05.18.07
Question:Note vs Mortgage
Jeanne: Sometimes under residental financing only the husband (or wife) will sign the note (per bank instructions) although both are in title. However, the standard residential mortgage usually assumes that the “mortgagors” are one and the same as the “borrowers, who signed a note of even date” and since under this scenario that is not technically true , could the bank have trouble triggering a foreclosure against both without a proper reference in the mortgage (nexus) reflecting that it is securing a “note signed only by ________(husband) ? I believe that unless all owners sign the note you should use a Guarantors Mortgage. Would title insurance protect a lenders decision to have less than all sign the note? Is it escrow’s responsibility to advise a lender on this?There are many other possibilities : Mary Smith Trustee in title but only Mary Smith individually signs the note? Thanks, Edward