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Old 20.09.2011, 18:20
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Buying a house: mortgage and title for different people

Hi,

I have (perhaps) completely dumb question: because of pecularities of our nationalities, it would be very convenient if I had the title on the house while my husband had an obligation of the mortgage :-) I am currently not working and thus do not have an income flow, and he does. Our permits are OK for property buying.

Is it possible somehow? We always before had joint ownership and never asked such a question. Of course my husband can profess that we are staying together forever, to the bank or to the notary, whatever

Thanks in advance for all the comments.
KTZV
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Old 20.09.2011, 18:29
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Re: Buying a house: mortgage and title for different people

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Hi,

I have (perhaps) completely dumb question: because of pecularities of our nationalities, it would be very convenient if I had the title on the house while my husband had an obligation of the mortgage :-) I am currently not working and thus do not have an income flow, and he does. Our permits are OK for property buying.

Is it possible somehow? We always before had joint ownership and never asked such a question. Of course my husband can profess that we are staying together forever, to the bank or to the notary, whatever

Thanks in advance for all the comments.
KTZV
let me guess: you're russian?

EDIT: ukrainian. close.
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Old 20.09.2011, 18:42
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Re: Buying a house: mortgage and title for different people

Personally, I'd guess a bank would not do this because if your husband defaults on his loan, they may not have a claim on the house as it's in your name. So why would they agree to that?
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Old 20.09.2011, 18:54
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Re: Buying a house: mortgage and title for different people

Phil MCR, yes, you are right, of course. But what special did I do that showed that I belong to wonderful slavic community? :-)
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Old 20.09.2011, 18:59
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Re: Buying a house: mortgage and title for different people

i don't think the bank should have a problem. you might create other tax problems though.
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Old 20.09.2011, 19:02
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Re: Buying a house: mortgage and title for different people

I'm not sure I understand the advantage unless you break up. If you as a couple have the income to take the mortgage obligation, it doesn't help to change it by listing only one, does it?

What, apart from "convenience" is the benefit?
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Old 20.09.2011, 19:05
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Re: Buying a house: mortgage and title for different people

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Personally, I'd guess a bank would not do this because if your husband defaults on his loan, they may not have a claim on the house as it's in your name. So why would they agree to that?
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i don't think the bank should have a problem. you might create other tax problems though.
Phil - I disagree...MiniMia is right I think. You need to sign to the bank that if you default on the mortgage, they get the papers and both owners of the house need to sign it.

I just had an interesting opposite case.....I have had my current house since before I met my wife and both the house and mortgage were in my name only. However when I recently sold, she had to undersign to sign that she was happy for me to do so
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Old 20.09.2011, 19:06
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Re: Buying a house: mortgage and title for different people

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i don't think the bank should have a problem. you might create other tax problems though.
What is the incentive for a bank to do this? Like I said above, if the husband doesn't pay the mortgage how will they make a claim on the house? What if they divorce?

What tax problems to you envision should the bank accept this situation*?



(*which I can't see happening. But I'm not a bank. )

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I just had an interesting opposite case.....I have had my current house since before I met my wife and both the house and mortgage were in my name only. However when I recently sold, she had to undersign to sign that she was happy for me to do so
We were told the same thing at the notary, ie, even though the house is in DH's name he can not sell the family home without my consent. This is true for leases as well.
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Old 20.09.2011, 19:09
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Re: Buying a house: mortgage and title for different people

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What is the incentive for a bank to do this? Like I said above, if the husband doesn't pay the mortgage how will they make a claim on the house? What if they divorce?
the bank would take a charge on the property regardless of who has title to the property.
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Old 20.09.2011, 19:14
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Re: Buying a house: mortgage and title for different people

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the bank would take a charge on the property regardless of who has title to the property.
I very much doubt that...if I can't sell MY house without the signature of my wife, I can't see that a bank would be able to kick somebody out of the house the house they jointly own...

But you sound like you speak from experience or expertise?
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Old 20.09.2011, 19:22
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Re: Buying a house: mortgage and title for different people

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Phil - I disagree...MiniMia is right I think. You need to sign to the bank that if you default on the mortgage, they get the papers and both owners of the house need to sign it.

I just had an interesting opposite case.....I have had my current house since before I met my wife and both the house and mortgage were in my name only. However when I recently sold, she had to undersign to sign that she was happy for me to do so
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the bank would take a charge on the property regardless of who has title to the property.
Really? How could they do that? Please explain.
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Old 20.09.2011, 19:24
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Re: Buying a house: mortgage and title for different people

Thanks for your replies. My husband already has property abroad that he bought long ago, before marriage, it's his (meaning no mortgaged). In some sense we feel better if we spread our properties among us, not for the case of divorce but more for other unpredictable calamities.

