REFINANCE

hi guest,

welcome to forums.

i don't think the lender wants you to remove the spouse from title just because he'll be able to offer you a better rate of interest. it's primarily because he doesn't want your spouse to be on title as because she will not be on the mortgage. that is, the lender wants only the person on the mortgage to be on the title so that in case of any default he can take over the property if no other payment option works out between the lender and you.

i believe you should try for other lenders as well. you may go for a no-obligation free mortgage quote on the refinance loan from lenders associated with this community. let's hope you come across an offer worth considering.

thanks

Hi Guest!

You may or may not sign a quitclaim deed and remove your wifes name from the title. However I would like to mention that it is not correct to say that removing your wife's name from the title will ensure a better interest rate. I would suggest you to go for another lender.

I would question your lender on this as it is not a normal procedure. Leaving or removing your wife's name from title should have no bearing on the interest rate, if they insist on it I would find another lender.

People with bad credit are charged higher interest rates because they are a higher risk. Your lender is asking you to remove your bad credit spouse from title so he can rely on your credit alone. This is not unusual and should result in a lower interest rate.

a lender cannot legally suggest to you that you remove someone from the title to your home. this is an unorthodox method.

i will agree, however, that complying with that suggestion may do you some good. if your wife's credit score is low, eliminating her from consideration can quite possibly allow you to obtain a better rate.

George,

I am curious about the law to which you refer. Only thing I can think of is Equal Op but thats more a procedural question decline loan since it doesnt meet minimum FICO for that rate and counter offer. Cumbersome and I suspect LO is trying to shortcut to get the best deal for the borrower. Maybes there some other law out there I didt think of. On the other hand I dont understand the deed transfer bit; just do the mortgage in the husbands name and leave title alone.

Declining the loan is a whole different thing than telling someone to take a borrower off. furthermore, taking a name off a loan is a completely different thing than suggesting that the borrower remove his wife from the title to the home.

what self-respecting lender would take it upon himself or herself to suggest that borrowers change the ownership interests in their home? that's a ridiculous thing to suggest, whether or not it's legal.

I believe the question concerned the law the lender was violating in the suggestion. Think you're back peddling

I am going thrua break up and this person wants me to take their name off the house. I have bad credit. What do I do now? Is there any hope to get this done?
Thanks
Kat

Hi Kathy,

If you take their name off from the deed by letting them sign a quitclaim deed, you will have to refinance the loan that you have on the property. You have already mentioned that your credit is not good. In that case, the lender will not agree to do a refinance. So before you can refinance the property, you will have to improve your credit. Check out the following link to find out some of simple ways to improve credit:
http://www.mortgagefit.com/credit-rating/credit-repair.html

Once your credit improves, then you can let the other person quitclaim the property to you.

Thanks