Co Borrower signature for mod
- Thread starter CharlesTN
- Start date
OneHugeMess
LoanSafe Member
Not always. Some Mortgage Companies, with a Divorce Decree, or a Quit Claim Deed will allow one-party to sign a joint Loan Modification.
OneHugeMess
LoanSafe Member
Out of curiosity, are you completely sure both of you were on the original loan? A lot of times, with the old bubble-era mortgages, the mortgage company would take the spouse with the Higher Credit Score, and put the loan in their name only. It's possible that is what happened in your case.
If not -- there is a possibility, the loss mitigation department would allow for only one signature, but, that's not a common exception. I hate to say it, but there's a chance she forged your signature on the documents... however, they would have been notarized. So, that notary would also have to be in cahoots as well.
You should realize though - that a loan modification, is considered a lot better than a Foreclosure. And... a lot of loan programs, and banks will generally ignore it.
I did a title search this week. We were both listed as borrower/ co borrower. The mod is showing under my name on title search as well, though I didn't sign it. The loans originated with First Franklin then to Bank of America and then to Nationstar. I realize that a mod was better than foreclosure. Unfortunately with Nationstar adding the extra $22k and also charging off the 2nd mortgage at $35k (trying to settle w veripro now) the house is very underwater and now we're divorcing.
OneHugeMess
LoanSafe Member
You can either do a short sale, or one of you (if you trust each other) can keep the house and keep on making the modification payments.
Besides, hiring a lawyer, there’s not much that can be done. Likely the loan was delinquent before the modification - and those arrears would still be due.
One thing you should also be aware of - is generally the modifications afford a payment far below the rental value of a comparable home, so most homeowners are better off staying instead of leaving. You are also, more likely better off paying the modification and renting the home out - than walking away or short selling.
It’s something to keep in mind.
Besides, hiring a lawyer, there’s not much that can be done. Likely the loan was delinquent before the modification - and those arrears would still be due.
One thing you should also be aware of - is generally the modifications afford a payment far below the rental value of a comparable home, so most homeowners are better off staying instead of leaving. You are also, more likely better off paying the modification and renting the home out - than walking away or short selling.
It’s something to keep in mind.
OneHugeMess thank you for your help! I'm still unclear though on if the mortgage servicer can just remove a co borrower without any quit claim or divorce. I am the wife. My husband signed two mods, one in 2013 and another in 2017. I've seen the paperwork and it's only in his name. I am listed as co borrower on the original loan and the deeds have my name and have me as co borrower. I do realize the modifications kept us in the house but the mods have also changed the terms of the mortgage and I did not agree to those changes and I did not sign anything. So I'm trying to understand how I can be removed from changing the terms of a mortgage that I am responsible for?
OneHugeMess
LoanSafe Member
Out of curiosity, does this loan appear on your credit report?
This is a recent reply to me from the current servicer:
Under Section 3B in the enclosed Modification Agreement, the terms state that the new principal balance would be $110,177.46, which increased from the pre-modification unpaid principal balance of $88,101.87. The total increase of the
principal balance amounted to $22,075.59, and is labeled as “No Desc. Available.” There is no specific
breakdown available, as the amount is additional principal added to the loan to compensate for interest
and fees accrued during delinquency.
They also extended the loan maturity date to 2053. I'm just trying understand if the mortgage terms that I signed for can just be changed without my signature of agreement. Thank you!
Under Section 3B in the enclosed Modification Agreement, the terms state that the new principal balance would be $110,177.46, which increased from the pre-modification unpaid principal balance of $88,101.87. The total increase of the
principal balance amounted to $22,075.59, and is labeled as “No Desc. Available.” There is no specific
breakdown available, as the amount is additional principal added to the loan to compensate for interest
and fees accrued during delinquency.
They also extended the loan maturity date to 2053. I'm just trying understand if the mortgage terms that I signed for can just be changed without my signature of agreement. Thank you!
isisis
LoanSafe Member
No, they can't lawfully change the terms without your knowledge. It's not a binding enforceable contract if you didn't agree to the terms. However, unless it was agreed that the arrears would be forgiven then they would be entitled to include them in the total.
As for extending the maturity date, that may have been done to keep you payments low. Still it's important to do the math. Figure out the total cost of the new payments because you could be paying a lot more and you didn't agree to that.
As for extending the maturity date, that may have been done to keep you payments low. Still it's important to do the math. Figure out the total cost of the new payments because you could be paying a lot more and you didn't agree to that.