Real Estate Q&A

Q. I want to buy a home and I am in the process of a divorce which is not yet final and the lender insist that my soon-to-be former husband must sign the mortgage agreement, why is this?

A. The mortgage agreement gives the lender the right to foreclose if the borrower defaults on the loan. However, a spouse who hasn’t signed the mortgage agreement may be able to assert homestead rights, making foreclosure difficult. Therefore, if property could be considered the buyer’s homestead, most lenders require the non-owning spouse to sign the mortgage agreement for the sole purpose of waiving homestead rights. So, it is a good idea for the mortgage to include language stating that the spouse is signing only to satisfy the spousal joinder requirement contained in the Florida Constitution and that the spouse isn’t assuming any liability or obligation in the note or mortgage. Make sure the non-owing spouse reviews the mortgage agreement carefully to ensure the terms are consistent with his or her understanding.hts, making foreclosure difficult. Therefore, if property could be considered the buyer’s homestead, most lenders require the non-owning spouse to sign the mortgage agreement for the sole purpose of waiving homestead rights. So, it is a good idea for the mortgage to include language stating that the spouse is signing only to satisfy the spousal joinder requirement contained in the Florida Constitution and that the spouse isn’t assuming any liability or obligation in the note or mortgage. Make sure the non-owing spouse reviews the mortgage agreement carefully to ensure the terms are consistent with his or her understanding.

Posted by Donald Urschalitz P.A. at January 15, 2005 11:47 AM