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Will a loan modification release me from obligation of first and second mortgage?

Posted on: 04th Jun, 2009 08:19 pm
i'm divorced, in the divorce decree it was decided that after one year my ex-wife and i would get the house appraised, if the appraisal was for more than the amount of both mortgages, then we would put the house on the market. that year came and i realized that i didn't want my kids (4 and 7 yrs old at the time) to lose their home because of my divorce. my ex-wife was in agreement so it was decided that she would get six more months to pay off her debts and then would attempt to refinance both mortgages in her name. it's been six months, and recently she told me she was attempting to get a loan modification. i've been researching loan modifications since and don't know if this is the right thing to do to release me from my obligation for the house. i've read that refinancing is the only way this can be done, am i correct?
Yes, Rochers you are absolutely correct. In order to remove your name from the mortgage deed, your ex-wife will have to refinance it in her name. A loan modification, on the other hand, will lower the payments in case of a default. It will not help you in removing your name from the loan.
Posted on: 04th Jun, 2009 11:34 pm
refinancing or modification is the only option
Posted on: 05th Jun, 2009 08:35 am
Rochers13,

Welcoem to the forum.

Only way to remove your obligation from the loan is, she needs to refinance. The modification will nto remove your name from the loan. The modification if done, will probably reduce the amoutn you owe or reduce yoru interest rate.

Good luck and feel free to ask

Realgeni
-Good credit is easy to achieve, as long as you use it responsibly.
Posted on: 05th Jun, 2009 01:25 pm
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