IN NEED OF HELP. Tricky Situation BOFA

[ParadisePromise]

Scenario

I have a Bofa 8020 Mortgage Loan.

The Loan is under my uncles name, (he signed for me and my Wife)

Me and my wife are currently living in the property and have been paying for the home. And all the bills are under my name.

I submitted a loan modification request with my uncles income/ information, and it was denied.

I would like to request a new process but I have no idea weather I should enter the property as a rental or stay with my uncles income information.

The Home is listed as a Primary property, but he is on another home title (not Loan).

Any tips would be greatly appreciated.

Also are lenders helping Modify Investment properties?

[LHarveyMadman]

Since your home is not his principal residence (and the lender will want proof of this), then it does not qualify for relief under the Home Affordable Modification plan.

Still, lenders might modify the loan outside this plan. Several owners of investment property here have gotten modification before the government came up with the current plan.

[SillyWorld]

Have you tried to apply on your own if you been there for a few years, or if the loan is FHA it may be assumable

[windyCA]

I have a tricky situation with BoA as well.

My husband and I already filed legal separation, and I will be taking over the title and mortgage of the house, which is our primary residence and we are still living there. We only have one loan with BoA, the balance is about 482K, and the FMV right now maybe between 250k to 280k. BTW, we are in CA.

My husband will be moving out soon, the household income will reduce from 130k to 90k (my income is 90K/year). Current mortgage is about $3600 a month including insurance and property tax. I won't be able to afford this monthly payment with my own income, so I am thinking about a load mod with BoA.

Does anybody that if I can get loan mod based on my own income (under Obama's new program, 31% of gross income), and take my husband off the loan? We both signed the note when purchased the house. Someone said even we separate or divorce, my husband is still liable for the loan since his name is on the note. Is that true?

However, I don't expect my husband to help with the payment after he moves out, for his income is very low (less then 40K a year) and he will have to pay rent the child support. So I would like to get a loan mod based on my sole income, which I will be able to afford in the long term, without my husband's contribution.

Is there any chance that I will get appoval for the loan mod? Is I don't get approval, what should I do next? Will the bank look at my husband's income as well and have him sign the loan mod documents?

Pleae give advice, thanks.

[windyCA]

I forgot to mention that we are current on payments. But I might be behind soon if don't get loan modified.

[SillyWorld]

Once you get Divorced and can have him sign off on the loan, then they will look at your income and eother tell you you qualify for rfinance and then may give you average interest rate, as a Divorce is a Hardship

[windyCA]

SillyWorld,

Thanks for the information.

How about legal separation, can I have him sign off on the loan, and how? Does he need to sign off the loan and transfer the title before I start the loan mod application?

Will lenders consider legal separation same as divorce? We filed legal separation instead of divorce because he is on conditional green card right, just to keep his immigration status.

Thanks for any advice.

[SillyWorld]

I can only say what I went through, I am just a member like you, would need to ask a Lawyer, he can sign off the title but he is responcible for the loan untill it gets refinanced without him, unless your income can qualify for the remianing balance due, like say your interest now is 8% with current 4.87% could make your monthly payments 3 to $400.00 a MO less, and thats just with normal refinance.

As for Legal seperation, count as Divorced Not here in PA, and once a spouse removes there undergarments from the home thats Legal seperation in PA

[LHarveyMadman]

windyCA, you really need to address your questions to a real estate lawyer. There's lots of smart and experienced people here, but this could be a real legal headache and you should seek expert advice and guidance.

You have the biggest headache by far in this separation, since you are going to have to assume responsibility for the loan. As long as your spouse remains on the mortgage to the home (even if is taken off the deed), then his credit standing is at stake, just like yours.

If you have signed some form indicating that you were going to take over the mortgage completely, then the burden is on you to either refinance to a loan in your name only or get his name removed from the mortgage note. Refinancing will be a problem for you, since your home's value is now below the mortgage amount. I don't know how easy it is to remove a name from an existing mortgage, if it possible at all.

If you default on the loan and your spouse's name is still on the loan, then his credit will take a huge hit too. If your separation agreement specified that you were supposed to terminate his financial obligation, then he could seek legal remedy against you in the future, especially if this credit hit affects his ability to obtain new credit or get a job. Yes, prospective employers can legally pull your credit report when deciding whether to hire you.

This is a serious problem that affects many people who have undergone divorce or separation. I hope some straightforward solution will be found for you. But you really need to get in contact with a real estate lawyer ASAP.

[windyCA]

LharveyMadman,

Thank you for your suggestion, I will contact a real estate lawyer.

I will also try the NACA program, I have attended the workshop and will have a phone interview this Saturday.

Will keep you posted. Thanks.