My wife's name is on title to a piece of property. I had to sign the mortgage with her a few years ago. Now, she wants us to sign a deed in lieu to give the property to the mortgage company. I don't want to. The mortgage company says that she can sign and they don't need me to sign. Is that legal? We never lived at that property. My name is not on the title.
I am going to move your question to real property to get you an answer
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Based on the information you've provided, she has title to the property, so only she needs to sign the deed.
You mention that you signed the mortgage, but did you also sign the note? Since she is looking at a deed in lieu, I assume the property is worth less than what is owed. If that's the case, expect the mortgage company to send a 1099-C for the difference between what is owed and what the property is worth. The 1099-C will go to whoever signed the note (either her or both of you) even if the mortgage company says they will not pursue a deficiency. The IRS considers the forgiven debt to be imputed income.
You may want to consider a short sale. The same 1099-C circumstances are in play, but you might get a better sale price. Either way, look into an appraisal or a real estate comparable analysis as close as possible to the date the title is passed to the lender. That may help you in arguing for a reduction in the amount of the 1099-C.
If you are not on the deed, then she can sign her interests away without your consent so long as it is not homestead property. Your wife should have the deed in lieu agreement reviewed prior to signing over to ensure that the lender is waiving their deficiency rights. Otherwise, you may find that the lender files suit to recover additional sums still owing on the note.
She can sign with a power of attorney
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I think your wife asked this question as well...the answer is a qualified yes. However, if you are married and live in this property it is homestead and your signature is probably going to be required at some time down the road, either in a quit claim deed or a waiver
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