Community Property

[Teppo37]

What is the name of your state (only U.S. law)? Arizona
Hi I am a married and my spouse and I are separated (not Legally) we live in Arizona, a community property state, the house I am living I refinanced out of both our names into my name only and I am the only one on title after my spouse signed a quit claim deed at time of the refinance, my question is, I am trying to get an home equity loan and the bank is telling me that my spouse might have to sign documents, seeing how my spouse IS NOT on the current loan or title I don't see why she would have to sign anything, I posed the question, what if I wanted to just refinance the house again, what would she sign then seeing how she already signed a quit claim deed releasing her off title, the title reads "my name a married man, sole and separate property" can someone explain to me what in fact is true?

 

[tranquility]

This may not be a legal question as much as a bank rule. There are some possibilities where the community can gain some rights to separate property. Payment of principal from community assets is one. Also, there can be reimbursement from the sale of the house to the community for other amounts paid too. The bank is just covering all the bases. See if you can find another bank who does not have this requirement.

 

[latigo]

What is the name of your state (only U.S. law)? Arizona
Hi I am a married and my spouse and I are separated (not Legally) we live in Arizona, a community property state, the house I am living I refinanced out of both our names into my name only and I am the only one on title after my spouse signed a quit claim deed at time of the refinance, my question is, I am trying to get an home equity loan and the bank is telling me that my spouse might have to sign documents, seeing how my spouse IS NOT on the current loan or title I don't see why she would have to sign anything, I posed the question, what if I wanted to just refinance the house again, what would she sign then seeing how she already signed a quit claim deed releasing her off title, the title reads "my name a married man, sole and separate property" can someone explain to me what in fact is true?

You want to know "what in fact is true"?

Well, “bank” on what trany has written above!

Because no real estate lending institution will refinance your loan short of the wife currently subordinating to the mortgagee all of her present and future right and title to the property, including her homestead interest. This in spite of the QCD.

Nor without same would a title company issue in the name of the mortgagee a lenders’ ATLA Extended Coverage Policy and no bank will loan against real property without the security and protection afforded by such a policy.

So whatever it is that you seek to accomplish by this clever scheme ain’t going to fly past no banker.
___________

And I’ll add this even though not addressed and it may not come to pass between you and the wifey.

But should you attempt to assert sole rights to the home in a divorce court based on that QCD and where property distribution is contested, it wouldn’t fly there either!

Nor would it do so in the probate of your estate should you leave a will devising the home to someone other than your surviving present spouse.

 

[Eekamouse]

Trany. Funny.

 

[Teppo37]

You want to know "what in fact is true"?

Well, “bank” on what trany has written above!

Because no real estate lending institution will refinance your loan short of the wife currently subordinating to the mortgagee all of her present and future right and title to the property, including her homestead interest. This in spite of the QCD.

Nor without same would a title company issue in the name of the mortgagee a lenders’ ATLA Extended Coverage Policy and no bank will loan against real property without the security and protection afforded by such a policy.

So whatever it is that you seek to accomplish by this clever scheme ain’t going to fly past no banker.
___________

And I’ll add this even though not addressed and it may not come to pass between you and the wifey.

But should you attempt to assert sole rights to the home in a divorce court based on that QCD and where property distribution is contested, it wouldn’t fly there either!

Nor would it do so in the probate of your estate should you leave a will devising the home to someone other than your surviving present spouse.

Just a little more information, she currently owns her own home, she is the only one on her mortgage and the only one on title, at the time she purchased the home I in return had to sign a quit claim deed also for her, when the time comes that we divorce, there will be no problem with neither of us giving up rights to the other one's house, I am simply trying to figure out a way to as where she is not on the home equity loan so when we do divorce I do not have refinance the equity loan again to remove her name from it, we all though are separated have a good relationship and remained married for other reasons for now, this is not to try and pull some scheme its to not have to refinance another loan later, so lets say I just drop doing the home equity loan and just refinance my house, what would she be required to sign seeing how she already has signed a QCD to remove her name off title that she is no longer on?

 

[Ohiogal]

Just a little more information, she currently owns her own home, she is the only one on her mortgage and the only one on title, at the time she purchased the home I in return had to sign a quit claim deed also for her, when the time comes that we divorce, there will be no problem with neither of us giving up rights to the other one's house, I am simply trying to figure out a way to as where she is not on the home equity loan so when we do divorce I do not have refinance the equity loan again to remove her name from it, we all though are separated have a good relationship and remained married for other reasons for now, this is not to try and pull some scheme its to not have to refinance another loan later, so lets say I just drop doing the home equity loan and just refinance my house, what would she be required to sign seeing how she already has signed a QCD to remove her name off title that she is no longer on?

Marital property. Dowry rights. So on and so forth. Get a divorce. It will simplify things for both of you.

 

[tranquility]

More facts are irrelevant. The bank wants to make sure the person getting the loan is the only one with rights to the property. A married person may have.....complications. The bank will require a letter or other signing stating the spouse has no rights to the house.

Get it. I suspect all the banks in town will require the same.