Loan Modification During a Divorce?

[Bent340]

Im helping my brother through a divorce and loan modification and his soon to be ex-wife wants off the mortgage so he can have the house which is what he wants but im not sure if I should be including her w2's and income considering they have already seperated bank accounts and she is out of the house. I plan to put that in the hardship letter. I am going through GMAC and they mentioned something about ten days to do it when I was on the phone with them and ten days are up and my Brother hasn't even gotten the papers in the mail yet.

Can anyone help me out with some advice on how to handle the loan mod. with the deivorce? The main problem is that if he cant get the loan mod he is hesitant to remove her from the mortgage because of the debt. Will they be able to remove her from the mortgage while doing the loan mod if she is willing to do it? It is an amicable divorce and they are doing it without an attorney.

[Moe Bedard]

A modification will not be able to remove her from the mortgage............he would have to qualify to refinance in his own name.

Here is the information regarding the programs and contacts for GMAC along with the Financial Analysis form and where to fax it.........

Homeowner Help

[Bent340]

Should I continue on with the modification and hope it goes through so he can afford the home on his own and then try something like a quick claim deed? She will likely do it anyway that will get the payment lower so that he can afford the house because there are two small kids involved that are not hers.

[Moe Bedard]

That would be options to speak with an attorney about..........

but in the meantime he should be able to work on the modification.

[~Jess~]

I'm going thru GMAC too. They said 10 days is really more of a target date. It took me about 2 weeks to get the workout package, and it's been 3 weeks since I faxed it back and they still haven't completed it yet.

I believe you can now print the workout package paperwork on GMAC's website.