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am moving my post here if that's ok as this section has more readers. I would appreciate any repsonse.

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What are the thoughts on this and is it reversible? The mortgage company is asking me to sign one as they say that since my husband is on the loan as the primary earner ( I have no income) that I need to sign a quit claim deed. I refused. Now we're at a stale mate as they are threatening not to give us the house. My credit is fine, their excuse is that I have a car payment in my name which would exceed the ratio of the loan (not according to a bank manager I spoke to). I also fail to understand why a car payment would not allow me to be on the title. The mortgage company claims that they will reverse the quit claim deed by having another deed signed a day afterwards which places me back on the title. I quite frankly think this is crap. Any thoughts as I'm more than upset by this.

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What it looks like is you and hubby's debt to income ratio (including your car payment) is too much for their underwriter to allow the loan to proceed. By you signing a QC, only his DTIR is considered.

Say you and hubby's monthly debt payments is $2,000, including your car payment. Now w/o the car payment the monthly payments are only $1,700. That $300 couls cause the DTIR to be too high, and not allow the loan to go through.

Are you trying to refinance?

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Not trying to refinance it's our first home purchase. I spoke to another lender who has all our information on file. According to her our debt ratio is fine. This whole process is apparently common procedure as this particular mortgage company forces all spouses that are not on the loan to sign a quit cleaim deed. I don't think this is right and they are trying to coerce it. Our debt payment is a grand total of 285 bucks for the car payment. Other than that we have no debt. There is basically no valid reason for this to occur as DH and I applied for a previous loan with a different lender and it was never a problem at all.

I really don't understand why we can't both be on the title, and if they feel the ratio is too high he can be on the loan himself.

It's basically a slap in the face as I repaired his credit so that we can buy a house and now this occurs. It does not seem logical. I can understand not being on the title if my credit would be disasterous and they would fear judgements but my credit is absolutely fine.

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It is a community of property state. My husband has no derogotory items on his credit at all. I also have letters from his past negative items, where the companies indicate that they apologize and are withdrawing the items from his credit and that they will not place it back on. The mortgage company has these letters so they know that no one is going to come after DH for anything. I've sent the mortgage company a letter specifically demanding their reasons as they are giving conflictig ones and have also consulted my attorney. He indicated not to sign it as there is no valid reason.

Thanks for all the replies and comments.

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Someone tell me if I am off base. Say she signs the Quitclaim - spouse then deeds the property back to himself and her as husband and wife as joint tenants after the loan closes and the original deeds are recorded.

She now owns a home AND is not legally responsible for paying the loan back, only her husband is as he is the only person who took out the loan. Since these are two separate transactions a piece of property can be deeded over to anyone without the original lender having a say.

God forbid... if they divorce or separate doesn't she make out and isn't this lender setting him (the husband) up to be in a potentially bad position?

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Someone tell me if I am off base. Say she signs the Quitclaim - spouse then deeds the property back to himself and her as husband and wife as joint tenants after the loan closes and the original deeds are recorded.

She now owns a home AND is not legally responsible for paying the loan back, only her husband is as he is the only person who took out the loan. Since these are two separate transactions a piece of property can be deeded over to anyone without the original lender having a say.

God forbid... if they divorce or separate doesn't she make out and isn't this lender setting him (the husband) up to be in a potentially bad position?

You couldn't simply change the deed, as there would be a lien from the lender on it.

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They could not change the Trust Deeds, but they can change how the title is held. She even states in the first paragraph that they will "reverse the quit claim". You can't "reverse" one - a new deed is recorded showing joint title. This doesn't change the trust deeds though and still puts them both on title to the house and only ONE of them liable for the loan. The mortgage company will not be putting her name on the mortgage or they would do that in the first place.

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The thing is that a quit claim relinquishes all ineterest, so even though he deeds the property back to both of us after the loan closes, guess what, the original quit claim deed still stands and in most cases can be argued favorably in court. Plus there is some major question as to how legal and ethical such a method is. I have no problems being on the loan but the mortgage company chose this way as I don't have an income. Now they are being stubborn as am I. By the way I have spoken to 4 other major banks. None force spouses to sign quit claims deeds in fact they were quite shocked to hear that this being practiced. The funny thing is that I placed DH on all my accounts to improve his credit rating.

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yep something is not right. I sent a fax describing my concerns about their unethical business practice including the terminology by my lawyer. well guess what, just received an email from the loan officer that now I can go on title and don't have to sign a quit claim deed. So what exactly was all the fuss about? I'm truly baffled.

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