The quick answer is, yes. The real answer is, it depends. the CFPB requires lenders starting in 2014 to recognize legitimate successor's in interest to a property that may have a loan on it and for one reason or another, need to be taken over by another, legitimate party. Recognizing them doesn't accomplish what you need though. They must work with you to try to accomplish your objective but there is no requirement they just remove him and put you in his place on the loan. Some require you to qualify. Some have assumption clauses. Again, it all depends. It's an uphill battle but worth fighting. Start with the lender. They will say they can't talk to you. Get your ex to provide you with 3rd party authorization to discuss the loan. Get the divorce decree to them. Arm them with the rules by going to the CFPB website and researching. If they stall your efforts, file a complaint with the CFPB.... more
In answer to the comment about rent... it will always be a loss. We are only taking in 1/2 our payment needs. I cannot see the market moving that much nor fast enough for us to benefit. We just resigned our lease where the renter asked us to take the rent down by 20%!
And in answer about loan modification... our main interest rates are good. In fact 1 just adjusted down into the 3's due to the LIBOR index. I also was laid off from my job in July so was unemployed when evaluating modification (am newly hired).... so no job or a new job counts against you. As does these properties being an investment property and not our primary.
Question - will 2 foreclosures hit us twice as hard? We are listed on both mortgages.... more