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Refinance in California-a Community Property State
In California, to refinance a property I owned before marriage does my spouse need to sign?
Underwriting wants me to write a letter on my late payments and charge the account off. What should I write?
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1 Reply
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California’s Guidelines on Refinancing a Property Owned Before Marriage
In California, whether your spouse needs to sign to refinance a property that you had pre-owned before marriage depends on certain criteria:
Home Allocations: If both of you have had the home title assigned to you before your marriage, it will be treated as your separate property. Generally, in this circumstance, you can refinance without your spouse’s signature as long as you are not putting them on the deed.
Mortgage Requirements: Many lenders may still ask for your spouse to sign the refinance documents even if the property is not joint for legal purposes, as in that case, they can claim the household income and assets.
Matters Concerning Community Property: California is a community property state, and if you were to refinance this and increase the debt burdens on the property, oftentimes, the lenders may require your spouse to sign out of course for the refinance, which will hold true to the changes that have been made regarding the debt.
Using a Letter for Late Payments and Charge-Offs
Dear borrower, Here is a letter structure that discloses a late payment and a charge account to an underwriter, i.e., whoever is coming up with the terms of the contract and the conditions.
Sample Letter
[Your Name]
[Your Address]
[City, State, Zip]
[Email Address]
[Phone Number]
[Date]
[Loan Officer’s Name]
[Bank/Lender’s Name]
[Bank/Lender’s Address]
[City, State, Zip]
Dear [Loan Officer’s Name],
I am writing to address the late payments and the charge-off associated with my account [Account Number] as part of the refinancing process for my property.
Explanation of Late Payments:
I acknowledge that I made late payments to my account during [specific period]. The delays were primarily due to [briefly explain the reason, e.g., unexpected medical expenses, job loss, etc.]. I take full responsibility for these missed payments and understand their impact on my credit history.
Charge-Off Details:
The charge-off occurred on [Date] due to [reason for charge-off, e.g., prolonged delinquency]. Since then, I have taken significant steps to improve my financial situation, including [mention any relevant actions, such as making timely payments on other accounts, budgeting, or improving income].
I am committed to maintaining a responsible financial path and have learned from these past experiences. I appreciate your understanding and consideration regarding my application for refinancing.
Thank you for your attention to this matter. Please let me know if you need any further information or documentation.
Sincerely,
[Your Signature (if sending a hard copy)]
[Your Printed Name]
When refinancing in California, check with your lender regarding your spouse’s signature requirements. For the letter addressing late payments, be honest and concise, explaining the circumstances and your commitment to better financial management moving forward. If you have further questions or need more assistance, please ask!