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Loan Modification Approved - where to go from here?

Hi everyone.

I recently moved into the permanent phase of my loan modification. My hardship was due to a divorce in which my ex husband completely stopped paying all and any mortgage payments. He was court ordered to sign a quit-claim deed (which he did) and all ownership and interest in the home was awarded to me exclusively, free and clear of him. The property is located in New Hampshire.

My questions are these, I never realized that the loan modification would not remove his name (and while I don't have any written evidence, I was told contrary by one of hte customer service reps that I spoke to on my long and tedious journey) how does the loan modification and staying current with my payments affect him? Does he get any benefit from my hard work and making payments all on my own? I went through the loan modification completely on my own and everything was in my name and based on my income alone. The bank (Everhome Mortgage, if that helps) was supplied these documents.

I also need to know if his name still technically being "on the account" will impede on my ability to sell the home at a later date. We do not have a civil and amicable relationship and I dread the thought of asking him to sign anything.

Any help that could be provided would be greatly appreciated. Also, refinancing to remove him completely isn't really feasible right now due to market values and the decreased value of my home.
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October 01 2012 - US
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does the divorce decree remove him from the note and title or just the title?

the mortgage remains in the names of the parties that signed for the loan at the closing till either paid in full, sold for amount owed, sold for less than owed as a short sale or foreclosed if payments are not brought up to date.

Are you anticipating to occupy your house till its value rises to what you owe and then sell the house at break even point or hoping to have a gain? 

Could he benefit then...check with an attorney but I think he can...Don't worry though...I don't know if values will return to former highs anytime soon as it could take 23 years to return to the former value and amount owed depending how far upside down you are currently.
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October 01 2012
Profile picture for pff2012
The exact wording in the notice of decision is "The Petitioner is awarded all right, title, and interest in the real estate located at <insert address here> freee of any right, title, or interest of the respondent. The respondent shall execute a quitclaim deed forwith"

I don't understand who he could benefit in the future if by some miraculous intervention if I was able to make a gain on the house. Wasn't he ordered to give up all interests in the home? How could be stake a claim to any gains that are received at a later date? He's certainly not liable for any liabilities against the house, those were all assumed by me.

I would like to stay in the house until I can at minimum break even. I don't want to sell the house while I'm in any upside down scenario. I don't have the cash backing to make up the difference.
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October 01 2012
Profile picture for wetdawgs
You wrote "He's certainly not liable for any liabilities against the house, those were all assumed by me.:   As long as his name is on the note, he is indeed liable in the eyes of the lender.   While you went through the modification on your merits, you do need to talk to your lender what it takes to get his name off the note. 

A common mistake in divorce proceedings is assuming that a quit claim deed removes the party from the mortgage obligations.  It doesn't.   That has to be done separately (and isn't done by a court order but by the assuming party refinancing in their own name).

I've never heard of courts showing that the person keeping the property have to prove that they've removed the other party from the mortgage, so hopefully the attorneys are making that clear.





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October 01 2012
Profile picture for pff2012

I was to have 90 days to obtain the loan modification, it took longer than that because the bank had significant issues with keeping track of and reviewing the financial documents I was submitting. I started the process in mid November and didn't get approved for my trial modification period until the end of March. Once I obtained the modification I was supposed to have 6 months to refinance to remove my ex from the home (which would remove his liability as well). I didn't refinance because I was under the impression that the modification was going to remove his name from the liability. The homeowners solution group team lead that I was working directly with said in an email (which I have copies of):

"Also, I am ordering a title on your property to make sure that are no liens or judgements attached to the property, if the modification is approved we will need to record the modification to remove <ex's name here> from the liability"

Apparently that was false in every single possible way.

I had been emailing my ex along the way to let him know what was going on throughout the process (never got a response back). Does he have legal legs to stand on to force me to sell the house? I just want to own the house, I am not looking for any money from him. I have a mortgage payment that I am able to afford and a steady job that I have had for over 8 years now. I just don't know what happens now. I got the modification, it just took longer that I believed that it would and wasn't didn't include all of the terms I was informed that it would.

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October 01 2012
I highly suggest you get his name off of the loan and deed!

This is what happened to one client who didnt get ex husbands name of loan. 

She paid loan for 30 years and it is now paid off, but, since husband bought home with her he is entitled to half of the equity!!!  

She brought a partition action against him and he gets half of the home. 

this is not legal advice and may not happen to you I dont know your scenario but I would definately do what you need to do so the loan is only in your name..... 
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October 02 2012
Profile picture for pff2012
That's what I thought I was doing and the bank gave me misguided and false information.

He has signed a quitclaim deed and has been court ordered to give up his right and interests in the home so he would be hard pressed to try to fight me for any equity or gain that I make on the house at a later date.

My concerns lie in the fact that the modification did not take his name off of the home as I was told it would and now his name is still technically on the mortgage (and assuming the liability). My concern is that he can take me to court and force me to sell the house (in the case that I can't refinance) even though I have brought the loan into a current status because his name is still technically on the mortgage.
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October 03 2012
 
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