Legal Question in Real Estate Law in Illinois

The title company should not be insisting that he be on title (a deed conveying an interest to him). The lender may require it if his income is needed to qualify. The title company would require that he sign the mortgage regardless, but not the note (unless the lender has him on the loan). Signing the mortgage is just done so the lender has a clean mortgage free of any spousal rights that arise. In other words, if the lender had to foreclose, your husband would not be able to step in and say that they cannot because of his interest in the property. His name may also show up on the title commitment, since he has a spousal interest, but he does not have to be on title to the property.

Concerning the bankruptcy, he should speak with his attorney. If changes arising from your marriage were not addressed previously, it is possible that his plan should have changed and that amended documents should have been filed. The refinance itself may impact the plan.

The scope of this space does not allow for enough information and interactive conversation to advise you on either the refinance or his bankruptcy. The closing attorney and the bankruptcy attorney should be evaluating and advising.