Mortgage Question

[Commbubba19]

So back in 2011 by exwife and I split. Part of the process included me assuming the loan for our home at the time. So i contacted my bank and gave them all the paperwork, paid $500, and supposedly the loan was now in my name only.

Fast forward to earlier this year. The mortgage bank sold my loan to another bank. Whatever, this is like the 5th time that's been done and I hadn't had any problems before. Except I started noticing my ex's name on the statements.

I call, they said they received a letter (which my ex sent) to query why she was on the loan and they also had documentation from the previous mortgage bank that the loan was to be placed in my name. The lady on the phone said they would open a research case and I would receive an email.

I received the email this morning and it said per their records, my ex and i signed the original note and therefore she is to remain on the loan.

This frustrates me. I paid $500 for nothing and now the loan is likely being reported against my ex's credit. Drama in which I do not need.

I looked, but my stupid ass must have tossed the paperwork since I considered it all good and it had been fine for years.

I really feel i have only two options. Try to argue more with the current mortgage company without any written proof or refinance.

Anything I'm missing here?

 

[RDJ]

If it was part of the divorce decree it will be in there. But if you didn't sign new mortgage paperwork she is still on it. Banks are required to keep all paperwork for a certain period of time, theoretically you should be able to get a copy from them. If you paid to have her name taken off the mortgage you should get your money back if they didn't do it.

 

[97ReoCobra]

I would go back to the original lender and tell them to fix it. And don't take no for an answer.

 

[wreckit]

I would go back to the original lender and tell them to fix it. And don't take no for an answer.

That would be a great option at this point.
It would also be beneficial if your ex were to go with you and present your cases (although that may not be ideal for you two), but could work.

 

[DriftwoodSVT]

Just because the divorce decree said she was being removed from the loan has no bearing on the home mortgage itself. The only way to remove her would have been to refinance the loan under just your name. You can't 'modify' a mortgage to take a name off, you can only refinance. That's it.

Been there, done that.

 

[Torch10th]

I've never heard of this before. To get your ex wife's name off of the loan you would have had to refinance the place. I had to do this with my condo. I purchased it with a long term girlfriend and when we split I kept the place. In order to remove her name from the mortgage I had to refinance.

What you likely did with the old mortgage company was file a quit claim deed which just took her name off the house itself. It would not have absolved her from the mortgage.

Rates are low right now, I'd look into refinancing.

 

[Snake Pliskin]

What you likely did with the old mortgage company was file a quit claim deed which just took her name off the house itself. It would not have absolved her from the mortgage.

This is what I had to do. I used a real estate attorney $300 and divorce papers. Got her name off of the house and the mortgage.

 

[LS2GTO]

Just because the divorce decree said she was being removed from the loan has no bearing on the home mortgage itself. The only way to remove her would have been to refinance the loan under just your name. You can't 'modify' a mortgage to take a name off, you can only refinance. That's it.

Agree. You can't just take off someone's name from a loan without recalculating the terms of the loan (eg. refinancing). That's because the original loan was done in such a fashion that took both of you into consideration. If only one of you now wants to "own" the loan, then everything has to change as the original terms are no longer relevant. This requires a complete refinancing.

Sounds like the initial folks you spoke to just wanted to get your money by spewing BS.

 

[97ReoCobra]

It is possible to have a borrowers name removed from a mortgage without refinancing. If the mortgage has a good payment history, a low loan to value ratio, and the remaining name on the mortgage has verifiable income and excellent credit rating. It absolutely can be done. But that doesn't mean the mortgage holder has to do it.

Agree. You can't just take off someone's name from a loan without recalculating the terms of the loan (eg. refinancing). That's because the original loan was done in such a fashion that took both of you into consideration. If only one of you now wants to "own" the loan, then everything has to change as the original terms are no longer relevant. This requires a complete refinancing.

Sounds like the initial folks you spoke to just wanted to get your money by spewing BS.

