Loan assumption qualifications after HAMP modification
Ex and divorced in 2010 and he recently defaulted on the mortgage. My name is still on the loan. He was approved for a HAMP modification and has 2 more trial payments to make before the modification becomes permanent. How does an assumption work if he is trying to remove my name? Is it easier to do than refinance? I was told he would need to qualify for an assumption. If he qualified for a home modification, won't he qualify for the assumption? by rae82067 from Arlington Heights, Illinois. Jul 7th 2014
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
First, you are responsible for the mortgage payment if he does not pay, and it will affect your credit. 2nd, if he needs to do a modification, then it's very unlikely he will qualify for the loan on his own.. and the fact that the payments are behind will disqualify him for any type of conforming loan product. If you and your ex qualified at the time for the loan, and now that it's behind and he's attempting to do a modification, then the lender will not release your liability. In fact, most lenders will not allow a spouse to remove another spouse without doing a full up refinance. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com
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