Posted on: 26th Mar, 2004 05:15 am
A court action cannot change the contracts between individuals unless they have committed frauds or taken any illegal steps. A divorce is neither a fraud nor an illegal act, hence the statements in the contract remain intact. So, whatever are the terms and conditions in the divorce decree, both the spouses signing the loan documents remain liable for the mortgage. Moreover, changes to the contract require the presence of all parties including the lender. But the lender is not consulted during a divorce, so you will have to follow the original statement in the mortgage note.
Thus, divorce will not change any joint obligation involving you and your spouse. Therefore, you will be liable to pay off the mortgage if you have your name stated on the mortgage note.
However, if you indeed wish to take your name off the mortgage, you can convey your property to your spouse. Your spouse will alone have the responsibility of paying off the loan. He may then refinance and get a mortgage on his name only. Or else, both of you can sell off the property and repay the loan with the sale proceeds. But make sure that you sell the property prior to getting the divorce.
Thus, divorce will not change any joint obligation involving you and your spouse. Therefore, you will be liable to pay off the mortgage if you have your name stated on the mortgage note.
However, if you indeed wish to take your name off the mortgage, you can convey your property to your spouse. Your spouse will alone have the responsibility of paying off the loan. He may then refinance and get a mortgage on his name only. Or else, both of you can sell off the property and repay the loan with the sale proceeds. But make sure that you sell the property prior to getting the divorce.
what happens if property is forclosed?
Hi Jerry!
Welcome to Forums!
Foreclosure wipes off all subordinate liens. In case the subordinate lien holders want to recover their interest, they will have to bid for the property at the foreclosure sale. They will have a chance to redeem the property by paying the lender the required amount once the sale is over.
The borrowers will have an unfavorable credit rating on their credit report for about 7 years from the foreclosure sale. Thus, they may not be able to qualify for home loans within a this span of time and even if lenders are willing to sign a deal with such borrowers, they will charge high interest rates of interest.
You can also check the following link for detailed information:
http://www.mortgagefit.com/foreclosure.html
Feel free to ask if you have further queries.
Sussane
Welcome to Forums!
Foreclosure wipes off all subordinate liens. In case the subordinate lien holders want to recover their interest, they will have to bid for the property at the foreclosure sale. They will have a chance to redeem the property by paying the lender the required amount once the sale is over.
The borrowers will have an unfavorable credit rating on their credit report for about 7 years from the foreclosure sale. Thus, they may not be able to qualify for home loans within a this span of time and even if lenders are willing to sign a deal with such borrowers, they will charge high interest rates of interest.
You can also check the following link for detailed information:
http://www.mortgagefit.com/foreclosure.html
Feel free to ask if you have further queries.
Sussane
I read here that a Quitclaim is commonly used to take a house in both spouses names and convey the property to the one spouse keeping the house in a divorce. Yet I read that both spouses are locked in to the liablity of the mortgage loan even if a quitclaim is executed. Why would anyone do a quitclaim giving up rights if they will still be liable for the loan?
Welcome Unwanted Divorce,
A question similar to yours have been answered in the given link:
http://www.mortgagefit.com/quitclaim/givingrights-loan.html
Check out the link and I hope it will help you.
A question similar to yours have been answered in the given link:
http://www.mortgagefit.com/quitclaim/givingrights-loan.html
Check out the link and I hope it will help you.
What if the couple was divorced and one party had moved out and has been paying rent elsewhere for the past 3 years and the party that stayed in the home defaulted and let the home foreclose. The party that moved out nor their attorney was ever notified of the pending foreclosure The party that moved out had the means to pay the mortgage etc. and makes good money over 115k/yr no credit card debt only a car payment. Would a lending company consider granting a loan to the the party that was renting elsewhere?
A query similar to yours has been answered in the given link:
http://www.mortgagefit.com/credit/greatincome-lowscore.html#83976
Please take a look at it. I hope it'll help you.
http://www.mortgagefit.com/credit/greatincome-lowscore.html#83976
Please take a look at it. I hope it'll help you.
Greetings,
If two parties are on a home loan, can one party get a modification to the loan without the approval of the other party?
V/R,
Ms. Lewis
If two parties are on a home loan, can one party get a modification to the loan without the approval of the other party?
V/R,
Ms. Lewis
Hi Josephine,
If both the parties are mentioned on the mortgage, then both will have to agree for a loan modification. Or else, the modification won't get accepted.
Take care.
If both the parties are mentioned on the mortgage, then both will have to agree for a loan modification. Or else, the modification won't get accepted.
Take care.
Sara
According to wells fargo, they will grant my ex wife a modification without my approval because she was awarded the house in the divorce.
They also refuse to remove my name from the mortgage. This seem extremely unfair to me. what can I do. Is it within their rights to disallow my input for a modification?
According to wells fargo, they will grant my ex wife a modification without my approval because she was awarded the house in the divorce.
They also refuse to remove my name from the mortgage. This seem extremely unfair to me. what can I do. Is it within their rights to disallow my input for a modification?
Hi Will,
A loan modification won't remove your name from the mortgage. Your name can be removed from the mortgage docs only if your wife refinances the mortgage in her name. It will be completely the lender's discretion whether or not they will give a loan modification to your wife. As they have agreed to the modification, your wife will be able to get it.
Thanks
A loan modification won't remove your name from the mortgage. Your name can be removed from the mortgage docs only if your wife refinances the mortgage in her name. It will be completely the lender's discretion whether or not they will give a loan modification to your wife. As they have agreed to the modification, your wife will be able to get it.
Thanks