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What is Community Property? RJ Baxter First Mortgage Corp Evergreen Colorado

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Mortgage and Lending with Clear Path Home Loans NMLS #395819, #2564260

What is Community Property?  RJ Baxter First Mortgage Corp Evergreen Colorado

This article is a brief overview of Community Property title vesting and summary of Community Property States.

As a nationwide bank, I handle many transactions in other states.  It is essential to understand the unique laws that apply in other states.

One of the key things that must be understood in every state is title vesting.  Most states allow for joint tenancy, but there are a handful of states that are Community Property states.  The Community Property states are: AZ, CA, ID, LA, NV, NM, TX, WA, and WI.

Community Property is a system by which a husband and wife automatically have equal ownership interest in all property acquired during marriage.  In a Community Property state, any property acquired before marriage by one spouse, or inherited by one spouse during marriage, is considered Separate Property, and the other spouse does not have ownership interest.

In a real estate transaction, the signature of both spouses is necessary for conveyance of any property sold that is vested as Community Property, or any property acquired during marriage.

In the case of a mortgage approval, the liabilities of both spouses must be considered for approval, even if one spouse is omitted from the mortgage application for whatever reason, because one spouse's debts are also the other spouse's debts.  However, one spouse can still be omitted if necessary because of poor credit.

The Community Property laws originated from Germanic tribes and, through Spain, came to the Spanish colonies of the Americas.  That is why Community Property states are mainly in areas that were founded under laws of Spanish origin.

Get your Community Property and mortgage questions answered today!  Use our convenient Ask A Mortgage Expert self-help tool, or contact us at the number below.  We strive to provide honest and reliable advice for your home loan situation, and will provide a no obligation consultation at no cost.

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RJ Baxter- Branch Manager, Educator, Speaker, Mountain Biker, Broncos Fan, Snowboard Shredder, Father of Two Crazy Kids

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