Legal Question in Real Estate Law in California

Re: property title

First of all, I assume the property is in California.

In a refinancing, the paid-off lender relinquishes equitable title-in-trust and the new lender obtains equitable title. Beyond that, the refinancing does not affect legal title and, ordinarily at least, your wife is just as much an owner after the refinancing as before. Therefore, it is hard for me to grasp what problem you may have with respect to your wife being "on title" after the refinancing.

If indeed some adjustment to the way legal title is held is necessary, a properly filled-in quitclaim deed can accomplish the desired result. However, to get it right and avoid complications (including taxes) you should have a California real-estate lawyer in the county where the property is situated prepare and record the quitclaim for you. It should cost very little in proportion to the property's value and costs of litigation that you or your heirs might experience in the future.

As to the loan, the same questions apply. Normally, a lender will require all owners to sign loan documents and become co-borrowers. It is theoretically possible for one of two or more co-owners to (re)finance his or her interest in a parcel of real property without involving the other, but as a practical matter this rarely happens because a half-interest isn't good collateral. Further, if the property is held as community property (as distinguished from a tenancy in common or a joint tenancy), both spouses must sign. Therefore, I am inclined to think that your lender researched title and found that your wife had no legal interest in the property immediately prior to the refinancing. It is remotely possible that some other explanation applies, including a mistake by the lender.

If you can provide me with some additional facts, I may be able to give you a better answer.