“Loan only” buyers who want to be listed on the loan, but not on the title of the property. This type of arrangement is less common than “title only” buyers, where the buyer is listed on the title but not the loan.
Generally, co-borrowers share the title of the home. But this isn't always the case since the loan and the title are separate. Be aware that if you're a co-borrower and your name isn't on the title, you'll still be responsible for paying off the mortgage – but won't have the right to use the house.
It's perfectly legal to co-own a house with someone to whom you're not married or to add someone to your deed to whom you are not married. You can put another name on the deed even if they didn't sign the mortgage, provided the lender agrees.
The title is the concept of legal ownership while the deed is the document that proves ownership. Moreover, you can't have a valid house deed if you don't hold title.
If solely in the deceased spouse's name
The surviving spouse can often assume the mortgage, but this process may involve credit checks and lender approval. If the surviving spouse cannot assume the mortgage, other options must be explored to prevent foreclosure.
What if my Former Spouse is on the Deed but not the Mortgage? If your spouse is on the deed but not the mortgage, they own the house but are not liable for the mortgage loan and the resulting payments.
Regarding property ownership, two essential documents are the deed and mortgage. Out of these two, the deed is undoubtedly the most important one. It acts as concrete evidence of your rightful ownership of the property.
If your name is on the mortgage but not the deed, you are financially responsible for the loan but do not have ownership rights. This situation can arise if you co-sign a loan or take out a mortgage for someone else's property.
If the property is not in your name, you will need to determine if you have the legal right to sell it. This could be the case if you are the executor of an estate, the power of attorney for the owner, or if you have a valid contract or agreement with the owner giving you the right to sell the property.
Does it matter whose name is first on a deed? The sequence in which names appear on deeds typically does not impact ownership rights.
Yes, you can add someone to your property title without including them on the refinanced mortgage loan.
Does it matter who's the borrower and who's the co-borrower? Since the borrower and co-borrower are equally responsible for the mortgage payments and both may have a claim to the property, the simple answer is that it likely doesn't matter.
Buyers can indeed be on the loan but NOT on title.
I should add though that this applies to conventional (conforming and jumbo) loans only; FHA and VA loans (and some jumbo) loans require all borrowers on the loan to also be on title.
If you purchased your house during the marriage, the court categorizes it as marital property. However, if you purchased the home using entirely separate property funds, and your spouse's name does not appear on the title, the court may award it to you as your separate property.
If your name is not included in the title deed of the home but is included in the mortgage, this can mean that you do not have an ownership stake in the property while also being obligated to make payments to the mortgage.
In short, a mortgage is an agreement to pay back the loan amount borrowed to buy a home. A title refers to the rights of ownership to the property. Many people assume that as a couple, both names are listed on both documents as 50/50 owners, but they don't have to be.
If your surviving spouse isn't on the mortgage, federal law provides protections allowing them to assume the mortgage and keep the home. This is assuming they (and not someone else) inherit the property. The surviving spouse must also be able to afford the mortgage payments to assume the mortgage.
If you are not on the mortgage for whatever reason, you are not liable for paying the mortgage loan. That said, you get your spouse's interest in the property if they die. However, if you default on mortgage payments, the mortgage lender has the power to foreclose on the home and evict you.
And if someone wants to put you on their deed, they must tell you — not surprise you. Otherwise, you could lose the property over a court challenge that you never acknowledged receipt of the deed during the transferor's life.
Once you've paid back the loan, the lender needs to remove the lien. To do that, it'll issue the deed of reconveyance.
One question that often arises when we recommend a Trust is whether you can transfer your home into a Trust if you still have a mortgage. The short answer to the question is: Yes, you can place your house in a Trust even if a bank holds a mortgage for it.
If your name is on the deed but not on the mortgage, your position is actually advantageous. The names on the deed of a house, not the mortgage, indicate ownership. It's the deed that passes real estate ownership from one entity to another.
However, in a community property state (like California) – and even some states without community property laws – a home purchased during the marriage is considered marital property, regardless of whose name appears on the deed.