Can Only One Person Sign for a Joint Mortgage Loan Modification
by Janice Russell
(Brighton, MI, livingston)
Hi! In the divorce agreement I quick claim deeded him the house. He had 120 days to refinance. They refused to refinance him, but he did sign a Loan Modification contract. It's been a year and I believe my name is still on the mortgage, but not the loan modification. Is he allowed to do this without my signature? Does this amend the original mortgage agreement. Am I still responsible for any payments he does not make?
Jr from MichiganMortgage Loan Modification Answer:
Each lender is a bit different from their requirements. It sounds like you're no longer on the title since you signed a quit claim deed as part of your divorce settlement. However, if you originally signed for the loan, then you were still on the hook for that. Getting off the title does not take you off the loan, unfortunately.
If your ex-husband got approved for a loan modification afterwards, and was allowed to sign the agreement by himself, then the lender may or may not have agreed to remove your liability for the loan.
The best way to check is to order your credit report and confirm if you still have the mortgage on your credit report today. If so, that means the lender still holds you responsible for that loan and the only way to get your name off is for your ex-husband to refinance or sell the property to payoff the loan. Go to www.annualcreditreport.com to get a free copy of your credit report from all three bureaus. You can only do this once a year.
The danger for you if you are still on the loan is that you are financially responsible for a property which you no longer own. If your ex-husband defaults or gets behind on his payments, or worse, foreclose, then your credit will be severely affected.
I recommend consulting with your legal counsel as well as a credit specialist if the above happens.
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