have to sign the TIL

If the spouse is a borrower, yes, absolutely they have to sign the TIL.

If the spouse is not a borrower but the lender has determined that state law creates a need for the spouse to join in the mortgage in order to validate the lien, the lender may require that the spouse sign the TIL and the Right to Cancel.


Dave Wirsching said...

Many lenders require the spouse to sign if they are in title (on the deed), even if they are not on the note (loan).

Anonymous said...

The rule of thumb that I use is:


1) does the person have record interest (more than spousal)?

2) is the person a borrower (that is, is s/he on the 1003 and on the note?

If yes on both, that person clearly sings the NORTC. If yes on either, under almost all circumstanes, s/he would sign, IMO. If no on both - and state law varies - get clear direction what the lender wants.

Actually, it's always the lender's call how it sees the deal on the NORTC.

For example, I've had numerous lenders not give borrowers NORTC when paying off unrecorded contracts for deed/land installment contratcs (whatever you call them). My reading of the reg is that no recorded title interest is required if the borrower is refinancing a principal dwelling. And that is loosely defined by example - that place where that person returns to when s/he is away from home (this is used in other areas of law as well), driver's license address, registered voting address, etc.). But, that's the lender's call, not mine. Good luck to them if the borrower has a good lawyer down the road.