Financing in 92651>Question Details

Diane, Other/Just Looking in Fremont, CA

What is an interspousal deed?

Asked by Diane, Fremont, CA Mon Apr 8, 2013

My husband and I are refinancing our home loan at a lower interest rate. I had a credit issue that couldn't be resolved in time so it was recommended that I be removed from the loan to make the process easier. Now I am being asked to sign an interspousal deed before the loan is processed. Will that completely remove me from any ownership of the home? If so, can I be immediately placed back on the deed as soon as the refinance is completed?

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The Title Company can record an Interspousal Deed to remove you from the Title at teh same time they are recording the Refinance Documents (the new Note) - Then, also at the same time, they can record another Interspousal Deed adding you back onto the Title.

This can all be achieved at the same visit to the recorder's office;
Document 1 = Record Interspousal Deed removing you from Title
Document 2 = Record Refinance Documents and Note
Document 3 = Record Interspousal Deed adding you onto the Title again.

To protect yourself, speak with an attorney or the Title Company recording your documents.

Best of luck,
0 votes Thank Flag Link Tue Apr 9, 2013
Thank you very much. I signed docs last night, exactly as you stated above. It was helpful to know it all could be done at the same time.
Flag Wed Apr 10, 2013
Interest rates have not changed much in the past 100 days, in fact they went down on this past Friday. What is the problem that can't be resolved? A collection? or is it lower FICO?

You are completely removed from ownership yes, you can be added back on but read the documents carefully, the lender may have a clause that disallows this action...

You won't sign the promissory note or be responsible for the loan, and it won't show on your credit, but some lenders will require you to sign an aknowledgement that you are taking this risk.
Some of the risks are: 1. if a divorce is pending you won't own the house 2. you file it incorrectly without title insurance 3. lender might call the note (maybe maybe) 4. the good credit rating going forward won't help your FICO score improve.

If it is a judgement they can lien the house, if it is a large collection they might go get a court judgment, and request that the court issue an Abstract of Judgment. The company must then file its Abstract of Judgment with the recorder office in the county in which your property is located to create a lien.

Why can the credit issue not be fixed?
0 votes Thank Flag Link Wed Apr 10, 2013
I would ask a Real Estate Attorney or just call up a title company for the possibilities of what can happen.. When you take your name off the deed you have no claim to the house I believe. You would want to have the paperwork ready to go ahead of time......... so once it records you add your name back on.. Good luck...
0 votes Thank Flag Link Mon Apr 8, 2013
In most cases, the interspousal deed will only remove your name from the title of the property, not the mortgage note. To do this, your spouse will have to refinance in order to novate you from the mortgage, the process I assume you are in the middle of. Once this the new mortgage is funded and recorded, your title company can prepare the documents needed to be put on the deed. You will not have any responsibility for the mortgage, as you will no longer be on the note tied to the property.
0 votes Thank Flag Link Mon Apr 8, 2013
Simple answers - YES and YES
0 votes Thank Flag Link Mon Apr 8, 2013
Thank you!
Flag Tue Apr 9, 2013
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