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Foreclosure Forum |
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Ain't ever gonna happen...(nt)In Reply to: Marital Interest And Deed Complexities posted by SeanW on August 23, 2003 at 8:39 PM : Here's something I've never quite figured out. : Scenario 1: Suppose person X buys real estate and takes out financing. X marries Y. Even under equitable distribution laws, the house still solely belongs to X, since it was purchased prior to the marriage. : But if X refinances the house, then does the spouse get any martial interest in the property? : If yes, would the spouse have marital interest, even if X is the sole trustor on the new deed of trust? : If no, what happens if both X & Y are on the new deed of trust? That's probably quite likely, since the lender would want a married couple to be liable for the loan. : [My gut feeling about this, is that it doesn't make any difference what happens on the refi. The D.O.T. just specifies "who must give up their interest under foreclosure". Y is effectively just a co-signer on such a loan, and owns nothing until X dies.] : ----------------------------------------------------------- : So, if I'm right about that... what about the more complicated situation? : Scenario 2: X and Y are married, and X buys real estate. The deed, and deed of trust are solely in the name of X. (Therefore Y has implied marital interest to the land under equitable distribution, even though that spouse is not on title.) : Would a foreclosure only force the sale of X's interest? Did Y need to be named on the deed of trust, in order for that spouse's interest to be sold too? : [My gut feeling here, is that it again doesn't matter-- because X & Y are the same unit as tenants of the entirity. But I'd hate to be wrong... and discover I bought half of something!]
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