Posted on: 14th Apr, 2010 08:19 am
i read this gentleman's email about the novation and i am in the same situation but on the other end. i am supposed to refinance but have been denied to due to value of my home vs what i owe. i have been making payments and can continue to do so. however, i have contacted my mortgage company and they have no idea what 'novation' means. where to i go to find out if i qualify for this?
qualifying for a novation is one thing, but persuading your mortgage lender that it can offer it to you is quite another. if they've never heard of it, then you can undoubtedly count on them not being able to offer it to you.
i don't believe most lenders, these days, offer novation anyway. it's largely because lenders like to have as many obligees on a mortgage loan as possible, and dropping one isn't necessarily beneficial. also, given your lack of equity, i'd think they will want to keep as much security as possible by having all original signers remain obligated.
i don't believe most lenders, these days, offer novation anyway. it's largely because lenders like to have as many obligees on a mortgage loan as possible, and dropping one isn't necessarily beneficial. also, given your lack of equity, i'd think they will want to keep as much security as possible by having all original signers remain obligated.