Author Topic: Family member wants to Refi- but different name on loan  (Read 434 times)

CarnivoreforLife

  • 5 O'Clock Shadow
  • *
  • Posts: 18
Family member wants to Refi- but different name on loan
« on: October 29, 2020, 02:08:08 PM »
Hello MMM fam,

I'm asking for help for a family member...

My sis in law mom would like to refinance her mortgage.  However, she was divorced from her ex-husband years ago and the loan is under his name.  The deed is under sis in law and her moms name and ex-husband is out of the country. 

Interest bearing balance is around $60,000.
non interest bearing principal is around $33,000

From what I was told was they did a loan modification years ago- hence the $33,000 non interest bearing...

what are their option? since ex-husband is out of the country and the loan is under his name...
Thank you in advance for any suggestions/advice.

yachi

  • Pencil Stache
  • ****
  • Posts: 650
Re: Family member wants to Refi- but different name on loan
« Reply #1 on: October 29, 2020, 03:57:16 PM »
What's wrong with getting a new mortgage in her name that pays off the old mortgage in her ex husband's name?  i.e. a typical refinance with a change in borrower.  Banks do this all the time in cases of divorce.  She'll need enough value in the house to qualify to borrow 60k+33k.

cchrissyy

  • Pencil Stache
  • ****
  • Posts: 910
  • Location: SF Bay Area
Re: Family member wants to Refi- but different name on loan
« Reply #2 on: October 29, 2020, 04:06:08 PM »
if she's the only one on the title t the house she can refinance it without his knowledge/approval/involvement. the old loan will be paid in full and the new one will be only her name.

CarnivoreforLife

  • 5 O'Clock Shadow
  • *
  • Posts: 18
Re: Family member wants to Refi- but different name on loan
« Reply #3 on: October 29, 2020, 06:47:07 PM »
ok- I will let them know!

thank you both so much.