Another Gov’t Shutdown Update; Must Be On Title If On Loan; Title Only
GOVERNMENT SHUTDOWN NOT AN ISSUE FOR MOST BORROWERS
I read recently that there are buyers waiting on the sidelines b/c of concerns about the government shutdown. They shouldn’t be b/c the shutdown is not affecting that many buyers.
There are some issues causing delays such as furloughed employees not being able to close until they are back at work, or borrowers not being able to get their recently filed tax returns stamped.
But the vast majority of our transactions are closing without issue. So, there is no reason for most borrowers (or agents) to be concerned about the shutdown.
IF ON LOAN, MUST BE ON TITLE
This is just another reminder that borrowers have to be on the title of the property if they are on the loan. Borrowers cannot be on the loan only.
TITLE ONLY IS ALLOWED
Individuals can, however, be on title only but not on the loan.
CAN’T QUITCLAIM OFF LOAN
Once a borrower is on the loan, the only way to get off the loan is by refinancing into an entirely new loan with a new/different borrower. Borrowers sometimes mistakenly believe that they can simply quitclaim off title and then no longer be responsible for the related mortgage loan.
That is not the case, however. Borrowers remain 100% responsible for their mortgage loan even if they quitclaim off title.
