Does the bank have the right to foreclose on my home if it is only my wife is on the loan?

My wife and I purchased land, built a home with our cash and a small bank loan; this was 19 years ago. It was titled in both of our names. My wife subsequently took out a mortgage on this property that is only in her name and that mortgage is about to be foreclosed. There are no other mortgages or liens on the property. Do they have the right to foreclose on this when I’m not a party to the existing mortgage and I was recorded on the title before the existing loan?

Asked on September 6, 2012 under Real Estate Law, North Carolina

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If you were on legal title to the home that you are writing about before your wife placed a loan on it in her name where the loan was secured by a recorded mortgage or trust deed (signed solely by your wife and not you) after your name was on legal title, the lender can foreclose on your wife's interests in the property if the loan is not being serviced but not yours.

The rationale is that you were on legal title to the home before the mortgage or trust deed were recorded and you did not sign the mortgage or trust deed. I suggest that you consult with a real estate attorney about your situation to make sure you were on title before the mortgage or trust deed were recorded on the property and you did not sign those documents.


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