Im currently separated, and my ex wants to keep the house by doing a loan modification. How does this directly affect me?
I want to buy a house later and i just want to make sure this will have no effect on my credit , when applying for another loan. by selena.blanks245 from , North Carolina. May 28th 2014
Michelle Curtis Loan Originator NMLS 401173 (MichelleCurtisLO)
#77 ranked lender in Florida - 2,245 contributions
You need to make sure you are removed from the mortgage. If you are not and there are any mortgage lates it can and will affect your credit.
Michelle Curtis Loan Originator NMLS 401173 (MichelleCurtisLO)
#77 ranked lender in Florida - 2,245 contributions
If the mortgage is in both your names then your credit has most likely already been hurt badly. If you are 120 days late chances are foreclosure proceedings are in the works. Normally with a divorce a refinance is needed to remove one or the other if that can't be down a sale of the house is the only alternative. if you are on the mortgage than everything that happens with that mortgage will reflect on your credit until you are removed, either by refinance or sale of the house.
Heres the thing...we have been separated for about 4 months..part of this modification is a quick claim deed and a separation agreement..im not understanding how either of these will remove me from the loan...only rights to the property.. correct..he could refi bit the loan is already months behind..the only option i see is short sale..which he does not want to do
Michelle Curtis Loan Originator NMLS 401173 (MichelleCurtisLO)
#77 ranked lender in Florida - 2,245 contributions
You are correct, quit claiming you off deed only relinquishes any rights to the property if the loan modification doesn't remove you from the loan, than you will still be held responsible. A short sale will be your only option if you aren't removed from the loan when the loan modification is done.
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