Dually Licensed Dawn
Dually LicensedForum Replies Created
-
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!
-
Verification of Rent and Mortgage: Overview by Lender Type
Different lenders have different requirements for verifying rent and mortgage history while applying for a mortgage.
Below is a summary of several types of lenders, including HUD (FHA), VA, USDA, Fannie Mae, Freddie Mac, and non-QM.
HUD (FHA Loans)
Verification of Rent: In most cases, mortgages on FHA loans require verification of rent payments. It could be obtained through a landlord’s verification form, canceled checks, or bank account statements.
Verification of Mortgage: A warranty deed of the current mortgage should also be provided for refinancers.
VA Loans
Verification of Rent: Some documentation may be needed for VA loans to verify rent payments, especially if the borrower lacks a good credit profile. The same documentation methods as those used with FHA apply.
Verification of Mortgage: Confirming the current mortgage is a prerequisite for refinancing.
USDA Loans
Verification of Rent: In the same line, USDA loans would also require proof of rent verification, more so where the borrower uses the rent to supplement their creditworthiness.
Verification of Mortgage: Besides, the current existing mortgage would also need confirmation for refinancing.
Fannie Mae and Freddie Mac
Verification of Rent: Fannie Mae and Freddie Mac have very similar policies regarding rent verification, as the majority of their clients who request a loan lack a credit history (no score). Similar procedures may apply as employed by the FHA.
Verification of Mortgage: When refinancing, both Fannie Mae and Freddie Mac check the mortgage to be refinanced.
Non-QM Lenders
Verification of Rent: Qualified Mortgage Non-QM lenders appear to have less stringent guidelines and may not need the customary verification of the lease or rent. However, some papers may be required to determine the customer’s repayment ability.
Verification of Mortgage: Non-QM lenders usually require existing mortgages to be corroborated, but some issues, such as language, may be sufficiently different depending on the particular lender and underwriting guidelines.
In short, Fannie Mae, FHA, VA, USDA, and Freddie Mac usually only extend loans if they verify rent and the existing mortgage. Non-QM lenders can easily give loans as they can modify or even eliminate some requirements, but this depends on the lender. Always ask about the guidelines and requirements when referring to a specific lender.
-
In California, whether your spouse is required to sign a document to assist in refinancing a property that was owned by you before marriage is dependent on the following factors:
Property Ownership
If the property is only in your name and was purchased before the marriage, then that property is classified as your separate property. Thus, if the property does not include your spouse’s name on the title, it would be possible to refinance the home without your spouse’s signature.
Lender Requirements
Several lenders, including standard ones, will ask for both spouses’ signatures on some refinance documents, even if the property is owned solely by one of the spouses. This is frequently done so that all earnings and resources that the family owns are practically available to the lender.
Community Property Considerations
California is generally referred to as the community property state. When refinancing a property and increasing the property debt, the lender may require that the spouse sign to guarantee that the new obligation has been committed. This applies more when the consideration in question is a family home.
Adding Your Spouse to the Title
When refinancing the home and putting your spouse’s name into the title, they must be present when signing. It may also influence how that side property is owned and how the community property laws apply to the property.
Although lenders can allow you to refinance a property you own without your spouse’s signature before getting married, most may still request it. It is most prudent to check with your lender and even a real estate lawyer regarding your circumstances to ensure no irregularities.
-
Can you provide examples of how to handle crew expenses?
-
How do I allocate expenses between business and personal use?
-
What specific tax forms are relevant to this situation?
-
What if my yacht is used for both business and personal use?
-
What documentation is needed to prove business use?
-
How does Chicago’s corruption compare to other major US cities?