Thread Options
#2269436 - 04/20/22 11:06 PM "Borrower" definition on Deed of Trust
Tarhe Online
Diamond Poster
Joined: Nov 2006
Posts: 1,244
California
We have a mortgage loan to a husband and wife, both signing on the Note as co-borrowers. The husband owns the SFR as his sole & separate property. The Deed of Trust defines "Borrower" as only the husband. It does not name the wife as a Borrower - even though she signed the Note. I am told this is how the software does it and this is standard among mortgage documents. Is this okay then? Or should the wife be included in the definition of Borrower on the Deed of Trust? (Maybe a legal question and I need to consult legal advice.)

Return to Top
Lending Compliance
#2269450 - 04/21/22 02:01 PM Re: "Borrower" definition on Deed of Trust Tarhe
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,293
Galveston, TX
Does your deed not define the "Borrower" as follows: Borrower is the grantor under this Security Instrument.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2269453 - 04/21/22 02:35 PM Re: "Borrower" definition on Deed of Trust Tarhe
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,344
Look at Section 13 of the mortgage for more help. There are other factors to consider too. Is the property homestead? Is it in a marital or community or dower property state? All of these things effect how your docs should be prepared.

Return to Top
#2269462 - 04/21/22 03:28 PM Re: "Borrower" definition on Deed of Trust Tarhe
Tarhe Online
Diamond Poster
Joined: Nov 2006
Posts: 1,244
California
The Deed defines "Borrower" on page #1, item (B) under definitions as: ""Borrower" is John Doe, a married man as his sole and separate property." I looked at Section 13, and it refers to someone who is on title but who does NOT sign the Note. This is the opposite of our loan which has the spouse signing the Note, but she is not on title. The Deed does not define "Grantor" - only "Borrower" - who is the one agreeing to all terms in the Deed. So, based on that, it would seem Mrs. Doe should not be named in the definition of "Borrower" since she would not be agreeing to any of the Deed's terms? The definition of Note and Loan refer only to the Note signed by Borrower - it does not include any co-signer references.

Return to Top
#2269464 - 04/21/22 03:45 PM Re: "Borrower" definition on Deed of Trust Tarhe
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,293
Galveston, TX
So, do you still have a question? I could not really tell.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2269465 - 04/21/22 03:52 PM Re: "Borrower" definition on Deed of Trust Tarhe
Tarhe Online
Diamond Poster
Joined: Nov 2006
Posts: 1,244
California
I'm sorry, yes - I still have a question. My concern is that Mrs. Doe is not named as a Borrower on the Deed of Trust - and is that okay? Or perhaps what I've stated above answered that and this is typical for how this transaction should be shown on the Deed? It just seems odd that the Deed does not reference that it secures a Note with 2 borrowers, not just Mr. Doe. Thank you.

Return to Top
#2269467 - 04/21/22 04:11 PM Re: "Borrower" definition on Deed of Trust Tarhe
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,293
Galveston, TX
The deed defines a borrower, which has no relationship to who is signing the note it is securing,
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2269468 - 04/21/22 04:12 PM Re: "Borrower" definition on Deed of Trust Tarhe
Tarhe Online
Diamond Poster
Joined: Nov 2006
Posts: 1,244
California
Thank you - I appreciate the help.

Return to Top

Moderator:  Andy_Z