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FHA denial for a short sale when loan was in ex-wife's name.

My brother inlaw just was advised his loan was not approved for FHA because in the divorce decree it states he needs to make payments on the home till the home sells. He made the payments during this time and provided check stubs as well. The ex-wife sold the home as a short sale. His name was not on the home in any way at all. Now he is trying to get a FHA loan and is being told that he is denied because the home went to short sale. Since his name is not on the note and he has no say at all in how she sells the home since he isnt on the note the bank wont even discuss the loan with him how can he be denied when he followed the divorce decree that he made monthly payments till the sale of the home?
  • September 26 2012 - Columbus
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Answers (3)

I see, ok... I'm not too sure.  I'd guess that because the divorce decree still has him making payments, therefore still responsible for the property (in regards to the loan)
  • September 26 2012
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It was actually never on the loan. When they got together he had already had bought a house and sold one and they wanted to take advantage of the first time home owners credit so only got the loan under her name. So his name was never on any of the documents.
  • September 26 2012
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How was his name removed from the mortgage with his ex-wife?
  • September 26 2012
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