At a refinance closing, the borrower's spouse, who is not on the loan but is on the title, refuses to sign the mortgage documents, claiming they were not properly notified. The borrower insists on proceeding. What should happen?
Correct Answer
B) Cannot close until the spouse signs or is removed from title
In most states, all parties on title must sign the mortgage documents to create a valid lien against the property. If a spouse is on title but refuses to sign the mortgage, the closing cannot proceed until they either sign or are removed from title through a deed transfer.
Why This Is the Correct Answer
In most states, all parties on title must sign the mortgage documents to create a valid lien against the property. If a spouse is on title but refuses to sign the mortgage, the closing cannot proceed until they either sign or are removed from title through a deed transfer.
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