Non-borrower signing requirements?

Financing, Hard Money Lenders, Private Money
1

Hey there,
Quick question for you guys out there. I have a rental property in Texas that I’m about to refinance (I live in CA and my wife is not on the title). I received all the paperwork and I guess everything looks good, but there is some paperwork I’m unsure about. It’s called a “Non-borrower signing requirements disclosure”. It says my wife needs to sign the:

Deed of Trust or Mortgage and all attached riders,
Notice of Right to Cancel (if the loan transaction is rescindable)
Truth-in-lending Disclosure Statement and
Name and Signature Affidavit

It says “By signing these documents, the Non-Borrow does not become obligated on the note. Only persons who sign the Note will be obligated on the Note. By signing the Deed of Trust or Mortgage, the Non-Borrower pledges his or her interest in the Property as security for repayment of the Note. If the Borrower defaults on the loan, the Property and the Non-Borrower’s interest in the Property could be lost to foreclosure…The signature of the Non-Borrower on the security instrument does not obligate the Non-Borrower to re-pay the debt.”

So, it seems like Texas is in a “community” state and so my wife has to sign, but, I guess I don’t trust the banks and so I wanted other opinions on whether or not she really needs to sign. The property is my deal, not hers and I don’t want her to be obligated if anything were to happen to me or whatever.

So, does she really have to sign?

Thanks very much!

2

Yes, if you want the loan she must sign.
Because TX is a community property state, she has to agree to give up her “share” of the property if they have to foreclose.
My wife has had to sign these documents for all the properties we have liens against except our Home. It’s pretty standard.

You are also signing a bunch of documents that say you’re not living in this house.
This protects the bank from Homestead protection laws if they have to foreclose.

3

OK Pete. Thanks very much!