Divorce and loan modification - How to take ex off the loan

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munchkin131

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Post Posted: Tue Jul 15, 2008 4:43 pm    Post subject: Divorce and loan modification - How to take ex off the loan
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I'm behind, but was approved for a loan modification. I was going to have my ex-husband sign, but noticed on the paperwork they sent that all parties on the loan have to sign unless a divorce decree is sent.

I called Wells Fargo to explain that my ex has not lived in the house or contributed to the mortgage since 1999. They told me to sign the loan mod papers & send it in with the divorce decree - which I did about 1 month ago. Our next step is to get ex to sign a quit-claim deed to remove him completely. I thought this was an approved process & once I signed it was official. But as of today they say it is still in review.

I'm sure it is in review because of the divorce decree thing - is someone familiar with this scenario? Is there a chance they will not approve it now? And if so, what happens then? The way they set up the loan modification I am skipping even more payments - if they don't approve this I will be even more behind.

Any input?

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Icon Mini Profile cliff3

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Post Posted: Tue Jul 15, 2008 5:23 pm    Post subject: divorce loan modification - what you should know
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Hello Munchkin130,

Thanks for visiting the forum.

If I understand correctly, your loan modification had originally been approved with both you and your ex still existing on the loan.

In order to remove your ex from the mortgage loan, they have to re approve you for a loan modification in your name only. That's also the reason for executing the quitclaim deed.

The quitclaim deed will not release your ex from any obligation to any mortgage loan, or other lien secured against said property. Refinancing is how this is achieved. You must refinance the property using your own income, assets and credit.

Yes, a loan modification can normally take at least 30 - 45 days. Lots of circumstances can prolong the completion of a loan modification.

The first thing you want to do is KEEP TALKING TO YOUR MORTGAGE COMPANY. Be sure you are talking to the Loss Mitigation or Workout Department. Find out WHO IS ASSIGNED TO YOUR FILE. This is the person you need to be talking to all the time. If you do not get to speak to that person, you can always ask to speak to a supervisor/manager in that department. DO NOT RELY ON THEM TO KEEP IN CONTACT WITH YOU. Keep checking at least twice a week on the status of your loan modification.

Once you are talking with the person who is assigned to your file, always ask them what you can do to get this approved. Let them know your concerns about getting farther behind. Let them know you do not want this to go into foreclosure. Always let them know how willing you are to get all this worked out soon.

I hope you have a better idea of what you are currently faced with. You may visit home-buddies.com and review a free step by step guide to mortgage issues there.

Please let us know if you have more difficulties and more questions.

Good luck.

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munchkin1302

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Post Posted: Tue Jul 15, 2008 6:42 pm    Post subject: divorce loan modification - more concerns
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I do have more concerns, but was afraid to get too wordy in my original response.

If needed my ex will sign the docs - he won't object. But I fear there's a bigger problem - and it is very complicated.

My ex & I filed for bankruptcy in 1999, Chapter 7 - then we divorced.
We had a 1st & 2nd mortgage & both were to be reaffirmed.
The 2nd mortgage (25K) was never reaffirmed by either of us
2nd does not appear on my credit report and they have not placed a lien against the house (I check 1-2 times per year).

The divorce decree mentions the 2nd mortgage, and now I'm worried the 1st may be checking into this & will find out that we never reaffirmed after the bankruptcy, let alone that we haven't paid since 2002. I'm worried that this will cause them to deny us a loan modification at all.

As for the 2nd I don't know where they stand and am afraid to ask. At first I tried to reaffirm, but they kept saying "You don't own this debt & any payments you make are voluntary". They wouldn't explain to me what it meant & wouldn't work with me to bring the loan current like the 1st mortgage co did. Then I lost my job & fell more & more behind until finally I just stopped paying sometime in 2002

Believe me I know this is stupid on my part, but times are tough financially & when you reach a point where you can barely afford the bare necessities what else are you to do? I know I'm no expert & this is purely an ignorant conclusion - but I figured the worse that could happen is the 2nd eventually puts a lien on the house & when I sell it they get their 25K.

Any thoughts? Should I be very worried now?
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Post Posted: Wed Jul 16, 2008 4:42 am    Post subject:
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Welcome back munchkin.

I feel the loan modification that you want to do is a new one. Not that one which you have included on the bankruptcy. s is right? Is your ex-husband also on the mortgage?

By the way if this is a new loan then the second loan (that you haven't reaffirmed) shouldn't create problem.

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munchkin131

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Post Posted: Wed Jul 16, 2008 6:51 am    Post subject: divorce loan modification
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Thank you so much for your help. I know I have a bad situation & I appreciated your candidness.

Hopefully these details will help:

Loan originated in 1990 with Parkway Financial.
They sold it to Washinton Mutual in 1996 or so.
Washington Mutual sold to Wells Fargo in December of last year.
2nd loan was home equity loan on this house.

Some other quirks that may be causing Wells Fargo to look more closely:

Ex is on both loans & filed bankruptcy with me, but he never showed up in court for final hearings on either case, so the bankruptcy went through in my name only & divorce went through as a default. He's an alcoholic who fell apart & could not deal the divorce or the bankruptcy.

When I call Wells Fargo I have to listen to the bankruptcy disclaimer. I assume it's because the Chapter 7 is on my credit report until 2009, but it's possible that this loan was never reaffirmed. I honestly can't remember. Hitting so very many financial setbacks over the years I've been on one repayment plan after another. They just kept doing one repayment plan after another. Also, Washington Mutual modified this loan in 2003 after I lost my job & was unemployed for 9 months. My ex signed those papers & it went through with no questions asked.

