Posted on: 23rd Feb, 2010 10:22 am
my husband and i both have our names on the title of our property but only his name is on the loan. the loan is about $75,000 upside-down however we can still make the minimum payment. based on these facts we don't qualify for to refinance at a lower rate nor do we qualify for a loan modification. we are both near retirement age but we still have a 16 year old who hopes to go to college. i have a decent income of my own and good credit. here are my questions. since i am on the title but not on the mortgage, if i apply for another mortgage on my own, by law must i divulge that my name is on the title of this home? if so could i do a quit deed first and not mention it? also can the bank come after the property i purchase in my name alone if my husband defaults on the first mortgage which doesn't have my name on it but in which i am named on the title?
nice to see that "bliss" is the second half of the name you chose. if you apply for a mortgage while still owning your home, you will be asked if you have owned a home in the past 3 years. when you sign an application, you swear to the truth of what you've stated on that application, under penalty of law.
i'd say you need to tell the truth. now, if you quit claim your interest in the property to your husband, you can still answer the question truthfully, and add an explanation about why you no longer own. and yes, they will ask, and yes, they can find out the full details anyway.
as for the chances that he defaults and the lender might seek damages from you - well, since you don't have an obligation on the loan, they won't seek you out; and since you won't be an owner under your scenario, they won't seek you out for that either. i have to suggest that you're free and clear if you do what you propose.
i'd say you need to tell the truth. now, if you quit claim your interest in the property to your husband, you can still answer the question truthfully, and add an explanation about why you no longer own. and yes, they will ask, and yes, they can find out the full details anyway.
as for the chances that he defaults and the lender might seek damages from you - well, since you don't have an obligation on the loan, they won't seek you out; and since you won't be an owner under your scenario, they won't seek you out for that either. i have to suggest that you're free and clear if you do what you propose.