 

[R.D.P.]

It is possible to have a borrowers name removed from a mortgage without refinancing. If the mortgage has a good payment history, a low loan to value ratio, and the remaining name on the mortgage has verifiable income and excellent credit rating. It absolutely can be done. But that doesn't mean the mortgage holder has to do it.

Never heard of this before - as stated above, it's been my understanding that it must be refinanced. Maybe if the loan is through a local bank or something, but that's the only way I could find it believable. 99% of Mortgages are going to require a refinance.

 

[LS2GTO]

It is possible to have a borrowers name removed from a mortgage without refinancing. If the mortgage has a good payment history, a low loan to value ratio, and the remaining name on the mortgage has verifiable income and excellent credit rating. It absolutely can be done. But that doesn't mean the mortgage holder has to do it.

But technically, that is called a refinancing. Looking at the current mortgage and comparing it to the borrowers history, income, credit rating etc. is the definition of refinancing.

To the borrower, it looked like a simple removal. To the bank, it was a simple refinancing that ended up with the same terms. But that doesn't mean it wasn't refianced in the eyes of the bank as they did all that work to ensure the single borrower was capable of paying the loan on their own.

 

[Commbubba19]

Refinancing restarts the loan under new terms.

Assuming the loan keeps the loan terms the same.

Yes I did a quit claim deed but that is not the same. That deals with the title to the property, not the mortgage.

The Bank did have me confirm income and expenses just like you would under a normal approval, but instead of new loan terms, the existing loan terms were to be used but only me as the responsible party.

 

[97ReoCobra]

It is not a refi it is a modification to an existing loan.

But technically, that is called a refinancing. Looking at the current mortgage and comparing it to the borrowers history, income, credit rating etc. is the definition of refinancing.

To the borrower, it looked like a simple removal. To the bank, it was a simple refinancing that ended up with the same terms. But that doesn't mean it wasn't refianced in the eyes of the bank as they did all that work to ensure the single borrower was capable of paying the loan on their own.

 

[97ReoCobra]

I don't know what the percentages are, but I can tell you it is a fact that a mortgage can be modified to remove a co-borrowers name.

Never heard of this before - as stated above, it's been my understanding that it must be refinanced. Maybe if the loan is through a local bank or something, but that's the only way I could find it believable. 99% of Mortgages are going to require a refinance.

 

[LS2GTO]

It is not a refi it is a modification to an existing loan.

You may call it a "modification", I and others call it a "re-financing". It's basically the same thing. You are changing the terms of the loan based on new information.

Let's agree to disagree on that one.

 

[res0n0xg]

You may call it a "modification", I and others call it a "re-financing". It's basically the same thing. You are changing the terms of the loan based on new information.

Let's agree to disagree on that one.

There is no agreeing to disagree, you're 100% wrong, it's not a refinance, it's a modification, there is no middle ground. Look it up and it's completely up to the lender if they choose to do so, in the new housing market getting it done will be very hard, but again if the LTV is good (lots of equity) your credit is amazing and you make great money compared to your mortgage costs, they may do it but they sure as shit can tell you no and there would be no other choice but to refi.

 

[97ReoCobra]

You may call it a "modification", I and others call it a "re-financing". It's basically the same thing. You are changing the terms of the loan based on new information.

Let's agree to disagree on that one.

That is the very definition of a modification. A refinance would be tossing the old mortgage in the trash and starting over.

 

[ford fanatic]

The only acceptable answer here is to kill her...yeah I've been through this before too...

 

[97ReoCobra]

The only acceptable answer here is to kill her...yeah I've been through this before too...

No, that would be rude. Since she already signed the quit claim you go in and have your name removed from the mortgage.

 

[97ReoCobra]

Seriously... Go in and dump this square on the desk of the people who took your money and said it was done. If they can't correct it get your money back. Then tell the current mortgage holder if they require a refi you will not be doing it with them.