Paul M. Any advice you can provide on this question? - Loan Modification Forum

bccorona · 08-06-2009, 04:35 PM

Here is my quick story. Bought my house in late 04 for 660,000 by doing an 80/15/5 loan. The 1st was an interest only for 528,000.00 and the 2nd is fully amortized at 8%.

Fast forward to late May 2009/ House is now worth 475K and I have never been late with payments. Individual I bought the house with is no longer living there but still remains on the loan (but was quick claimed off title) back in 06. My hardship has been that since the other person I bought the house with is no longer living at the house, this resulted in a loss of income and the payments have fallen on me.

Started the mod process with Wells. I just spoke with them yesterday and they approved me for forbearance for 3 months which reduced my payments on the 1st by 600.00. I'm assuming they will make it a permanent payment but I have to go through this trial period. I'm still waiting for the docs so I will update everyone once I receive them.

Questions:

1) Since the co-borrower is no longer on title, will the banks usually require the co-bowwer to sign off on anything even if they are no longer on title?

>2) If the co-borrower refuses to sign anything, do I have any other recourse?

Paul Molinaro Esq. · 08-07-2009, 11:59 AM

NO LEGAL ADVICE HERE - JUST GENERAL INFORMATION - ANY SIMILARITIES TO ANYONE'S ACTUAL SITUATION IS JUST ONE HECK OF A COINCIDENCE.

In general banks are very reluctant to remove someone from the NOTE. As you can imagine having two people liable for a debt instead of one make repayment more likely. The lender does not gain anything by letting someone off the hook for the note.

The lender will decide how to handle co-borrowers who are no longer in the property - a situation that is common in divorce - and one that often does not have a great outcome - as can be imagined getting two soon-to-be exes to agree and provide financials to the lender is not an easy task.

- Paul

bccorona · 08-07-2009, 12:18 PM

Thank you Paul for your response.

So far, the bank has not required anything from my ex and they have approved me for the mod. Hopefully that means I will not require her signature for anything.

08-06-2009, 04:35 PM	#1 (permalink)
bccorona Member Join Date: Jul 2009 Posts: 16 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Paul M. Any advice you can provide on this question? Here is my quick story. Bought my house in late 04 for 660,000 by doing an 80/15/5 loan. The 1st was an interest only for 528,000.00 and the 2nd is fully amortized at 8%. Fast forward to late May 2009/ House is now worth 475K and I have never been late with payments. Individual I bought the house with is no longer living there but still remains on the loan (but was quick claimed off title) back in 06. My hardship has been that since the other person I bought the house with is no longer living at the house, this resulted in a loss of income and the payments have fallen on me. Started the mod process with Wells. I just spoke with them yesterday and they approved me for forbearance for 3 months which reduced my payments on the 1st by 600.00. I'm assuming they will make it a permanent payment but I have to go through this trial period. I'm still waiting for the docs so I will update everyone once I receive them. Questions: 1) Since the co-borrower is no longer on title, will the banks usually require the co-bowwer to sign off on anything even if they are no longer on title? >2) If the co-borrower refuses to sign anything, do I have any other recourse?

08-07-2009, 11:59 AM	#2 (permalink)
Paul Molinaro Esq. Attorney Join Date: Mar 2009 Location: 980 Montecito Drive, Suite 206, Corona, CA 92879 Posts: 133 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Paul M. Any advice you can provide on this question? NO LEGAL ADVICE HERE - JUST GENERAL INFORMATION - ANY SIMILARITIES TO ANYONE'S ACTUAL SITUATION IS JUST ONE HECK OF A COINCIDENCE. In general banks are very reluctant to remove someone from the NOTE. As you can imagine having two people liable for a debt instead of one make repayment more likely. The lender does not gain anything by letting someone off the hook for the note. The lender will decide how to handle co-borrowers who are no longer in the property - a situation that is common in divorce - and one that often does not have a great outcome - as can be imagined getting two soon-to-be exes to agree and provide financials to the lender is not an easy task. - Paul __________________ ______________________________ Paul J. Molinaro, M.D., J.D. Attorney at Law, Physician, Broker ______________________________ Fransen & Molinaro, LLP 980 Montecito Drive, Suite 206 Corona, CA 92879 pmolinaro@LoanLaw.net 1-888-756-2652 ______________________________ The information contained in this post is NOT to be taken as legal advice. My posts are for general information and educational purposes only. If you need legal advice, please contact an attorney.

08-07-2009, 12:18 PM	#3 (permalink)
bccorona Member Join Date: Jul 2009 Posts: 16 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Paul M. Any advice you can provide on this question? Thank you Paul for your response. So far, the bank has not required anything from my ex and they have approved me for the mod. Hopefully that means I will not require her signature for anything.

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