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Quit Claim procedure, for Loan MOdification, would it help to get approved?

Posted on: 02nd Apr, 2010 01:37 pm
i would like to get more information on quit claim deed. my husband and i are equal joint tenants on a house with our son. our son lives in the house as main home. he had plans on renting out part of the house to help him with the mortgage with employment the way it is. he has lost his renters and making it difficult to make his payments. we of course are on loan with him so have been helping him out. we were just told he may be able to modifiy his loan if underwriters do not use our income. we would need to file a quit claim, is that a good idea. what does it intail?
Welcome jsain,

If you sign a quit claim deed, it will help you in removing your name from the property deed. However, you would still remain on the mortgage. If your son modifies the loan, he would require your signatures on the loan modification docs. In that case, I guess your income would be considered.
Posted on: 05th Apr, 2010 02:09 am
my son signed a quit claim deed on the home he owned with his ex-spouse. she told him that she was going to refinance the home, but he recently ran his credit report and found out that the loan still shows up on his credit report and is now reported by wells fargo as a 'loan modification'. he was never contacted to sign anything and is quite shocked that the mortgage remains his obligation according to his credit report..was this legal?
Posted on: 28th Dec, 2010 07:58 am
Hi murphy,

If your son's name was on the mortgage docs, then your son's ex-wife will not be able to modify the loan without his signatures. I don't think it will be considered as legal.

Thanks
Posted on: 28th Dec, 2010 08:18 pm
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