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Possible to buy a home on short sale if name is in deed?

My "landlord" bought a home as an investment property. When she bought it, we were looking at it at the same time and she offered us to live in the home and buy it from her when our credit got better.  After 2 years of living in the home, she said that she was in financial trouble with her other home and that she was doing a loan mod. She talked us into letting her do a loan mod on both homes..I mean whats the worse that could happen? Longer story short.she gave this company the money for the payments and come to find out they didnt make the payments. We didnt find out until someone showed up to put a notice on the door.  After 2 years of fighting..the house is in forclosure. The bank agreed to sell it to us on a short sale. However, we now come to discover that my husband is listed on the Note and the Deed!  When she closed on the house, we were told by her realtor that my husband had to sign some paperwork and be listed as a tenant since SHE would not be living here. We were only suppose to be listed as a tenant. Our credit has not been impacted at all by the forclosure because we are not on the mortgage. It made it all the way to the underwriting and it came back as a big fat NO. Because my husband is on the deed.   We thought NO WAY and went down to the county and pulled a copy and sure enough. However, he is not printed on any of the paperwork. It is like someone hand wrote in all his information,. The "landlords" name is printed..then next to it is someones handwriting with all my husbands info. He initialed some paperwork but it was just suppose to be for the tenancy. So, the realtor lied..or just didnt know what they were doing.  Can this be fixed or are we dead in the water. This has been our home for 7 years and we can afford it..want to make the payments..but we are being told that there is nothing that can be done. There has to be something.
  • August 31 2011 - US
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Answers (2)

It is attorney time!

Several things in your story just make absolutely NO sense.

You say he just signed a few things as tenant when the landlord closed.  There is absolutely nothing at the closing table for a future tenant to sign.  Prior to closing you might have been asked to sign a lease.

You say your husband is not on the mortgage.  If his signature is on the Note he is obligated to the debt of the loan, BUT he can't just be on the Note if he didn't apply for a loan. Have you checked his credit report to see if a mortgage loan is listed there?

 I don't know where you live.  in some states The Deed of Trust is called a Mortgage.  You say his name is on the Deed, is his signature?  ...is it notarized?  Who notarized it?

This story is very strange, has many holes, makes no sense and is just not logical.
  • August 31 2011
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I think your best bet is to contact a real estate attorney.  If you were deceived or coerced into signing any paperwork then a good lawyer should be able to help you.  In my area you can get a consultation for $150-200.  Good luck!
  • September 01 2011
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