4 People on Loan - 2 Want a Loan Modification
My sister & her husband, and me and my husband are all on the note and title for a loan. Sister and husband are the primary borrowers and occupy the home. Husband and I were simply co-borrowrs to help them get the loan approved. The primary borrowers want to apply for a mod as they are having financial difficulties. Can they apply for a mod? Would the lender have to take into account our financial info too? We don't occupy or help them pay and we wouldn't be able to anyway. Bottom line, can my sister and her husband apply for the mod?Mortgage Modification Answer:
I have checked with my loan mod company and they said yes, your sister and her husband can apply for a loan modification without you and your husband.
Since you and your husband do not live in the property and your sister and brother-in-law can document that they have not been getting any financial contribution from you and your husband to pay the monthly mortgage payments, even if you and your husband are co-signers on the loan, it is possible that they would qualify and get approved for a loan modification.
It is critical that they know the guidelines for the different programs that they can possibly qualify for because it is easy to get rejected based on income surplus or deficit that fall outside the bank's requirements. And since they will need to qualify only with their income, their application must convey that they can afford the new payments as well as meet all other requirements. The bank may look at their application closely since they needed to have co-signers to help qualify in the first place.
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All the best to you and your family!