Often, when a person applies for a loan or mortgage, the borrower’s spouse is required to the loan or mortgage documents. This is especially true when the property which is made the security or collateral for the loan or mortgage is a piece of land that is conjugal or co-owned by legal spouses. This happens when a husband or wife individually applies for a loan and puts up the family home as security for the repayment of a loan.
The spouse negotiating the loan is usually knowledgeable about the transaction and has been kept well-informed by the creditor. It very often happens that the spouse of the borrower is only informed of the loan or mortgage when his or her signature is required on the documents.
Please note that the conformity or agreement of the spouses is a requirement for due execution of the transaction. This means that both spouses must have read and understood the loan documents. Both must be duly informed of the amount of the loan and the manner of payment as well as the length of time they have within which to repay the loan. Most importantly, both spouses must be duly informed of the consequences in case of nonpayment or default. Both spouses must know that the property which they put up as security may be taken by the creditor as payment for the loan which was not duly paid.
Most of the time, spouses who are not the main borrowers are not duly informed. Or, if they are duly informed, the spouses do not agree as to the terms. Some spouses are quarrelsome. Some spouses refuse to sign the loan documents. In this case, the notary cannot close the transaction and the signing of the loan will not proceed.
It is not surprising when spouses fight or argue before the notary as to the terms or proceeds of the loan or mortgage. In this case, the signing cannot proceed as there is consent on the part of both of the spouses who stand to be equally bound to pay for the loan.
The notary will need to inform the creditor of a lack of consent. The notary will not proceed to the signing and closing of the transaction. The notary can direct the spouses to obtain the services of a lawyer who can sort through their disagreement or explain to their satisfaction those issues that are contentious.
Once the spouses are in agreement and exhibit consent in executing the transaction, only then can they affirm before the notary that they understand the terms and undertake to abide by them. The notary will then ask for proofs of identification such as driver’s licenses or passports or social security cards. Official or government-issues identification cards will be useful for the purpose.
If the spouses are legally married, their marriage certificate may be required by the notary. If they are divorced but they still co-own the property which will be mortgaged, the notary will require a copy of the divorce decree. These documents will be the basis for determining the individual liabilities of the spouses to repay the loan. The notary can then proceed to close the transaction
Notaries need to be competent, experienced and efficient. For help in obtaining the services of a notary in the Brooklyn, Queens or New York City areas please send an Email or call us at 718-701-0095. Our notary is a duly licensed Attorney and commissioned Notary in the state of New York. She travels to jails, businesses, homes, nursing homes and hospitals.