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2 Bumps

Assuming a mortgage when already a co-borrower?

Not even sure where to put this. Hopefully, someone here has been in this situation and can give me some advice. I own a home that has a mortgage in both mine and my ex-DH's name (he quit-claimed it to me). His name is first. It is an FHA loan and with Bank of America. I hate Bank of America.

I've contacted them on several occasions to try to get them to take his name off the mortgage because he filed bankrupt and listed the house. So, since I've been on this loan and continued to pay because I've not filed bankrupt and the loan is current, I don't understand why they can't just drop his name.

BOA sent me assumption papers. They are aware I'm already on the loan, I couldn't have discussed any of this with them if I weren't. I don't understand this. I'm not very experienced with home mortgages. This was my first home purchase.

I looked over the assumption papers and it looks like they want to see if I qualify which I won't. I'm now a housewife and don't work outside the home. My DH has been paying the mortgage. We don't want to do a refi with him because we want to buy a bigger home for our growing family. We don't even live in the home, we are renting it out. It's a two bedroom home in town and we need at least three bedrooms (five, soon to be six kids). We've considered selling the property but we'd be very lucky if the home brought what I owe on it.

I'm going to try and talk to BOA again. Last time I spoke to them, I spoke to the Bankruptcy dept. and explained again everything and they just said they'd send me some paperwork, didn't tell me it was assumption papers. They want 2 yrs of tax returns, income verification, and a "relationship letter" for my ex to give his approval of the "sell." This is complete BS! Has anyone dealt with this before? Am I going to have to refi this or assume this? Could there be other options?If I send in the assumption papers and don't qualify, what are they going to do? Foreclose on a current mortgage? This all seems so silly.

Sorry this is so long. I'd appreciate any advice.

Answer Question

Asked by HHx5 at 9:45 PM on Apr. 25, 2013 in Home & Garden

Level 24 (20,625 Credits)
Answers (6)
  • This does sound very strange to me. I haven't dealt with this myself as my ex was awarded the house (I didn't want it) and allowed it to go into foreclosure, which ruined my credit.

    I would suggest talking to a local real estate agent. Explain that you and your DH would like to buy a house but need to sell your rental 1st. I'm willing to bet the real estate agent would bend over backwards to help you, or at least point you in the right direction.

    Good luck and congrats on the new addition!

    Answer by tempsingl3mom at 10:22 PM on Apr. 25, 2013

  • Thank you! I did wander about talking to a real estate agent or maybe a real estate attorney or even a bankruptcy attorney. I'm pretty befuzzled over this, lol. My first instinct was call BOA and chew someone out but that wouldn't be fair. But it might get me some answers. I thought about withholding payment until they take the time to check their records. I sent them a copy of his bankruptcy papers. Ugh, you'd think they would just drop his name. Maybe they sent me the wrong papers or misunderstood. I don't know.

    Comment by HHx5 (original poster) at 10:49 PM on Apr. 25, 2013

  • I would say to talk to a real estate agent as they will be working for you. Real estate lawyer would likely just be after your money, unless you can get a free consult. For sure don't withhold payment as that will make things sticky. Chewing someone out might make you feel good and you might get to talk to the right person. But it might put up a road block too. Try the real estate agent.

    Unless someone out there has better ideas.....

    Answer by tempsingl3mom at 11:01 PM on Apr. 25, 2013

  • I'm far from an expert, but my best guess would be that though you were on there as a co-borrower, you weren't really considered in the initial loan. Just kind of a name on the paper, so to speak. So now, when you want to take over the loan, they basically have to do what they would if you were applying for a new loan: ensure you qualify. If you won't qualify, then I would imagine the only option left to you would be to try to get it in your current husband's name. Otherwise, yes, I would guess they would take possession - not sure if they would call it foreclosure or something different in a case like this.

    But again, I'm not an expert, so that's just my best guess. I would find a real estate agent or attorney who would be much more familiar with the ins and outs of this. I also seem to recall BOA is one of the worst for screwing people over in home loans. So I truly wish you the best of luck!

    Answer by wendythewriter at 7:50 AM on Apr. 26, 2013

  • thanks, wendythewriter

    Comment by HHx5 (original poster) at 8:41 AM on Apr. 26, 2013

  • Talked to mortgage company again. Now I'm wishing Id have just let this alone. B of A doesn't have the loan flagged with the ex's BK so they aren't aware of it! Even though I sent them his public record BK papers! But, I found out I may only need to do a simple assumption where I wouldn't have to requalify. Kinda afraid of what I might not know!

    Comment by HHx5 (original poster) at 2:01 PM on Apr. 26, 2013

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