General Question

SuperMouse's avatar

Real estate question. Can a person be on the promissory note and not on the deed of trust?

Asked by SuperMouse (30842points) May 7th, 2009

I know that I can be on the deed of trust without being a signer on the promissory note, but can it go the other way? Aside from the issues of the borrower not having ownership rights, are there any legal reasons a person can be on the note but not on the title?

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5 Answers

YARNLADY's avatar

Yes, anytime one person co-signs for someone else, they are on the promise to pay. They don’t have to have any ownership in the property (real estate as well as auto). This is usually done by family members who believe they are helping out the borrower, but can be a separated/divorced spouse who signs off a quit-claim deed in the mistaken belief that gets them out of responsibility for the debt.

BBSDTfamily's avatar

Yes, they are two completely different things with completely different meanings.

SuperMouse's avatar

I understand the difference between a note and deed of trust. I am just wondering if a lender would have a problem making a loan to someone who is not on the deed. Although I suppose even if the person started out on the deed they could be quit claimed off.

BBSDTfamily's avatar

I see why you’re asking now… My answer is still the same though. I don’t think they would base their decisions off of that, but it’s definitely something you can ask up front. If for some reason they have a problem with it then go to the next lender.

augustlan's avatar

If you were the only name on the note, you’d have to put up something you own for collateral. If you are a co-signer, along with the owner of the property then it wouldn’t matter.

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