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Blocks677 · Joined: 07 Nov 2010 Posts: 2 2.32 Dollars($)

Hi

I got Ch7 discharge a year ago. I own a house (not reaffirmed) with spouse who did not file. The house is not underwater. Payments are up to date with some lates. Spouse is on the mortgage but not on the note itself (that's just in my name) which is held by WF.

At some point we want to refi - my wife has sufficient income to qualify and her credit is good (780 or so). BUT I am concerned that although the current mortgage is discharged and no longer shows on my credit report, that any bank approached for a refi will want to see a letter from WF showing payment history even though my wife is not on the note, as we are both owners of the house?

Or is that just for FHA loans? This would be a jumbo (550K)

Thanks

Joe

smithsussane · Posted: Mon Aug 08, 2011 9:25 pm Post subject:

Hi Blocks!

Welcome to forums!

If your wife has the sufficient income to qualify for a loan and also has a good credit, then she can refinance the mortgage in her name alone. I don't think that will be a problem. I will suggest your wife to contact the local lenders and start applying for a loan.

Feel free to ask if you've further queries.

Sussane

Guest

But my name is still on the deed? Would the mortgage co. accept that with a new mortgage in my wife's name alone?

jameshogg · Posted: Tue Aug 09, 2011 10:21 pm Post subject:

Hi JoeyB,

You need to sign a quitclaim deed and transfer the property to your wife. Once you transfer the property to your wife, then she can get a mortgage solely in her name.

Thanks

Guest

Thanks and sorry to belabor this but even if I do that wouldn't they want to see the payment history even if the note was in my name previously? Reason being she was on the mortgage note.

raymond · Posted: Wed Aug 10, 2011 6:06 am Post subject:

>>Spouse is on the mortgage but not on the note itself (that's just in my name) which is held by WF.

This doesn't make sense. The mortgage and note are the same thing. Do you mean both you and your Spouse are on Title, but you're the only person on the mortgage note?

>>I am concerned that although the current mortgage is discharged and no longer shows on my credit report,

The mortgage is still on your credit report. It doesn't get removed because of a bankruptcy.

If both of you are on Title, and you're the only one on the mortgage, and you want to refinance in the future, wait one more year and then refinance the property into both your names. With FHA, you can get a mortgage 2 years after a chapter 7 has been discharged, as long as you haven't had any lates on anything during that 24 months. And you're going to need to rebuild your credit during that period of time, and get your FICO score in an acceptable range (right now that range is 620-640, but the higher the better).

Guest

The mortgage shows on my credit report as $0 owing -discharged in Ch7 - and they are not reporting payments. This is all as expected and in accordance with BK law. Right my wife is not on the note.

The mortgage itself filed at the Registry is in both my name and my spouse's.

The note detailing the payment terms is in my name only. it does not show up on my wife's credit report.

raymond · Posted: Wed Aug 10, 2011 6:18 am Post subject:

>>The mortgage itself filed at the Registry is in both my name and my spouse's.

What does this mean? Do you mean the Title has been recorded in both your names?

The bottom line is you can refinance into both your names in one year, as long as you don't have any lates and work on your FICO scores.

Blocks677 · Joined: 07 Nov 2010 Posts: 2 2.32 Dollars($)

Coming back to this a bit late, but thanks for replies so far.

Re Raymond, yes thats right, the Mortgage showing at the Registry of Deeds is in both our names as Tenants By Entirity BUT I am the only person showing on the bank's mortgage statements and on credit reporting agencies records. i.e the mortgage never has shown on my wife's credit report. I can transfer propoerty to her and she can apply in her name only. She has a 780 credit score and necessary income to qualify.

I discharged from Ch7 with no reaffirmation and have never had a late payment on the mortgage, before or after Ch7. My spouse did not file for bk, just me and my credit report just shows 'discharged in bk'.

What I want to do is to pay late for a while to try to force lenders' hands on an inhouse mod (I am paying 6.125% and want to pay less). I have a good reason as I am falling behind on tax payments and the last thing the lender or I need is a tax lien.

They told me I wouldn't qualify for a mod while I was up to date! Makes sense.

Now in Massachusetts they can't foreclose for at least 5 mths - I can cure any o/s amount within 5 mths - that's the state law. So that leaves some time for negotiation.

BUT if I fall behind for a while, if I want to refinance or finance a new property, in my wife's name I am concerned that a new lender would want to see a letter from the lender saying no lates or maybe 1 late, even though the note was never in my wife's name and has never shown up on her credit report. They can see she is on the mortgage itself from the Registry of Deeds.

Could they ask to see the payment record if my wife alone applied for the mortgage?

I guess they can ask for what they like. They can ask to see whether a mortgage she had her name on was ever late..

I am just trying to figure out whether I risk my wife not being able to get a new mortgage ..

Thanks for any suggestions

Niicss · Posted: Tue Jan 10, 2012 3:09 am Post subject:

If your wife was not a part of your bankruptcy filing and if she was not mentioned on the mortgage docs, then she can apply for a mortgage in her name. If she meets all the required criteria for the lender, then she will get the mortgage.

Posted: Tue Jan 10, 2012 8:43 am Post subject:

Well as I said, she is on the mortgage title filed at the Registry. Just not on the actual note. So the question remains, is the new bank likely to want to see an up to date payment record?

adonis · Posted: Wed Jan 11, 2012 12:41 am Post subject:

Welcome Guest,

If she is on the mortgage docs, the mortgage payments will be reported to her credit report as well. If the present mortgage is not paid off on time, then there will be a negative mark in her credit report as well. When the new lender checks her credit report, they will be able to know about the delinquent mortgage and this may lower her chances of qualifying for a mortgage.

Posted: Wed Jan 11, 2012 7:28 am Post subject:

Nope, as I said before the mortgage does NOT show up on her credit report. never did.

jameshogg · Posted: Thu Jan 12, 2012 12:14 am Post subject:

Hi Guest,

If her credit report does not show that a mortgage is there in her name, then he may not ask her to show the payment record for the mortgage that you have in your name.

Thanks

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