Full question:
My husband and I have lived in our home for 26 years. We refinanced three years ago using only his financial info so the mortgage is in his name, even though on one page both of our names were listed as borrowers, does that mean that the property is now deeded in his name only or would the original deed from 26 years ago still exist? Thank you.
- Category: Real Property
- Date:
- State: Pennsylvania
Answer:
Generally speaking, a deed to the property whether is a warranty or quitclaim deed conveys title or ownership to a piece of real property. A mortgage or mortgage deed is the document creates a lien on the property in favor of the lender/bank. It does not create ownership in the property. A mortgage is signed by the borrowers to secure re-payment of a promissory note. If the note is not paid, the bank would have the right to seek payment through sale of the property since it was offered as collateral for the loan.
Warranty or quitclaim deeds contain specific language of conveyance that says ownership is passing from one or more people to another or others. Mortgage deeds have language that states the interest of the lender exists because of a promissory note. A lender would have to foreclose on the property (enforce the terms of the mortgage) in order to obtain actual ownership or title to the property.
Therefore, the names on a mortgage (meaning the borrowers) are simply the names of the people responsible for repayment of the loan. The names may or may not be the same names on the title (deed).
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
