Name on Deed: Foreign National
Hello. My husband and I are about to close on a house in Brooklyn. Since I’m not an American national and don’t have an American credit card, we decided to leave my name off the mortgage application. The bank we’re going with furthermore required that my name is not on the sales contract, because I’m…
Hello.
My husband and I are about to close on a house in Brooklyn. Since I’m not an American national and don’t have an American credit card, we decided to leave my name off the mortgage application.
The bank we’re going with furthermore required that my name is not on the sales contract, because I’m not the one getting the mortgage.
Now, shortly before closing, we’re finding out that my name also can not be on the deed, because I don’t have a green card, nor citizenship.
We’ve received various comments on how to deal with this, some of which contradict each other:
Initially I thought that the only way we could get around this would be to look for a completely new bank. Then I was told by the mortgage broker that this is not a requirement by this particular bank, but by Fannie Mae. The attorney, on the other hand, says that that can’t be correct, and that it must be because the bank does not deem the property habitable. The attorney seems to think that after the renovation is done, we can refinance. The mortgage broker thinks that we can refinance once I have a green card.
It’s very confusing and seems impossible to get a clear insight into what the problem really is.
Does anybeody know what the current regulations are? Also, would I be equally protected if my husband and I merely wrote a contract saying that the house belongs to both of us (for example if he were sued)?
I’d be grateful for an answer.
Best,
Nora
It is discriminatory. File a compaint with the human rights commission. They act as your lawyers free of charge.
Its a big fat lie from the lazy and ignorant. Plenty of foreign nationals own property in the US. Try this put the deed on one name, When everything is finalized change the deed to tenants with right of survivorship. Youe name can be added to the deed.
I’m not exactly sure what you are concerned about. Should your husband die, the house can be left to you regardless if you are on the deed or not.
If your husband loses his job but you are separately still financially ok, you can make the mortgage payments, it will not matter that you are not named on the deed. As long as the bank is receiving timely mortgage payments, they cannot foreclose on your home.
Should your family stop making mortgage payments on the home, it will be foreclosed on whether or not you are named on the deed or mortgage.
You will not lose the house upon his death if you get some estate planning done. If it remains inb his name alone he can put it in a revocable trust for you. There are other options but you need to consult an estate lawyer.
Shoot me an email if you like and we can discuss. I can most likely get it done for you. adahill (AT) wcslending.com
Can’t you be added as a tenant in common on the deed?
Thanks for all your comments.
Just to clarify: my primary country of residence is the US. I’m employed full-time by a university here, have an H1-B visa and a Social Security card. I just have never owned an American credit card. I realize now that that was a mistake, but there is nothing I can do about it at this point.
Maybe I can show the bank my German credit history and try to get on the mortgage that way?
For me, the main issue is not a possible divorce or death of my husband – I’m protected for that through our pre-nups. I am more concerned about a possible foreclosure, should anything happen to my husband (see setancre’s comment). As far as I understand, if the property is only in his name, we will lose the house, even if I am financially fine.
Would it make sense to get a portfolio loan, which is not sold to Fanny Mae/MAc?
What would putting the property in a trust do?
Could the property be put into a trust, in both names, after the closing?
If the house is purchased while you are both married in NYS then it is considered a marital asset and barring a prenup that says otherwise, you are both entitled to 50% of the house in the event of a divorce. Many married couples used to have this situation when the wife stayed home and had no assets/income and wasn’t on the deed; doesn’t change her equal ownership of the home.
The one consideration I might have is that it’s beneficial to put yourself on the mortgage only to generate some positive credit history. Being on the deed really doesn’t mean anything.
Also, with the wave of foreclosures recently the bank doesn’t like any names on the deed that aren’t on the mortgage because in the event your husband defaults on the loan, you are still a separate owner of the home that doesn’t owe anything to the bank. This makes it more complicated for them to foreclose (still possible, just more legal hoops to go thru).