Short Sale almost complete

[moving09]

I've gone through all the preliminary short sale approval processes with my lenders and I am awaiting my lenders (2 different lenders but both loans are purchase money, no refi or heloc) approval of the hud1. The First has formally approved and I'm expecting the Second to approve as well since we've been here before with another buyer.

My question is, when I originated these loans they were in my name but the Lenders at signing, demanded in the contract that my wife sign as well, which she did. Currently the letter I have seen, that the first is proposing, which releases me from further obligation has only my name on it. Is this an issue for my wife. She is on the title and signed the original loan docs but again her name was not printed on the loan docs.

Thanks for your help.

[mbmullen]

I would suggest you contact an attorney. Some kind of loan audit may need to be done as this sounds fishy. I've never heard of a lender demanding the spouse be put on the docs at closing without them applying for the loan.

[HopingtoFind]

This is not unusual.... you're probably in one of the community property states. We have had loans where only one spouse was on the loan docs but the other spouse also had to sign Deed of Trust. In this situation my understanding is that credit of the person who is not responsible for the loan would not be effected in case of foreclosure or short sale.
But I would suggest you double check with an attorney.

[windnwaves]

If they don't have your wife's social security number, they can't report anything on her credit report.