AOS question for upcoming interview

[Balamban 113]

We have our interview scheduled in about 3 weeks.

 

She (the immigrant) has no medical insurance.  Will this create a red flag?

 

We both looked over ACA offerings and frankly we'd rather go naked.  Spare me please the nightmare stories, I'll agree that Americas has a nightmare medical/insurance situation and we are well aware of the risks.  Still, in about 8 weeks she'll start a new job (if EAD is approved) as an LNA and that will bring mediocre insurance but better than what we could get on ACA.

 

I'm on Medicare, so there is no spousal option since she is younger.--

 

Thanks in advance for the feedback.

[Alabamak1 688]

it shouldn't be a red flag, but what you do want is other evidence of financial commingling. Joint checking or savings account, beneficiary on something like 401k, joint lease, some type of utilities or such evidence. You would not be the first couple who attended an interview w/o medical insurance. 

[Balamban 113]

Thanks Alabamak.  We can't have a joint lease since I (the American citizen) owns the house (a triplex).  She is a signor on two credit cards and we have had a joint checking account for months.  The 401k beneficiary is a good idea and I'll go joint with electric and oil company account.   

[Redheadguy03 505]

46 minutes ago, Balamban said:

Thanks Alabamak.  We can't have a joint lease since I (the American citizen) owns the house (a triplex).  She is a signor on two credit cards and we have had a joint checking account for months.  The 401k beneficiary is a good idea and I'll go joint with electric and oil company account.   

You could put her on the title for the house. Or is it just you? 

[Balamban 113]

Of course it's me--who else would it be, haha....  Actually I'm not sure about the ramifications, tax-wise, legal-wise and exactly how to do that.  Do you know Red?  Is it go down to Registrar of Deeds and say "do it," or does that need a lawyer?

We (I) own a triplex.  It has a net value of ~80k.  Let's say something happens and a person is injured on the property and is awarded 1 million $, and insurance covers 250k.  If she is put onto the title then she is jointly on the hook for (the unlikely scenario) of $750k.   It's a good suggestion though.  More information if you know how please.

 

[Balamban 113]

After looking up "putting spouse on deed" I came across this,

 

"The deed is the document that names the owner(s) of the property.

The mortgage is the instrument that pledges the property as security in case a loan ( note) is not repaid.

 

The mortgage that we get to buy or refinance a house is comprised a note and the pledge of security for that note.

 

Therefore, the mortgagor wants all people that own the property to pledge it as security for the note. 

However all of the people that are on the deed and the mortgage do not have to be on the note. 

 

If you own a house with a mortgage and note on it, and then add someone to title, you have in fact broke the terms of the mortgage and given the lender the right to foreclose. you have invoked the alienation clause in the mortgage contract which requires that the note be paid off prior to any transfer of title.

 

So in short if you are on title or on the deed), you have to be on the mortgage.

However, if you are on the mortgage you do not have to be on the note."  https://www.trulia.com/voices/Financing/can_a_person_still_have_name_on_deed_but_not_mortg-256452

 

So it seems easy to put a person on the deed (~$100) but then what about the ramifications of having the person on the mortgage?

 

It's the questions that make me uneasy, rather than the actual doing it.  With creditors, the world we live in is not always a kind one..

 

Thoughts wise folk of visajourney?

 

 

[eckoin 211]

We didn't put myself on the title of the house either, even though it's apparently straightforward to do so. Just lazy mostly. No comment on liability. 

 

However, since you mention homeowners insurance, I just want to say that you legally have to add her to it if she lives with you, at least in my state. Every adult that resides in the home must be on the homeowners, in case anything happens, since the insurer needs to know who lives there. It's the same with auto insurance--you have to add all drivers in your household who are able to drive, especially a spouse, even if they don't drive. 

 

There are no legal ramifications for adding your wife to your homeowners that she wouldn't already be liable for by living there--if my understanding is correct. In your scenario of a net liability of $750k, I imagine they'd go after the homeowner anyway, and once insurance paid out, there's nothing that the people on the policy have to do pertaining to the policy itself (just personally liable for the rest, not related to insurance). By her living with you, they might put her in the suit anyway, though whether that has any basis or not is questionable. I think it's a bit of an out there scenario anyway, but I understand your concern. Why don't you call your insurance office and ask for a peace of mind? 

[Chocobo 196]

On 1/5/2019 at 9:49 AM, Balamban said:

 

So it seems easy to put a person on the deed (~$100) but then what about the ramifications of having the person on the mortgage?

 

I'm not sure if you're asking, meaning that putting a person on the deed is the same as putting them on the mortgage, or if you're asking about the ramifications of just the mortgage part.

 

If you add your wife to the title of the property (i.e. recording a quit claim deed having both your name and her name on it), she will have partial title to property, but will not automatically be liable on the mortgage as the mortgage is between you and the lender.  If you wanted to add her to the mortgage, you'd need to take out a new mortgage/refinance.