getting co-owner's name off mortgage

[hesthedevil]

What is the name of your state (only U.S. law)? KY

I have been through a mess with my ex (unmarried). I reside in our jointly owned home and have finally received word from my mortgage company that they will reduce my payment under HAMP guidelines. In my HAMP paperwork that I submitted, I explained everything that has ensued with my ex. However, a representative told me over the phone yesterday that unless my ex signs the loan mod docs, I am not eligible.

I am furious bc my "advocate" at the mortgage company told me to obtain a quit claim deed, which my attorney is working to get. Of course my ex is not willingly signing, but it will be court ordered.

My ex has filed chapter 7 (now converted to a chapter 13) BK, so the mortgage company is getting no money from him.

How likely is it that if I apply to have his name removed from the mortgage that the mortgage company will do it? Have you ever heard of a mortgage company removing one of the borrower's names?

Please advise! Thanks.

[JETX]

Originally Posted by hesthedevil

I am furious bc my "advocate" at the mortgage company told me to obtain a quit claim deed, which my attorney is working to get. Of course my ex is not willingly signing, but it will be court ordered.

WHOA!!! You have this ALL screwed up.

There are TWO separate processes here!!
A quitclaim deed does NOT affect the mortgage nor does it release or remove the persons obligation to pay the mortgage.
Nor does a 'release from mortgage' affect the ownership of the property.

mortgage
n. a document in which the owner pledges his/her/its title to real property to a lender as security for a loan described in a promissory note. Mortgage is an old English term derived from two French words "mort" and "gage" meaning "dead pledge." To be enforceable the mortgage must be signed by the owner (borrower), acknowledged before a notary public, and recorded with the County Recorder or Recorder of Deeds. If the owner (mortgagor) fails to make payments on the promissory note (becomes delinquent) then the lender (mortgagee) can foreclose on the mortgage to force a sale of the real property to obtain payment from the proceeds, or obtain the property itself at a sheriff's sale upon foreclosure. Upon payment in full the mortgagee (lender) is required to execute a "satisfaction of mortgage" (sometimes called a "discharge of mortgage") and record it to clear the title to the property.

quitclaim deed
n. a real property deed which transfers (conveys) only that interest in the property in which the grantor has title. Commonly used in transfers of title or interests in title, quitclaims are often made to family members, divorcing spouses, or in other transactions between people well-known to each other. Quitclaim deeds are also used to clear up questions of full title when a person has a possible but unknown interest in the property. Grant deeds and warranty deeds guarantee (warrant) that the grantor has full title to the property or the interest the deed states is being conveyed, but quitclaim deeds do not warrant good title.

How likely is it that if I apply to have his name removed from the mortgage that the mortgage company will do it? Have you ever heard of a mortgage company removing one of the borrower's names?

No one can answer as to what your mortgage company may or may not do. Generally, if there is no incentive (or upside) to a lender releasing a person who is OBLIGATED to repay, they won't do it. It is unlikely (in my opinion) that they would release him... at least BEFORE his obligation is discharged in bankruptcy. After the discharge, they might!!

[latigo]

Originally Posted by hesthedevil

What is the name of your state (only U.S. law)? KY Of course my ex is not willingly signing, but it will be court ordered.

My ex has filed chapter 7 (now converted to a chapter 13) BK, so the mortgage company is getting no money from him.

Tell me something. What has led you to believe that a court has the authority to order your ex lover to present you with a quitclaim deed covering his interest in this “jointly owned home”? Anymore than a court could order you to deed your interest over to him.

Are you talking about some sort of adversary proceedings in his bankruptcy case?

[hesthedevil]

Well, our local family court ordered both of us to pay 1/2 of the mortgage until it sold. I paid my half. He did not. The mortgage company stopped accepting my half payments, but sent my checks back to him. He, of course, refused to return my money to me. I stopped paying as well at the advice of my local branch manager and the customer service rep. We have been in and out of family court 5-6 times, but my ex's third attorney now argues that family court has no SMJ. I realize that most of the people here agree with that decision.

The house payments are now 11 months behind. The 2nd has charged off, but I hope to work out some arrangements with them.

We owe $237000 on the house. It was on the market for one year. Only one offer was received for $170000, but it was quickly withdrawn when the bank would not move/communicate.

In my opinion, I have done everything the court has ordered me to do, but he has not. I have been proactive in working with the bank. He is trying to ruin me.

Again, he has indicated in his BK that he wishes to surrender his interest in the property. I have a phone appointment with my attorney this Monday, and I need to know what to tell him to do.

If it is possible that the bank removes my ex from the mortgage, then a quitclaim deed should suffice. If not, then perhaps I need to sue him in civil court.

I also need to know if I need to push my attorney to show up to my ex's BK meeting of creditors OR the plan presentation meeting to get my ex to sign the quit claim deed. I feel that it is rather risky to wait until the family court hearing in December, as I fear she will rule that she does not have SMJ. This beyond sucks bc I have paid my attorney over 8K.

As you can see, this is a total case of "I want to get her any possible way I can." He is succeeding. I do not deny the fact that I was stupid to get myself into this situation with my father's child. However, I am now at "do or die" (financially), so if I can have a clear path to discuss with my attorney Monday, that would be great!

What are adversary proceedings in his BK?


Thanks for ANY help...

[hesthedevil]

Please help me!