My understanding of basic finance is that the house belongs to the bank in case of default on mortgage by definition, irrespective who'd signed in the title. I am not very familiar with local laws, but I would think they do not change this.

KTZV
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Old 20.09.2011, 19:28
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Re: Buying a house: mortgage and title for different people

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I just had an interesting opposite case.....I have had my current house since before I met my wife and both the house and mortgage were in my name only. However when I recently sold, she had to undersign to sign that she was happy for me to do so
Was it rather not that the non owning spouse/occupier was being required to sign as formal acknowledgement that they were relinquishing any rights they might have acquired to stay/in the sale proceeds through living at the property/possibly contributing towards its upkeep and/or the mortgage?

Don't know, but that would be my guess.
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Old 20.09.2011, 19:32
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Re: Buying a house: mortgage and title for different people

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Was it rather not that the non owning spouse/occupier was being required to sign as formal acknowledgement that they were relinquishing any rights they might have acquired to stay/in the sale proceeds through living at the property/possibly contributing towards its upkeep and/or the mortgage?

Don't know, but that would be my guess.
No. As a married person you can not sell/give up the lease on the family home unilaterally. It must be agreed to as a couple. My husband was always the only one on the leases and deeds and I had to sign too.
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Old 20.09.2011, 19:32
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Re: Buying a house: mortgage and title for different people

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Was it rather not that the non owning spouse/occupier was being required to sign as formal acknowledgement that they were relinquishing any rights they might have acquired to stay/in the sale proceeds through living at the property/possibly contributing towards its upkeep and/or the mortgage?

Don't know, but that would be my guess.
Exactly that, ECB. Which is why i puzzled that by being resident at a house but not having title, you have rights that need to be signed away, but that (if Philmcr is right) if you do have title, they count for nothing in case of mortgage default. Seems inconsistent
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Old 20.09.2011, 19:49
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Re: Buying a house: mortgage and title for different people

consider 3 scenarios:

- bank has mortgage and you have title to the house and live in it. you default
- bank has mortgage and your wife has title to the house and lives in it. you default
- bank has mortgage and you have title to the house. the house is rented to a tenant. you default

would there be a difference between whether the bank can foreclose on the property in the 3 cases? why?
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Old 20.09.2011, 19:56
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Re: Buying a house: mortgage and title for different people

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consider 3 scenarios:

- bank has mortgage and you have title to the house and live in it. you default
- bank has mortgage and your wife has title to the house and lives in it. you default
- bank has mortgage and you have title to the house. the house is rented to a tenant. you default

would there be a difference between whether the bank can kick you, your wife, or the tenant out? why?
Exactly....which is why I don't they would allow the middle one to happen. Legally a married partner has some rights to a house here whether or not they have title, so I can't imagine that the bank would allow the mortgage and the title to be in different names.

(In the case of the tenant, when the bank takes title....I assume that they have to take over any obligations on the house and need to retain the tenant until the agreement runs out)

But I'm not an expert, I'm just going on the small bits I know
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Old 20.09.2011, 19:59
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Re: Buying a house: mortgage and title for different people

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Exactly....which is why I don't they would allow the middle one to happen. Legally a married partner has some rights to a house here whether or not they have title, so I can't imagine that the bank would allow the mortgage and the title to be in different names.
and in the case where a married couple jointly owns a house?
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Old 20.09.2011, 20:01
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Re: Buying a house: mortgage and title for different people

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consider 3 scenarios:

- bank has mortgage and you have title to the house and live in it. you default
- bank has mortgage and your wife has title to the house and lives in it. you default
- bank has mortgage and you have title to the house. the house is rented to a tenant. you default

would there be a difference between whether the bank can foreclose on the property in the 3 cases? why?
Instead of playing games maybe you could tell us how it is that the bank can foreclose on a house where they title holder is not the holder of the mortgage? Perhaps it's because they are married? And if so, what is they divorce? I can't see the husband writing a note saying they will never divorce is going to hold water. If you know why don't you tell us? 1 & 3 are not in question. Only #2.
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Old 20.09.2011, 20:04
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Re: Buying a house: mortgage and title for different people

i guess there are 4 options:

- bank has mortgage and you have title to the house and live in it. you default
- bank has mortgage and your wife has title to the house and lives in it. you default
- bank has mortgage and you and your wife has title to the house and lives in it. you default
- bank has mortgage and you have title to the house. the house is rented to a tenant. you default

if the bank can foreclose on option 3 (which i guess is the normal one) why couldn't they foreclose in option 1 and 2 when there is one less person with title to the house?
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