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Loan Modification and Divorce

Posted on: 22nd Mar, 2010 04:47 pm
my wife and i are going through a divorce. we filed for bankruptcy last year and included all of the properties in the bankruptcy. all homes have foreclosed except one rental we had. she is trying to get a loan mod done and wants me to supply her my financials so she can do a loan mod. both of our names are on title and the loan. i have told her i do not want anything to with that house and i want it to foreclose. if she were to do a loan mod, is that considered a new loan, which in fact would be considered new debt, and not part of the bankruptcy filing? i keep on telling her if she wants to keep it she can, but she will have to refinance the house only under her name. she thinks by doing a mod together and getting it approved she then can take the divorce docs when it becomes final and get my name removed from title and advise the credit bureaus, and banks that i am no longer financially responsible for the loan. am i correct to assume that this totally incorrect the way she is thinking? i do not want the bank coming after me if she defaults on the new loan mod. thoughts?
Hi Guest,

The lender will not be ready to give a modification as both of you are in bankruptcy. It is true that as both of you are in the property deed and the loan, then both of you will have to sign the loan modification documents.

As far as I know, if you want to remove your name from the mortgage docs, then you will have to ask her to refinance the loan in her name.

Thanks
Posted on: 22nd Mar, 2010 09:05 pm
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