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#1836319 - 07/25/13 03:13 PM Homestead for Separated Borrower
Bec Offline
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Bec
Joined: Jul 2010
Posts: 1,114
The Great White North
Hi all. I have a borrower that would like to obtain a HELOC for her homestead property. Currently her spouse and her are separated, he rents and she purchased her current resident with cash and would now like to make some improvements. Technically this is a refinance so my question to you WI Marital Property experts is would we need the non residing, non-titled and non-signing spouse to sign off on rescission? Do we need to send him any notification at all? I am thinking that this is homestead regardless of them both residing there so he would have to sign rescission at the least but I am not sure.
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#1836931 - 07/26/13 04:36 PM Re: Homestead for Separated Borrower Bec
Truffle Royale Offline

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Are they legally seperated with paperwork or just living apart?If it's the former, the seperation docs might help you figure this out because both homestead and marital property COULD come into play even tho one spouse can buy without the sigs of the other.

Even tho the wife paid cash, this is treated as a cash out refi. So the husband must sign Deed, Final TIL and RoR, even tho it's not technically his homestead.

If you have legal counsel, you could check with them. I'd suggest you do it by email so you get their response in writing to document your file.

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#1837265 - 07/29/13 03:36 PM Re: Homestead for Separated Borrower Bec
Beagles22 Offline
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Joined: Jan 2004
Posts: 3,626
State of confusion
I agree with Truff - in addition, check with your title company. For instance for my local title company:

If legally seperated, but not legally divorced, they require that both sign the mortgage. They are still husband and wife.

If quit claim deed has been done - doesn't matter - they are not "single individuals'

The only way around this is if legally separated to have the one leaving the mortgage and title have drafted and signed an Alienation of Homestead.
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#1837342 - 07/29/13 06:01 PM Re: Homestead for Separated Borrower Bec
Truffle Royale Offline

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Thanks, BQ. I'd forgotten about the Alienation of Homestead.

Basically, if the divorce isn't final, doesn't matter if he lives with her or not, on a refi he has to sign the Mortgage, Til and RoR OR do the Alienation of Homestead.

If she were buying new property, he wouldn't have to be a part of the mortgage aspect of it. The fact that it would need to be addressed in their divorce would be immaterial to the loan.

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#1837872 - 07/30/13 09:14 PM Re: Homestead for Separated Borrower Bec
Beagles22 Offline
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I agree 100%
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