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Company Loan Type APR Est. Pmt.

release of liability probability?

Posted on: 04th Mar, 2011 01:27 pm
I have a 1st with CitiMortgage for 350k on my house. My ex-wife and I are both still on the mortgage.

I completed an in-house mortgage modification with Citi and Freddie Mac in late 2010, which extended my term and lowered the rate to 3.85% which is affordable for me.

I have to remove her name from the mortgage as she has a ARM which will reset in 3 years (I'm on that one too), and the divorce decree states I have to have her off the mortgage by late 2012. Our relationship is amicable.

I just spoke with Citi this morning regarding an Assumption, which the first person I spoke with said I cannot do because I'm already on the loan. I then was steered towards a "release of liability." The paperwork was sent out to begin that process today.

I'm current, I've been the only one making the payment since March 2009, and I got the mod while current.

Am I throwing 900 bucks away on this? Is this a decision that is made by the servicer or the investor? There is no verbiage in the modification docs disallowing assumption or release of liability. The agent I spoke with read my docs while I was on the phone and confirmed this. As for the original loan documents, I will have to look for them to confirm the same.

I cannot refi, I am upside down say 50-100k with the 1st and 2nd. I'm in a resort/2nd home area, so our values will take longer to rebound. I am, however, in this for the long haul so I don't mind.

She filed the quit claim document in September 10 when the mod went through.

Any thoughts?
Hi tivoklr,

If you're paying the loan as per the loan modification agreement, then I don't think it will affect your chances of getting an assumption or release of liability.

Take care
Posted on: 07th Mar, 2011 02:36 am
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