QUESTION
Will the bank modify the loan to remove the husband's name?
Asked on May 09th, 2012 on Bankruptcy - Florida
More details to this question:
If a husband filed for bankruptcy and quit claim deed the house to his wife, will the bank modify the loan to remove the husband's name? Or does the wife have to refinance to totally remove her husband out of the mortgage.
9 ANSWERS
Bankruptcy Law Attorney serving Madison Heights, MI
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Able Legal Services, PLC
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A bank does not have to remove a parties name from a mortgage.
Answered on May 17th, 2012 at 3:31 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Normally the bank will not remove someone's name from the loan documents. The borrower can refinance which will remove the name. But that is a challenge in today's situation where the property is worth less than the debt. On the other hand, the title can be conveyed by the borrower, assuming there are no limitations in the loan documents. If bankruptcy is involved the conveying spouse needs to make certain they are not conveying an asset for less than fair market value. It is always wise to obtain competent bankruptcy advice before filing for bankruptcy. Most consumer bankruptcy attorneys offer free consultations.
Answered on May 17th, 2012 at 11:05 AM
it is very unlikely that the note will be modified without refinancing.
Answered on May 16th, 2012 at 10:31 PM
Chances are the bank will not agree to do anything. But the bankruptcy discharge makes it unnecessary to do anything.
Answered on May 16th, 2012 at 2:49 PM
Bankruptcy & Debt Attorney serving Syracuse, NY
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Theodore Lyons Araujo
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The bank may change the name but they will not. Transferring the property by quit claim Deed is always a mistake. First, it violates the mortgage unless you have the permission of the Note Holder to do so, and, again, that is never given. When you change the Deed without the permission of the Note holder you are in default under the Note and Mortgage even if you are current with the payments. Taking someone's name off the Deed if they are going to file bankruptcy waives the exemption, and means nothing because it would be a fraudulent transfer and the Trustee can take the house. Even if your attorney lies to the Trustee in the paperwork you will be unable to sell the house in the future if it is not listed in the Bankruptcy petition.
Answered on May 16th, 2012 at 12:52 PM
Family Law Attorney serving North Kingstown, RI
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Law Offices of Nelson Brinckerhoff
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Probably the latter, although without a reaffirmation, the bankruptcy filer does not owe the debt any more.
Answered on May 16th, 2012 at 12:37 PM
Immigration Attorney serving Arlington, TX
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Law Office of Pho Ethan Tran, PLLC
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To remove your husband's name from the house completely, you will need to refinance the loan and pay off the mortgage where your husband is a co-debtor.
Answered on May 16th, 2012 at 12:36 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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The bank probably will not modify the loan to remove the husband's name. It appears it would be best to refinance in the wife's name only, so that the husband is no longer on the mortgage.
Answered on May 16th, 2012 at 12:35 PM
Commercial Bankruptcy Attorney serving Davie, FL
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Law Office of Jeffrey Solomon
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The bank is not going to release someone from the promisory note. However, is your husband is already discharged, then he has no liability on the note. But the bank might want your husband to sign modifcation papers.
Answered on May 16th, 2012 at 12:34 PM