Zillow Advice: Loan Modifications - Will Home Affordable Modification plan remove ex-spouse name from loan?

Stephen, you might want to ...

Fri, 06 Mar 2009 03:51:00 GMT

Stephen, you might want to check your sources on that advice.

An Assumption of a loan deals with a buyer of a property assuming an existing mortgage of the seller.

There was no sale.

Since the ex-spouse only signed a quit-claim deed, there was no sale. The quit-claim deed simply conveyed the Grantor's rights or interest in the property (the Grantor being the ex-spouse).

She no longer has an interest in the property.

The current spouse is still on title, and was on title and the original note at the time the current mortgage was created.

Quit-claim deeds are signed all the time.

You are asking for an assumption ...

Fri, 06 Mar 2009 03:34:00 GMT

You are asking for an assumption of the loan by you from you and your spouse.

Fannie Mae loans are not assumeable. Modification means that you don't qualify for the terms solely under your name if the loan were to become assumeable.

If your loan is Ginnie Mae it may be assumeable...

Paul might be right, but ...

Fri, 06 Mar 2009 03:17:00 GMT

Paul might be right, but I would be prepared to submit a copy of your divorce decree, and the quit-claim deed your ex-spouse signed, as well as a well-worded hardship letter when you submit your financial documentation for the loan modification.

The actual modification document basically amends the terms of your existing note, and is recorded in public records.

They might be able to take her off, since she will not involved in the actual modification process, as they will be considering your income soley to work out a new payment plan, based on the modification guidelines recently released.

Either way, it definitely sounds like you would be eligible for a modification, so long as you meet the rest of the eligibility requirements.

Good luck!

www.financialstability.gov

Mih - The answer is likely NO ...

Thu, 05 Mar 2009 17:48:00 GMT

Mih - The answer is likely NO 'without a court order'