I called this a.m. & Wells Fargo told me the modification was approved, but there was a problem - she had no idea what the problem it. She said the person handling the loan does not take calls & I have to wait until they contact me. She mentioned a few minor scenarios that cause delays, like taxes went up so the escrow payment has to change.

I don't understand this process or terminoligy. She said it was approved, but apparently it's not officially approved as of yet. Sound like I could still be denied. Am I wrong? If it's approved do they just work out the snags that come along they way in the reveiw process?

I'm worried sick now about loosing my home. I have 4 kids & living here is much much cheaper than getting an apartment these days. Plus I have 50-80K equity that I would hate to loose.
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Post Posted: Thu Jul 17, 2008 5:41 am    Post subject:
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Hi munchkin.

Welcome bank.

Please don't worry so much. If the Wells Fargo told you that the modification was approved, then you should wait and see what happens. Now is your property taxes are paid and cleared. I think this may be the problem that they are referring. If not then pay it ASAP. Tax lien if the first lien and should be given utmost priority.

Feel free to ask if you have any further questions.

Best of luck,
Larry
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Post Posted: Thu Jul 17, 2008 7:22 am    Post subject:
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Hello Munchkin130

In reference to your statement " She said the person handling the loan does not take calls & I have to wait until they contact me."

YOU CAN ASK TO SPEAK TO THE SUPERVISOR. It is common that some negotiators do not take incoming calls from you. But at this point you need to be asking for a supervisor. The supervisor/manager can get the answers and details for you, even if he has to get them from the underwriting department.

Don't give up!. Please keep following up regularly with your lender. Do not rely on them to follow up with you.

Let us know if there is anything else we can still help you with.

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Post Posted: Sat Jul 19, 2008 11:19 pm    Post subject: Loan modification Help
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A loan modification is a great alternative to foreclosure. LoanMod.com (aka Mizna) helped me complete a loan mod with my current lender. Of all the companies I researched to help me avoid foreclosure, loanmod.com was the most credible and even has a feature in this month's issue of Forbes:

"http://www.forbes.com/entrepreneurs/forbes/2008/0721/058.html"

Two tips I would give other struggling homeowners looking to modify their loan is that (1) non-profits are hopeless and you get what you pay for, and (2) if a loan modification company does not have a mailing address on their website, then forget about it. There are so many scams going on out there that borrowers should be vigilant and not trust every company that claims to do loan mods. You want to make sure you’re working with real people who care. The folks at Mizna definitely care about homeowners and they did wonders for me.

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munchkin131

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Post Posted: Sun Jul 20, 2008 8:10 am    Post subject: divorce loan modification
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Just want to quicky clear up that my taxes are paid through escrow account w/Wells Fargo - so a tax lien or delinquent taxes is not the issue.
Jacqueline

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Post Posted: Sun Jul 20, 2008 4:44 pm    Post subject: Loan Modification
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Hello Munchkin130,
I assist homeowners with their loan modification through their lenders. My last four (4) homeowners have loans w/Countrywide and it's been five (5) months now and they're finally completing their modification. The homeowner does have an option to make a mortgage payment while going through this process, however, a mortgage payment or two (2) will most likely be required from the lender infinalizing the modification.
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Post Posted: Mon Jul 21, 2008 6:57 am    Post subject:
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Hello Munchkin130

If you were told that your loan modification was approved:

YOU NEED TO BE SPEAKING TO THE NEGOTIATOR WHO WAS ASSIGNED TO YOUR FILE AND WHO APPROVED THE LOAN MOD. OR YOU NEED TO BE SPEAKING TO A SUPERVISOR!

Someone should be able to be telling you exactly when your papers are being sent out to you to sign. They should be telling you if the papers are being sent regular mail, FED EX, or etc. They should have very specifice notes and details (showing in their system) about your file, including information regarding the approved loan modification.

Contact them right away and don't give up until you get those answers. If you still are not getting the answers from the negotiator or from the supervisor, let them know that you need to speak to ANOTHER supervisor, and let them know that you NEED THIS TO BE ESCALATED.
Just remember to try to be polite about all of it at the same time.

Please let us know if you still have issues and questions.

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moms

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Post Posted: Wed Aug 13, 2008 1:05 pm    Post subject: assumption loan
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judge oredered ex to be off loan and title within 3 month of divorce. House is upside down and I cant get refinanced, but Wachovia offfered a ASSUMPTION LOAN , with ex removed and son on it.
However, when we first bought home 16 years ago, we did it with a 1$ down, VA loan. Is he free to use another VA loan after Iget him removed?
thanks
Icon Mini Profile sara
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Post Posted: Thu Aug 14, 2008 4:25 am    Post subject: RE: can someone take VA loan again?
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Hi moms,

I guess your husband can apply for another VA loan provided the entitlement amount, which is $36,000, hasn't been exhausted. He can also restore previously used up entitlement amount to purchase another home with a VA loan provided the prior loan has been paid in full.

Take Care

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Robert6477

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Post Posted: Wed Oct 01, 2008 3:40 pm    Post subject: Loan Modification question
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Hello,

I have a question for Clif. I have been approved for a loan modification but do not agree to the terms of the agreement. I tried calling and finding out who was assigned as a negotiator to my account but was told that there is no one specifically handling my account and that I would have to just accept the terms or walk away from the house. I can't understand how the servicing company can make this type of decision without someone from underwriting or somewhere consider my terms for a modification?? Any help would be greatly appreciated.

Thanks,
/Robert
Annie

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Post Posted: Thu Oct 02, 2008 12:36 am    Post subject:
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Though the question was for Cliff, I would like to say that the lender has to appoint a negotiator for loan modification. You will have to tactfully speak to the agents of the company. Tell them that you need to speak to a supervisor or any other higher authority. You can even take legal if they still do not answer you.
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