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Mortgage reformation

Posted on: 04th Aug, 2010 01:47 pm
My wife and I live in Michigan, a "tenant by the entirety" state. I applied for and was approved for a mortgage in 2000. My wife was not on the application at all. The mortgage has my name, a married person and only my signature. The Note has only my name and signature. The bank is suing to get her name put on the mortgage, saying it was a mutual mistake on both parties. But it wasn't. My wife was never intended to be part of the loan due to her poor credit. Any thoughts.
Hi fireballwho!

Welcome to forums!

Michigan is not a community property state. In that case, it is not mandatory for your wife to be on the property deed as well as on the mortgage docs. Moreover, you've mentioned that your wife has bad credit. In that case, she won't be able to qualify for a loan in any case. You should contact the bank and clarify the whole issue.

Feel free to ask if you've further queries.

Sussane
Posted on: 04th Aug, 2010 08:36 pm
Thank you for the welcome Sussane. The bank is ready to foreclose and if I understand the statute correctly (Act 216 of 1981, Section 557.21) they can not proceed with foreclosure until both of our names are on the mortgage. The bank doesn't want to clarify the issue, they want to misrepresent our intent when getting the mortgage.
Posted on: 05th Aug, 2010 07:19 am
Hi fireballwho,

As far as I know, as the bank holds the liens on the property, he can foreclose the property if he does not receive the dues on time.

Thanks
Posted on: 06th Aug, 2010 12:02 am
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