Posted on: 17th Oct, 2009 07:55 am
My husband bought a house before we were married two years ago. He is the only one on the mortgage and the title. The house was too much and he has been behind on the payments since he bought this home. He was recently incarcerated and I want to modify the loan with my income. The bank said it could be done. I know that if he quitclaims the property entirely to me the bank can immediately foreclose due to a clause within the agreement. I want to know the best option for me. Should I be added to the title to modify? How does that affect me if the bank forecloses? Will power of attorney give me the option to modify his loan?
one option is to refinance the loan in your name and ask your husband to do a quit claim deed at the same time.
if the bank is able to qulify you then check the process with them
you can also check with the bank and see if they add your name to the existign loan and do a loan modification
if the bank is able to qulify you then check the process with them
you can also check with the bank and see if they add your name to the existign loan and do a loan modification
Welcome priceless,
If the property is quitclaimed to you and if you cannot refinance the loan, then your husband would still be considered as liable for the mortgage. In such a situation, if the lender forecloses the property, then it's your husband's credit that would be affected. I don't think the power of attorney will give you the right to modify the loan.
In my opinion, you should speak to your lender about your situation and negotiate with him for a refinance. Once the lender gets to know your situation, he would let you know whether or not he would foreclose the property in case it is transferred to you.
If the property is quitclaimed to you and if you cannot refinance the loan, then your husband would still be considered as liable for the mortgage. In such a situation, if the lender forecloses the property, then it's your husband's credit that would be affected. I don't think the power of attorney will give you the right to modify the loan.
In my opinion, you should speak to your lender about your situation and negotiate with him for a refinance. Once the lender gets to know your situation, he would let you know whether or not he would foreclose the property in case it is transferred to you.