Ex-Wife On Title & Modified Loan

rtaibi

LoanSafe Member
How can I get my former spouse off of 1st mortgage and balloon without doing a re-fi?
I have a first mortgage and balloon note. Chase is lien holder, SPS is servicing, The
original first was with WAMU, Chase took over. We were still married in 2010 when
we got the mod. Divorced now 10. There is no payment and no interest on the balloon,
it's due on sale so it doesn't cost me anything monthly.

The ex wants her name off all of it and so do I but the payment, even at 4.125 is
comfortable so I (can't afford to) don't want to re-fi the combined balance of the two
because the first is $400K and the balloon is $200K. The property is valued at $750K and I
don't want to sell it just to solve this problem.

How can I get her off the loans without doing a re-fi? Having her quitclaim doesn't
solve anything (for her). If I could just re-fi the first and get her off it, it would be great.

This is in Los Angeles County. Is there any legal way to remove her?
 

OneHugeMess

LoanSafe Member
Absent her death, the sale of the home, or a refinance of the mortgage -- there is no possible way to remove her as a borrower from the loan or remove the credit reporting from her credit report.

The good news is --- as long as the loan is paid on time, and she deals with a decent mortgage broker (who understands the guidelines) this shouldn't affect her negatively in almost any financial transaction. In mortgage underwriting, they can "exclude" the debt from her DTI since she doesn't pay the loan -- it just takes a bit more effort.

I would even imagine having this on-time, the well-paid loan is helping her FICO Score significantly at this point. It should have over 10-Years of on-time payment history, and all the late payments should be long, long gone.

I hope that answers your questions, and maybe you can try to talk to her and convince her it isn't bad. It's like I said, it probably helps her a bit -- credit score wise, and a decent mortgage broker should be able to help her in any way it doesn't. Having that huge mortgage will never hurt her getting an auto, personal loan, or credit card.



Also - Congratulations on that modification. Sounds like a fantastic deal!
 

rtaibi

LoanSafe Member
Thanks for your reply. Admittedly, it's been a struggle at times to make consistent payments. Re-fi would add about $1000 a month to the payment. Selling is not an option right now. I might have an option to borrow $ from a family member to pay off the first. This would actually lower the payment considerably as I would be able to borrow at current rates. The property would then go into that persons trust of which I'm a beneficiary.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
The only way would be to refinance and remove her through that means. Interest rates are incredible right now I would love to give you an idea of what we can do for you - 619-379-8999 or [email protected]

She will have to sign a quitclaim and depending on the loan product, streamline refinances are available assuming you can provide proof you've been making the mortgage payment out of your own account for the last 12 months. You'd be surprised what your monthly payment will be with the lower interest rate and the balloon included.
 
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