I am in the middle of walking away from my house in MD (recourse state) and missed my first payment on May 1 2012. I have a first note for 225k with Fannie Mae (serviced by wells Fargo) and a 90k Heloc through WF. The house is only worth 225k, so the second note is worthless. So far all I have received are Notices of Intent to Foreclose from WF and now one from Samuel White, representing Fannie Mae. I am in the middle of a divorce so a delay in the process would certainly be helpful.
Here's where it gets interesting. I was looking through the on line title search for my state, and found that my wife was recorded on the note when I refied a couple of years ago. She should not have been; due to her credit problems mine has been the only name on and real estate transactions for the past 10 years. I looked at the actual scans and it looks like the document preparers listed her as co borrower, but she never signed anything of the documents - she couldn't have, she wasn't even in the room.
So the question then becomes how does this affect the situation? I imagine it will cause some delay, since I assume the note will need to be straightened out in the computer system. But so far no one seems to be aware of it but me - I am the only person named on any of the papers. So do I get it corrected now or wait until an opportune time? And if the latter, when would that opportune time be?