Refinancing and Quitclaims

[sporranwearer]

What is the name of your state? Wisconsin

If a spouse is quitclaimed off a property for the purposes of refinancing due to poor credit, does this invalidate the non mortgage spouses marital interests in the property? (Wisconsin is a marital property state) What would happen if the mortgaged spouse died, for purposes of spousal transfer? Is it the same ?

[HomeGuru]

Originally Posted by sporranwearer

What is the name of your state? Wisconsin

If a spouse is quitclaimed off a property for the purposes of refinancing due to poor credit, does this invalidate the non mortgage spouses marital interests in the property? (Wisconsin is a marital property state) What would happen if the mortgaged spouse died, for purposes of spousal transfer? Is it the same ?

**A: and why are you asking? Do you have an actual specific real life issue?

[moburkes]

Originally Posted by sporranwearer

What is the name of your state? Wisconsin

If a spouse is quitclaimed off a property for the purposes of refinancing due to poor credit, does this invalidate the non mortgage spouses marital interests in the property? (Wisconsin is a marital property state) What would happen if the mortgaged spouse died, for purposes of spousal transfer? Is it the same ?

Let me give you a hint: You don't need to quit claim in order to have the refi in one person's name.

[HomeGuru]

Originally Posted by moburkes

Let me give you a hint: You don't need to quit claim in order to have the refi in one person's name.

**A: you're full of hints this week.

[sporranwearer]

Originally Posted by HomeGuru

**A: and why are you asking? Do you have an actual specific real life issue?

Well of course, why would I ask?

I am a new loan originator specializing in Reverse Mortgages. One spouse is 62, (the minimum age for this) the other is not. Do we have to quitclaim the non qualifying spouse?

[moburkes]

Originally Posted by sporranwearer

Well of course, why would I ask?

I am a new loan originator specializing in Reverse Mortgages. One spouse is 62, (the minimum age for this) the other is not. Do we have to quitclaim the non qualifying spouse?

They don't qualify if they both aren't over 62, if they are both on the title. So, the quitclaim would solve the problem - for now. But, once the person on the mortgage dies or moves to a nursing home permanently, the other spouse must move out.

I wouldn't want my spouse to be put into a nursing home, or die, and, at the same time, I must look for housing for myself.

If they need the RM money to live, what will the remaining spouse live on after the RM is called due?

[nextwife]

Originally Posted by moburkes

They don't qualify if they both aren't over 62, if they are both on the title. So, the quitclaim would solve the problem - for now. But, once the person on the mortgage dies or moves to a nursing home permanently, the other spouse must move out.

I wouldn't want my spouse to be put into a nursing home, or die, and, at the same time, I must look for housing for myself.

If they need the RM money to live, what will the remaining spouse live on after the RM is called due?

Look, it is REALLY not appropriate for L.O.s to keep advising people to quit claim their real estate! There are many legal, estate, and bdivorce implications that the LOs are not well enough versed upon to be giving this sort of advice. Do you even KNOW if either has grown children from a prior marriage who would boot the spouse into the street if the borrower dropped dead of a heart attack? Or of they immediately filed for divorce?

I have seen way too many sorry circumstances where some LO had people go and quit claim away their real estate, to get a loan, and they ended up s*****d!

[nextwife]

Originally Posted by moburkes

They don't qualify if they both aren't over 62, if they are both on the title. So, the quitclaim would solve the problem - for now. But, once the person on the mortgage dies or moves to a nursing home permanently, the other spouse must move out.

I wouldn't want my spouse to be put into a nursing home, or die, and, at the same time, I must look for housing for myself.

If they need the RM money to live, what will the remaining spouse live on after the RM is called due?

Yup., there is that.

Poster, look, it is REALLY not appropriate for L.O.s to keep advising people to quit claim their real estate! There are many legal, estate, and divorce implications that the LOs are not well enough versed upon to be giving this sort of advice. Do you even KNOW if either has grown children from a prior marriage who would boot the spouse into the street if the borrower dropped dead of a heart attack? Or of they immediately filed for divorce?

I have seen way too many sorry circumstances where some LO had people go and quit claim away their real estate, to get a loan, and they ended up s*****d!

[moburkes]

Were you yelling at me?

[nextwife]

Originally Posted by moburkes

Were you yelling at me?

I'm yelling at whatever LO is recommending this action.

It is very unwise.

[moburkes]

Originally Posted by nextwife

I'm yelling at whatever LO is recommending this action.

It is very unwise.

Well, that's not me. I'm not a LO. But, you quoted me twice, I might add, as if I was the one who did this.

[sporranwearer]

Originally Posted by nextwife

Yup., there is that.

Poster, look, it is REALLY not appropriate for L.O.s to keep advising people to quit claim their real estate! There are many legal, estate, and divorce implications that the LOs are not well enough versed upon to be giving this sort of advice. Do you even KNOW if either has grown children from a prior marriage who would boot the spouse into the street if the borrower dropped dead of a heart attack? Or of they immediately filed for divorce?

I have seen way too many sorry circumstances where some LO had people go and quit claim away their real estate, to get a loan, and they ended up s*****d!

I have not recommended it and this was the reason I came here for an opinion. I have already advised the borrower to wait the 11 months until his spouse becomes 62.

Okay heres another one for you.

I have a prospective client whose wife is in a nursing home under title 19. I spoke to an attorney a few weeks back and she informed me that once the patient passes a specific time period (30 days)the remaining spouse may do anything with the property including take out a mortgage on it and it will not affect his wifes status. He is specifically worried that he would pass away and the property would revert to her and the state would end up taking it. What is further complicating this is that the family claims while the husband has medical POA, he doesnt have a general POA and cannot enter into a mortgage without her signture (she is incompetent to sign)

So my questions are: Is this possible? Can he have the power of life and death over her but not the ability to take out a mortgage without her signature? Secondly, it would seem to me that in the process of separating her financially to qualify for Title 19 would also separate her as a property owner would it not? Otherwise wouldnt that asset be taken to pay for her medical care?

Your help is very much appreciated.

[Kitty61mom]

This was not the right way to handle a spouse with poor credit. You are not alone!
In most cases where the property is the primary residence, both husband and wife are on the deed but only one qualifies for the mortgage, then the only document typically required to be signed at closing is the mortgage. Community property states are different. This does not apply to reverse or some investment or commercial properties.
Any time a representitive of a financial institution requires you to remove a party from a deed or deed of trust, well I would consider that "suspect" mostly due to lack of knowledge.
It may be a good idea to discuss this queston directly with the attorney or title company agent whos issues the title insurance and closing your loan to see what they say.
In cases where one party has passed away, the title insurance underwriter will instruct you according to the state regulations.
Hope this helps