Posted on: 29th Apr, 2009 10:24 am
I have a very selfish father in law who is screwing up my wife's credit. He talked into my wife to cosign his primary residence when she was young and naive. My wife is not living with him and her dad has been making the mortgage payment this whole time.
He is not able to pay it anymore and he default on mortgage payments. He tries to make the bank to do the principal reduction on his loan. I wonder whether he would qualify for that since it is a cosigned loan and the bank will look into my wife's financial background as well? Is that correct? Is he able to do the loan modification without getting my wife involved?
If he is able to convince the bank to reduce his principal, is he able to sell the house and claim a profit? Apparently, this is what he is trying to do and he doesn't care how he hurts his daughter's credit. We are not able to refinance our own home now even we have good credit and good income and we have our earnest money forfeited for the high rise condo we intend to buy.
He even wants my wife to get out of the title and he didn't tell my wife why. I bet he does that just in case we decide to file the partition lawsuit against him to make him sell the house. I told my wife not to sign anything since removing her from title will not relieve her from the primary mortgage anyway. I told her this is our last defense if the bank make her to pay for his mortgage and we will file the partittion lawsuit to make him sell the place to cover his own debt.
He is betting on it that he could get a principal reduction and sell the house and make a profit out of it.
He is not able to pay it anymore and he default on mortgage payments. He tries to make the bank to do the principal reduction on his loan. I wonder whether he would qualify for that since it is a cosigned loan and the bank will look into my wife's financial background as well? Is that correct? Is he able to do the loan modification without getting my wife involved?
If he is able to convince the bank to reduce his principal, is he able to sell the house and claim a profit? Apparently, this is what he is trying to do and he doesn't care how he hurts his daughter's credit. We are not able to refinance our own home now even we have good credit and good income and we have our earnest money forfeited for the high rise condo we intend to buy.
He even wants my wife to get out of the title and he didn't tell my wife why. I bet he does that just in case we decide to file the partition lawsuit against him to make him sell the house. I told my wife not to sign anything since removing her from title will not relieve her from the primary mortgage anyway. I told her this is our last defense if the bank make her to pay for his mortgage and we will file the partittion lawsuit to make him sell the place to cover his own debt.
He is betting on it that he could get a principal reduction and sell the house and make a profit out of it.
i'm not sure if you're looking for insight on this matter or affirmation of what you feel is going on. i tend to think it's the latter.
it's clear that removing her from ownership wouldn't remove her from the obligation on the mortgage - that is true.
if he's unable to make payments on the loan, it would seem to me to make sense to have the lender do a principal reduction if they're willing. but i wouldn't want to try to guess what his ulterior motive might be, if one exists.
it's clear that removing her from ownership wouldn't remove her from the obligation on the mortgage - that is true.
if he's unable to make payments on the loan, it would seem to me to make sense to have the lender do a principal reduction if they're willing. but i wouldn't want to try to guess what his ulterior motive might be, if one exists.
Is he able to do the principal reduction by himself since it is a cosigned loan? Does the bank need to factor in my wife's income as well?
Thanks for your reply!
Thanks for your reply!
inasmuch as your wife is a party to the loan, i'd imagine they would wish to know her income, yes. you might have to build a case for not including her, based, of course, on her having no real ties to the property.
Thanks for your reply!
Can you tell me how I can build a case for not including her income? She is not tied to that property. The only reason that I tell my wife to keep her name on title just in case we need to take her dad to court and request him to sell the house.
Is her dad able to refinance this loan and get my wife name out if his debt to income ratio is very high or should I say his debt is over his income.
I am also trying to look into the loan docs tonight and see if this is an assumble loan. Can you give me some insight what to look for? Does it actually state "assumable" on the loan paper?
If it is an assumble loan. What step should I take next? I would like to help my wife to get out of this before he screws up her credit. We are trying to refinance our home.
Thanks for your expertise!
Can you tell me how I can build a case for not including her income? She is not tied to that property. The only reason that I tell my wife to keep her name on title just in case we need to take her dad to court and request him to sell the house.
Is her dad able to refinance this loan and get my wife name out if his debt to income ratio is very high or should I say his debt is over his income.
I am also trying to look into the loan docs tonight and see if this is an assumble loan. Can you give me some insight what to look for? Does it actually state "assumable" on the loan paper?
If it is an assumble loan. What step should I take next? I would like to help my wife to get out of this before he screws up her credit. We are trying to refinance our home.
Thanks for your expertise!
Hi billy
I would suggest you to contact a lawyer in order to build a case so that her income is not included by the lender.
"Is her dad able to refinance this loan and get my wife name out if his debt to income ratio is very high or should I say his debt is over his income. " I did not understand what you wanted to say by this. If you father in law refinances the mortgage in his name, your wife will not be responsible for the debts anymore.
Whether the loan is assumable or not will be mentioned in your loan documents. If you find that the loan is assumable, you can ask your father in law to assume the loan. However, he will be able to assume the loan only if he is current on his mortgage payments.
Thanks.
I would suggest you to contact a lawyer in order to build a case so that her income is not included by the lender.
"Is her dad able to refinance this loan and get my wife name out if his debt to income ratio is very high or should I say his debt is over his income. " I did not understand what you wanted to say by this. If you father in law refinances the mortgage in his name, your wife will not be responsible for the debts anymore.
Whether the loan is assumable or not will be mentioned in your loan documents. If you find that the loan is assumable, you can ask your father in law to assume the loan. However, he will be able to assume the loan only if he is current on his mortgage payments.
Thanks.
assumptions are subject to approval by the lender, and that doesn't necessarily remove a borrower from liability. refinancing is the best bet. if his debt exceeds his income, guess what! no chance of refinancing.
building a case means gathering information, writing a very strong explanatory letter which would describe the reasons she should not be held accountable.
building a case means gathering information, writing a very strong explanatory letter which would describe the reasons she should not be held accountable.
Hi George and Niiccss. Thanks for the valuable info. I guess my wife and I are out of luck and have to stuck with my in laws mortgage. As George said, there is no chance for him to refinance plus he is delinquent on the mortgage payment right now.
I guess I will have to wave good bye to my earnest money that we place for a high rise condo in Seattle. We were pre-qualified for a loan last year during the pre-sale but now her credit is ruined. The pre-sale contracts states that our earnest money will be forfeited if we are not able to get a loan at closing. =(
I guess I will have to wave good bye to my earnest money that we place for a high rise condo in Seattle. We were pre-qualified for a loan last year during the pre-sale but now her credit is ruined. The pre-sale contracts states that our earnest money will be forfeited if we are not able to get a loan at closing. =(
I am looking to buy an apartment bldg for $1,075,000.00 downis $275,00.00 pre tax cash is $20,857.00 principal reduction is $9,109.00 . how is this caculated. or give a generic answer.
Not really sure what your question is.
thom mosely
Welcoem to the forum
Can you please clarify what youa re lookign for
I think this what I understnd as of now
Apartment Price - $1,075,000.00
Doanw payment - $275,00.00 ( >20%)
PreTax Money - $20,857.00 ( Probably takling it from 401k or you ar eyet to pay taxes on it)
principal reduction is $9,109.00 - Does not make sense
Good luck and feel free to ask
Welcoem to the forum
Can you please clarify what youa re lookign for
I think this what I understnd as of now
Apartment Price - $1,075,000.00
Doanw payment - $275,00.00 ( >20%)
PreTax Money - $20,857.00 ( Probably takling it from 401k or you ar eyet to pay taxes on it)
principal reduction is $9,109.00 - Does not make sense
Good luck and feel free to ask