Why Banks May require Additional Signatures To Protect Their Security Interest On Home Mortgages
Hello everyone, another episode of Tile Buzz. This is Rich Barbara Coral Gables Title and Escrow and today I wantto talk about a topic that I often get questions on from buyers, sellers, Realtors you name it and the question is, Rich why does the bank loaning me money to buy my house, want my wife or my spouse to sign the mortgage if my wife’s not borrowing the money, and the answer to the question is because banks want to make sure that they perfect their security interest in the property even, if it’s investment property. Your spouse if you are borrowing money from a bank to buy a home, maybe required to sign just the mortgage.
Now this does not make your spouse responsible for the financial obligation associated with the mortgage. It only protects the bank in the event that the bank has to foreclose later and the property becomes homestead. Without the signature of the spouse on the mortgage the bank will encounter difficulty in protecting its security interest and foreclosing on the property. So, if you come across this situation and you’re the buyer? Don’t panic! You are not making your spouse responsible for the money owed to the bank by simply having them sign the mortgage.
If you are a seller and your buyers being faced with this situation. Make sure that there’s a real estate professional involved that can explain that just because the spouse is being asked to sign the mortgage. They are not making themselves responsible for the money owed to the bank. However, without signing the mortgage the buyer may not get the loan, the transaction may not close. So, if your real estate professional isn’t aware of this could be a tricky issue at the closing. If you have any questions, feel free to give us a call Rich Barbara Coral Gables Title.