Posted on: 03rd Jul, 2010 09:22 pm
My ex and I bought a house when the housing market was at its peak and now the home is not worth what we paid for it. Once we split I moved out if the house and began renting. We put the house on the market to sell. I continued to pay half of the mortgage for 9 months and then it became financially too straining so we decided to let the loan default so he could apply for a loan modification to be able to pay for the house by himself. The bank modified the loan based on only his income and I had to sign a quitclaim deed in order for them to consider his request for a loan modification so he wouldn't loose the house.
It is now over a year later and he applied to assume the loan to take my name off of the loan and was denied. I am trying to buy a home and can't get one because of my name on the loan for the house we had together. So now as long as he has the house I am unable to buy a house. I have tried submitting paperwork to show that I do not make any payments toward that mortgage but still get denied for a home loan of my own. My question is how is the bank holding me accountable for the loan as it has been modified from the original agreement and I did not sign anything agreeing to those terms? It would have been better for me if the house has just been foreclosed on then at least there would be a light at the end of the tunnel for me to be able to purchase a home in about 3 years but the way it stands as long as he has the house I can't.
It is now over a year later and he applied to assume the loan to take my name off of the loan and was denied. I am trying to buy a home and can't get one because of my name on the loan for the house we had together. So now as long as he has the house I am unable to buy a house. I have tried submitting paperwork to show that I do not make any payments toward that mortgage but still get denied for a home loan of my own. My question is how is the bank holding me accountable for the loan as it has been modified from the original agreement and I did not sign anything agreeing to those terms? It would have been better for me if the house has just been foreclosed on then at least there would be a light at the end of the tunnel for me to be able to purchase a home in about 3 years but the way it stands as long as he has the house I can't.
Once the payments have been made on time for 12 months by him from an account solely in his name then they can be excluded from your debt to income ratio. However if the loan defaulted (as in 90 or 120 days late) then you have to wait at least 3 years from that date since a default is considered the same severity as a foreclosure. How late did the mortgage end up going, and when were the payments brought current?