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Divorce and loan modification - How to take ex off the loan

Posted on: 15th Jul, 2008 04:43 pm
I'm behind, but was approved for a loan modification. I was going to have my ex-husband sign, but noticed on the paperwork they sent that all parties on the loan have to sign unless a divorce decree is sent.

I called Wells Fargo to explain that my ex has not lived in the house or contributed to the mortgage since 1999. They told me to sign the loan mod papers & send it in with the divorce decree - which I did about 1 month ago. Our next step is to get ex to sign a quit-claim deed to remove him completely. I thought this was an approved process & once I signed it was official. But as of today they say it is still in review.

I'm sure it is in review because of the divorce decree thing - is someone familiar with this scenario? Is there a chance they will not approve it now? And if so, what happens then? The way they set up the loan modification I am skipping even more payments - if they don't approve this I will be even more behind.

Any input?
Hello all... I have a story along the same lines if anyone has any suggestions:
My soon to be Ex-husband and I are in the middle of a divorce where he has already filed bankruptcy. The bankruptcy is still pending in litigation. We have been separated since September of 2008 and he was unable to pay the house payment and so I took over the payments for the house and have been living here since. With that being said the house is supposedly in the bankruptcy and he sent me paperwork from veteran affairs about a release of liability of the loan. According to his lawyer if i sign this paperwork I am totally released from responsibility of paying for the house. However I have been in contact w/the mortgage company and they say because the bankruptcy is still in litigation they would still hold me responsible. I am confused on where I need to go from here and what steps I need to take to get my name off the loan.
Posted on: 18th Jun, 2009 02:11 pm
Going through divorce, I am keeping the house, but got behind. Now, that finances are straightened out, I'm trying to modify. (this is what BofA offered as a solution). Forms are to be signed by myself and my spouse. His lawyer advised him not to sign any modification....is a quit claim good enough for the mortgage company? or am I up the creek?
Posted on: 21st Sep, 2009 02:51 pm
hi indiana,

is your husband on the loan? in case he is on the loan, you will need his signature to modify the loan. in that case, a quitclaim deed will not help. a quitclaim deed can only transfer the property ownership to you. it has nothing to do with the liability of the mortgage. on the other hand, if his name does not appear on the mortgage, it is not necessary for him to sign the modification documents.

hi manders,

how did you take over the mortgage payments? did you refinance the loan in your name or did you assume the mortgage payments? i don't think signing the release of liability document will help you get rid of the mortgage. it cannot be that easy. however, what i fail to understand why your ex included the mortgage in bankruptcy, when he's not responsible for the loan? if you have officially taken over the payment through refinance or simple assumption, he's not responsible for the loan any more. in that case, i don't understand why he included it in bankruptcy and why he wants you to sign the release of liability document. my suggestion would be, consult a lawyer before signing any such documents.

thanks,

jerry
Posted on: 22nd Sep, 2009 04:44 am
I just got divorce as part of the divorce agreement Im keeping the house, the deed is under my name. The mortgage is still under both names. I apply a loan modification but the bank is requesting my ex-husbands documets. He refuse to send them. Can I do a modification without his paper?
Posted on: 07th Dec, 2009 06:08 pm
Hi,

Your ex-husband is on the loan and he is responsible for it. The lender will require him to provide certain documents and sign on a few, in order to modify the loan. If the mortgage had been in your name, your ex-husband would not have been involved in the loan modification process. But since you have been divorced and the house has been given to you, you can talk to the lender and provide him with a copy of the divorce agreement. They may consider your case and may exclude your ex-husband from the modification process.
Posted on: 09th Dec, 2009 02:54 am
My ex-spouse recieved 3 4-plex rental properties and I was given a non-liability clause in our divorce decree. It is now 4 years later, and he says that the bank wants me to sign with him for loan modification. He should have refinanced them 4 years ago, but now they are underwater with dropped value. I refinanced the home that I live in and took his name off as agreed. I so not want to sign anything, but I do not want my credit ruined if he does not keep up the payments. Will banks make an exception and allow hime to modify without my signature since I have been out of the picture for a few years and the properties are his only?
Posted on: 16th Dec, 2009 10:35 pm
Hi Yikes,

If the divorce decree states that he had to refinance the mortgage to take your name off the loan, he should have done that. Since he has not done it so far, he is in contempt of court order and you can sue him. Your credit has already taken a hit if he had missed payments on the mortgage. You should not sign on any modification paper as you are not supposed to be on the loan as per the divorce decree. But I think you ought to talk to the lender, provide them with a copy of the divorce decree and ask them to remove your name from the mortgage. If your name remains on the loan and your ex-spouse defaults, your credit will be affected.
Posted on: 18th Dec, 2009 05:55 am
I am presently going through a divorce , I applied for a loan modification from my mortgage company through a non-profit organization whom have helped me very much. I did recieve the loan mod. but they now want my soon to be ex-hauband to sign the loan mod. He is refusing to do so and the mortgage company explained to me that he has to sign it. Can I get a cour order for him to either sign it or ask that the mortgage company let me sign it on my own, Since I have been living in the home and paying the mortgage for the pass three years on my own. What can I do?
Posted on: 11th Feb, 2010 01:34 pm
Hi Celeste,

If your ex-husband's name is mentioned in the property deed, then he will have to sign the loan modification documents. As far as court order is concerned, you'll have to speak to an attorney in this regard. He will be able to let you know whether or not you would get such an order from the court.

Take care.
Posted on: 12th Feb, 2010 12:39 am
My ex-spouse and I had a loan with Wells Fargo. Wells fargo allow my ex to modify the loan with out a quit claim or my signature on the modifiction papers. Is this even legal? They said they did it becasue she had the divorce decree. We reside in California.
Posted on: 18th Aug, 2010 07:07 pm
hi dsutton!

welcome to forums!

though your ex has a divorce decree from the court, the lender should have asked your ex-spouse to get a quit claim deed signed from you and then modified the loan. normally, the lenders ask for a signed quit claim deed from the other spouse before modifying the loan.

feel free to ask if you've further queries.

sussane
Posted on: 19th Aug, 2010 02:16 am
my name is on the mortgage loan but my ex-wife is not, and she is asking if she could do a loan modification only on her name and I dont want the house. Can my name be removed from the loan docs and her name added r
Posted on: 23rd Aug, 2010 06:51 pm
Hi juan,

As the mortgage is not in her name, she won't be able to modify the loan on her own. She will have to refinance the mortgage in her name in order to add her name to the loan. If the property does not have equity or if you're delinquent on your mortgage payments, then she won't be able to refinance the loan.

Thanks,

Jerry
Posted on: 24th Aug, 2010 02:26 am
I was divorced, and my ex-husband kept our home. Our divorce decree stated my name was to be removed from the loan mortgage. We did a quit claim deed to remove my name from the title. My ex has been paying the mortgage but our mortg. lender has denied the request for mortg. modification because they say his credit isn't good enough alone for the loan. I was able to purchase another home but I'm afraid if he isn't able to make his payments that I will be liable for the home. What options do I have?
Posted on: 31st Aug, 2010 09:39 am
Hi Guest,

You won't be liable for the home but if your name remains on the mortgage, then you would be liable for paying it if your ex-husband is unable to make the payments on time. Moreover, if the property is foreclosed by the lender, then it will have a negative affect on your credit report.

You should contact your ex-husband and ask him to sell off the property and pay off the mortgage with the help of the sale proceeds.

Thanks,

Jerry
Posted on: 01st Sep, 2010 02:48 am
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