Loan modification without my consent

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Max357

LoanSafe Member
Nov 9, 2020
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I am on a deed on a property that I had with my ex. I am on the deed but not on the loan. Come to find out she applied for a modification that changed the loan terms by having a balloon payment at the end of the loan. I found out when a real estate agent notified me of her intent to sell the property and she needed my signature to list the house. How was the loan modified without my consent and what recourse do I have since the modification ate most of the equity.
 

Jzone

LoanSafe Member
Jun 20, 2017
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I am on a deed on a property that I had with my ex. I am on the deed but not on the loan. Come to find out she applied for a modification that changed the loan terms by having a balloon payment at the end of the loan. I found out when a real estate agent notified me of her intent to sell the property and she needed my signature to list the house. How was the loan modified without my consent and what recourse do I have since the modification ate most of the equity.
Im not an expert on divorce, but why would you continue to own property with an ex? If you are not on the mortgage, then the ex probably has a right to modify the loan without you knowing since you are not financially responsible for the debt.

If you remained on the deed after divorce you are probably entitled to 50% of the proceeds from a sale? You may want to review your divorce papers and see what was said about this piece of property if sold.
 

OneHugeMess

LoanSafe Member
May 30, 2016
597
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I am on a deed on a property that I had with my ex. I am on the deed but not on the loan. Come to find out she applied for a modification that changed the loan terms by having a balloon payment at the end of the loan. I found out when a real estate agent notified me of her intent to sell the property and she needed my signature to list the house. How was the loan modified without my consent and what recourse do I have since the modification ate most of the equity.
If you were not a borrower, or additional party to the lien (in this case, mortgage) she doesn't need your permission at all. Your only stepping into the picture because you have rights, through title.

In addition, the modification probably "ate through the equity" because the loan was severely behind. Delinquent Interest doesn't go away, and that is money that would have had to come from somewhere.
 

Frickenfrack

LoanSafe Member
Nov 15, 2020
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I should chime in here. My situation is similar, but a little more complex.

I was living with a s/o a few years ago. S/O had a home free and clear. We decided to take out a home equity loan, to do some improvements. At the time, things seemed ok. Since then, me and the S/O split up (their doing). We were never married, but had the mtg payments. Anywho, I discovered afterwards, there was another name that had a lien on the property. I also discovered my name was never on the deed upon closing. Also, the former S/O expects me to pay the mtg, while they live there. S/O had the mtg terms extended, and this was done without my knowledge. Bank does not contact me in regards to late payments. Also, bank does not send me statements, although they have my current address, and I did a COA with USPS. The loan docs do not appear right in some aspects, and the loan was modified, without me knowing it. I have asked for the mod paperwork, and they refuse to send me anything. Online, the payment history prior to the mod is "missing", and something does not appear right. Lawyers are not touching this one, due to us not being married. The other thing, bank updated the credit files as "current", although it was 64 days late before, and not it is over 45 days late. I don't get what's going on.......I refuse to make payments for a residence I do not live. The S/O expects me to pay 100% of it. NOPE!! Any suggestions? Anyone?
 

Frickenfrack

LoanSafe Member
Nov 15, 2020
4
0
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I am on a deed on a property that I had with my ex. I am on the deed but not on the loan. Come to find out she applied for a modification that changed the loan terms by having a balloon payment at the end of the loan. I found out when a real estate agent notified me of her intent to sell the property and she needed my signature to list the house. How was the loan modified without my consent and what recourse do I have since the modification ate most of the equity.

Same lake, different boat....only that I am on the loan, but not the deed. I never signed a deed. Modified without my signature.
 

isisis

LoanSafe Member
Jun 22, 2010
1,821
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North bay
Generally if you're on the loan you're still financially responsible for the debt and your consent is required to modify. I know this from experience because they wouldn't modify without the consent of my ex who quit claimed twenty years ago.

In your lake, Frickenfrack, you should have some legal rights though I'm uncertain exactly how you would exercise them. Since your consent should have been obtained and wasn't you shouldn't be responsible if the debt increased.

As for being on the deed but not the debt that's more complicated. The deed secures the debt so if you signed it you assumed financial responsibility but at the same time if you didn't sign the loan papers which include the note...well I'm not sure. How did you get on the deed but not the loan?
 

Frickenfrack

LoanSafe Member
Nov 15, 2020
4
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Generally if you're on the loan you're still financially responsible for the debt and your consent is required to modify. I know this from experience because they wouldn't modify without the consent of my ex who quit claimed twenty years ago.

In your lake, Frickenfrack, you should have some legal rights though I'm uncertain exactly how you would exercise them. Since your consent should have been obtained and wasn't you shouldn't be responsible if the debt increased.

As for being on the deed but not the debt that's more complicated. The deed secures the debt so if you signed it you assumed financial responsibility but at the same time if you didn't sign the loan papers which include the note...well I'm not sure. How did you get on the deed but not the loan?

As per the deed. I never signed a deed. I am on the note, yes, but that is it.
 

Jzone

LoanSafe Member
Jun 20, 2017
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As per the deed. I never signed a deed. I am on the note, yes, but that is it.
Wait...I've got a great idea for you! You say your ex wants you to make the mortgage payment but you don't live there?

Well, I guess it's time for you to move in. Afterall, you're making the payments and you're on the mortgage. You have every right to live there also.
 

Frickenfrack

LoanSafe Member
Nov 15, 2020
4
0
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Wait...I've got a great idea for you! You say your ex wants you to make the mortgage payment but you don't live there?

Well, I guess it's time for you to move in. Afterall, you're making the payments and you're on the mortgage. You have every right to live there also.
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I offered to buy them out, and was told to take a hike.