Once the wedding bells have rung, it is customary to include the spouse in the deed to a home. But it’s also typical to forget to name her as an insured on the homeowners policy. Additionally, most lenders won’t just add a spouse to an existing mortgage because they might want to refinance instead, which would result in additional fees and possibly unfavorable terms. This restricts the wife’s rights to just owning the property and prevents her from accessing any documents on which she is not expressly named.
Just because a wife is listed as a named party on a deed does not automatically grant her access to mortgage or insurance information.
Understand Rights Granted by Deed
A wife has a legal claim to the family home when she is named on the deed, and she is also entitled to a fair share of the tax benefits and other advantages available to named homeowners. A California interspousal deed that can be downloaded from the law library of the county where the property is located makes it simple to add a legal spouse or registered domestic partner as a co-owner. Your wife has all the rights granted by it once it is signed in front of a notary, which entitles her to full possession of the property and everything on it.
Not Named as Insured
A wife is not automatically added as an insured party on a homeowner’s policy just because she is added to the deed. The wife must be added to the homeowners insurance policy by the husband, who is the property owner. Theoretically, if a house in San Francisco sold for $1 million, If a fire completely destroyed 61 million, which was insured at its full value, the husband, as named insured, might only receive half of that sum to cover his share of the property. However, any money received would become the husband and wife’s joint property.
Not on the Mortgage
Even if her name is not on the mortgage, the wife may still make payments. If there are any errors, such as a payment that isn’t credited, she won’t be able to contact the loan company. She won’t be able to inquire about adjustments to the escrow impound account either. By signing a third party authorization form with the mortgage company, her husband can add her as an authorized third party with access to loan information. If her husband passes away, she can get in touch with the mortgage company to have her name added as a successor in interest even though she is not authorized as a third party. She must submit a certified copy of the decedent’s death certificate, a copy of their marriage license, and a copy of the deed proving their shared ownership in order to do this.
Since 2010, author Jodi Thornton-OConnell has been pursuing her full-time passion for financial literacy and real estate investing knowledge through writing. She simplifies the process of purchasing, renting, and investing in real estate in California.
FAQ
What does it mean if your name is on the title but not the mortgage?
If your name appears on the deed but not the mortgage, you are still the owner of the property but are exempt from responsibility for the mortgage loan and any associated payments. Even though only one spouse is listed on the mortgage, the lender may still foreclose on the house if you fall behind on your payments.
What happens if wife is not on mortgage?
Your spouse is not liable for paying the mortgage if they are not listed on it. However, if the mortgage is not paid, the mortgage lender may foreclose on the home.
What happens if my husband dies and I’m not on the mortgage?
When a transfer is made to a relative upon the borrower’s death, for example, federal law prevents the enforcement of a due on sale clause in those circumstances. Even if your name wasn’t on the mortgage, you can assume the existing loan after receiving the deed to the property and getting the lender’s approval.
Should my spouse be on the mortgage title?
There is no legal requirement that both partners be listed on a mortgage. Your lender will typically exclude your spouse’s information when determining your eligibility for a loan if they aren’t listed as a co-borrower on your mortgage application. This could either be a good thing or a bad thing, depending on your spouse’s circumstance.