Financing in 85016>Question Details

Christina, Home Buyer in Chandler, AZ

I bought my current home before I got married, and we both signed a pre-nuptial agreeing that the home will remain my private property.

Asked by Christina, Chandler, AZ Sat Nov 24, 2012

Now I want to refinance, but I may not qualify with my reduced income alone (even though I have about 30% equity). Can my wife co-sign for me while leaving her out of the title (she is willing to do so). Or does my wife have to be in the title if she co-signs for my new loan? I really want to keep the house under my name only. What are my alternatives?

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1 vote Thank Flag Link Wed Nov 28, 2012
Well, our advice comes with a money-back guarantee, if that's any consolation.

Y'know, you've set up a really difficult situation that is difficult to maintain - having your principal residence be severally owned in a community property state where the spouse is contributing to the upkeep of the property.

My concern is that you're blowing the pre-nup by having your wife co-sign the loan. The whole idea of a pre-nup is to demonstrate your intentions if it becomes time to divvy up the assets, and what you're planning may demonstrate that you have changed your mind since the pre-nup and that you have decided to co-mingle your asset and make it part of the community property.

Just because this is your wife's idea doesn't make it a good one (it is, by the way), but you've set up such a fragile structure that you really can't attempt this without good legal counsel.

All the best,
1 vote Thank Flag Link Mon Nov 26, 2012
well a pre-nuptial was completely unnecessary,

http://www.azleg.state.az.us/FormatDocument.asp?inDoc=/ars/2…

Arizona statute, it's yours no matter what. Now, I'm not a lawyer, so I'd suggest you talk with a divorce lawyer before banking on that. Really I'd suggest you talk to one anyway. This is a legal matter, not a finance or real-estate question.
0 votes Thank Flag Link Thu Nov 29, 2012
"No good deed goes unpunished!"
0 votes Thank Flag Link Wed Nov 28, 2012
My question was regarding real estate, title and loans. Thank you to all who provided general real estate information.

But, I do not need, or asked for, a lesson on personal relationships. Doing this has been my wife's idea, and she is aware of all this - this is her trulia account and she is reading all this. Even though for personal reasons the property will remain under my name only, if something happens that I pass the property will be all hers. Dave, please keep your personal advice to yourself. If I needed that kind of adviceI would have called Dr. Phil.

I am not sure why there is conflicting information, with most saying that it can not be done and Debbie saying that it can be done.

Thanks again anyway to those who provided real estate information.
0 votes Thank Flag Link Mon Nov 26, 2012
I work with several lenders that may be able to help you. Feel free to shoot me an email and I can send over their contact information.
0 votes Thank Flag Link Sun Nov 25, 2012
Your wife should not sign on the loan if she will not have rights or claim to half the property. The situation you want to put her in sets her up for a (potential) huge failure in the future. Your wife has nothing to gain, but a whole lot to lose. If something were to happen and you both split up, your wife will probably not be able to get a mortgage in the future because she will be responsible for your mortgage. She needs to figure out if her income could support two mortgages if you were ever to split. Also, this puts you in control of her credit. If you default, her credit is tarnished. Before Real-estate, I was in banking for 12 years and I unfortunately saw the terrible down side to this scenario with too many people who thought they were “just helping”.
0 votes Thank Flag Link Sun Nov 25, 2012
You can certainly have someone co-sign on a loan which would make her legally responsible and not have her on the title. What happens if god forbid you pass away, does the property then go to your family and she's still legally responsible? I'd speak with an attorney and determine the best way to help you and protect her.

If you need the name of a couple great attorney's that know about Real Estate Law, drop me an email or call me and I'll be happy to pass that information on to you both.

Good luck

Debbie Nieman
Real Estate Professional
602-799-5239

http://www.diverdebi.com
diverdebi@cox.net
0 votes Thank Flag Link Sun Nov 25, 2012
I think you need some professional legal advice here, Christina.

I suspect - I am not an attorney - I suspect that if you co-mingle this asset by having your wife co-sign the loan, then you put yourself at risk of having that clause in your pre-nup become contestable.

I'd like to think that you can go ahead with the refinance, leave your wife off of the title, sign a memorandum to the effect that you and your wife intend for the property to remain your separate property, and live the way you planned to. But you'll need legal help to arrange this, if it is at all possible.

All the best,
0 votes Thank Flag Link Sat Nov 24, 2012
You are best to try and refinance on your own. Your current bank (existing loan servicer) may do a reduced documentation loan if you have been current and in good standing. I would start there 1st because if you add wife to loan she would have to be on title as well. Certainly worth the try.
0 votes Thank Flag Link Sat Nov 24, 2012
In short, if your wife co-signs she will be on both the title and the loan. You could do a separate.agreement with her that her interest in them is xx%. And you could do a quit claim after t remover her from title, but she will remain on the loan. All these issues should be discussed with your attorney as each of them have multiple consequences for each of you depending on what happens in the future. If you need a reference for either a lender or some attorneys that may better assist you, please let me know. Melissa Schwartz, Realty One Group,
Web Reference: http://AZFineLiving.com
0 votes Thank Flag Link Sat Nov 24, 2012
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