Greer said:
If both of their names are in the title, she can’t take out a loan against the house without his signature. If the house is only in her name, she can do whatever she wants with it.
I mean OP clearly is fumbling with terms and what is legal here - OP knows their father says they both own the home - legally that may even be true - who is on the deed for sure is unknown unless OP went down to the records office and looked it up.
Based on the rest of his post, I do not believe that has happened - if both parents are on the deed, it’s very unlikely she could get a loan.
What is rather likely (and Rocket would be required to say this) is that she could take out a mortgage without her husband’s permission—on a property that she is either buying or where she’s the only person listed on the deed. The loan officer can’t use her marital status to approve or deny a loan—because of this, it’s also very possible that OP’s mother was asking the wrong questions to the loan officer and/or got answers that don’t actually align with reality.
It’s very possible to have a deed with only one person listed on it. If OP is worried, they need to go down to the county clerk’s office and get a copy of the deed to see who’s name is listed on it. Given the title says she plans to do this ‘next year,’ OP should have plenty of time to get this done to see what the next step (if any) is.
@Wil
Texas has 277 counties. Not all are electronic yet. Most are, but not 100%. And of those online, it’s hit and miss which ones are free and which ones contain good information or not.
Greer said:
If both of their names are in the title, she can’t take out a loan against the house without his signature. If the house is only in her name, she can do whatever she wants with it.
Not completely true in Texas. If he has a community property interest in the house, she cannot grant a valid mortgage (deed of trust) on his half of the property. She can take a loan out. And she can grant the lender an interest in her half. But not the whole property.
Unless she’s got a POA or some legal authority to act on his behalf. OP, get with a real estate attorney in Texas.
Greer said:
If both of their names are in the title, she can’t take out a loan against the house without his signature. If the house is only in her name, she can do whatever she wants with it.
My concern would be if it’s all e-sign, she can easily just sign everything for him, and proving that down the line could be difficult and will create a huge mess.
This is never going to happen. Getting a home loan is not as simple of a process as you seem to think it is, or as Rocket Mortgage would like you to believe. There are two major steps that will keep this from happening. First is underwriting. While it is true that someone can get a home loan in only their name, she will have to prove that she is going to have the ability and willingness to pay it back. Rocket Mortgage’s website and salespeople will make you think everything is great, but underwriting is highly regulated and taken very seriously. They will look very closely at her income and history, and if she truly has never paid anything back, there is zero chance an underwriter will approve this. Plus, they will have to have approval at this step from everyone with an interest in the house to even go through the process. While underwriting is going on, there are numerous documents that need to be filed, letters that need to be signed, and question upon question. I’ve gotten many home loans and refinances, and this process is long and arduous, and extremely thorough.
The second is in the closing. This isn’t done through Rocket Mortgage or a bank; it is through a title company. Again, while a person can get a loan in only their name, they cannot get through closing without everyone on the deed signing off on it because you are signing away (partial) ownership of the home. The title company has to look at the history of the house to figure out who is considered currently on the deed (a deed normally isn’t a particular document, but is a result of looking through all of the title and lien paperwork filed with the government to see who currently has an interest in the house), and anyone on it must sign off on adding the new lien-holder to it.
You really can’t stop someone from taking out a mortgage on their own home. Does your dad want to try to stop her?
I’m 24; my dad wants to stop her.
If he lives there, he can just refuse to sign the documents. No problem. If he lived in the home and has part ownership, he can refuse to sign. And, like others have said, she has to be credit-worthy to even begin the loan process.
If you want to know more about it, contact a lender and ask them what the requirements are in your state. I am a mortgage professional, btw, but it does depend on the state and how the home is held (meaning if your dad has a say). Most likely, he can stop the process by not signing. Your dad can also speak with an attorney or a financial specialist. Either should be able to help. Good luck!
@Zadie
I don’t think I would trust that the loan won’t be issued if he doesn’t sign. I would want to take some sort of action rather than rely on no action. Know what I mean?
Tracy said: @Zadie
I don’t think I would trust that the loan won’t be issued if he doesn’t sign. I would want to take some sort of action rather than rely on no action. Know what I mean?
Personally, I would find a lawyer fast to see if something needs to be done and, as someone already suggested, call the loan company and get clarification. Let them know about the co-ownership and her debt and intentions.
I am reposting this since I had responded to another response to a comment that is now deleted. You need to hear this OP. Texas is a community property state and any lender who knows what they are doing, which Rocket Mortgage does, will require both spouses to be on the mortgage (called a deed of trust in Texas) which is the document giving the lender a lien on the property.
While it is true that one spouse has to sign the promissory note (the document establishing the loan and obligation to pay the bank back the money), the second spouse has to sign the deed of trust. This is true even if only one spouse is on the vesting deed—unless that spouse can establish the property is ‘separate property’.
Did your mom inherit this house from her parents or anyone else? Was it gifted to her by someone? Did she purchase it before she and your dad were married? If yes to any of those, she may be able to do this without his consent. But if they bought the house while they were married, she simply cannot do what you are saying you’ve read they can do.
They don’t just give loans to anyone. It’s a huge approval process and it seems unlikely that she will qualify for a loan with that much consumer debt, especially if she isn’t paying it back at the moment.