topic Re: On mobile home title, but not on loan? in Relationships and Money

On mobile home title, but not on loan?

texasccw — Tue, 04 Jan 2011 16:54:52 GMT

I have a problem that I need help with. I have been working on my credit for the past year and have brought it up significantly to get a new mortgage and have started getting new credit cards with the help of my current wife. I have been grooming her credit and all we need now is the aging of accounts to kick in and she should be well into the 700's.

A few years ago I moved in with my then current girlfriend. We decided to get a mobile home and put it onto her parents land. At the time of the purchase of the mobile home my credit was not great so she was put as the primary and I co-signed on the loan. I moved out several years later and since the mobile home was on her parents property she decided to keep it and pay for it. The loan was transferred to Vanderbilt and she is now the only one on their payment records. When she defaults they refer to the title and send me collection notices. I have not seen it come out on my report since I monitor my credit with myfico, but I fear that it will eventually hurt me. How is this possible? I contacted them to remove me and they said the only way is to refinance in her name only. This option is impossible since the value has depreciated. What are my options? I now have 2 children with my wife and have moved onto a better life, but this is still looming. There is more to the story, but I want to keep it brief. I apologize for the rant, but I am in need of assistance.

Re: On mobile home title, but not on loan?

MarineVietVet — Tue, 04 Jan 2011 17:05:16 GMT

texasccw wrote:
I have a problem that I need help with. I have been working on my credit for the past year and have brought it up significantly to get a new mortgage and have started getting new credit cards with the help of my current wife. I have been grooming her credit and all we need now is the aging of accounts to kick in and she should be well into the 700's.

A few years ago I moved in with my then current girlfriend. We decided to get a mobile home and put it onto her parents land. At the time of the purchase of the mobile home my credit was not great so she was put as the primary and I co-signed on the loan. I moved out several years later and since the mobile home was on her parents property she decided to keep it and pay for it. The loan was transferred to Vanderbilt and she is now the only one on their payment records. When she defaults they refer to the title and send me collection notices. I have not seen it come out on my report since I monitor my credit with myfico, but I fear that it will eventually hurt me. How is this possible? I contacted them to remove me and they said the only way is to refinance in her name only. This option is impossible since the value has depreciated. What are my options? I now have 2 children with my wife and have moved onto a better life, but this is still looming. There is more to the story, but I want to keep it brief. I apologize for the rant, but I am in need of assistance.

Hello and welcome although I wish it was under better circumstances.

If you co-signed the original loan then you are equally responsible for the payments. It really doesn't matter what the payment records of Vanderbilt say. Your name is on the loan documents.

I agree that the only way to remove you from the loan is for her to refinance in her name only. I don't see any other way but perhaps others know of different options. I hope you get this messed worked out.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Re: On mobile home title, but not on loan?

texasccw — Tue, 04 Jan 2011 17:06:04 GMT

A little bit more info. I checked my latest report I have on file and the original loan was with Oakwood Acceptance and that is on my credit report. The notes state that it was transferred to another lender and I am definitely not on that loan since Vanderbilt is not a tradeline. Thanks for any responses.

Re: On mobile home title, but not on loan?

JM-AM — Tue, 04 Jan 2011 17:46:20 GMT

texasccw wrote:
A little bit more info. I checked my latest report I have on file and the original loan was with Oakwood Acceptance and that is on my credit report. The notes state that it was transferred to another lender and I am definitely not on that loan since Vanderbilt is not a tradeline. Thanks for any responses.

I honestly do not understand how you came to the terms that you are not on the loan. If you signed the originally loan as a co-signor just because the loan was transferred and or sold does not remove you from the loan.

Just because Vanderbilt is not on your Credit Reports as a Trade Line does not mean if she defaults they can not come after you.

May be I am missing something here and some one will chime in to explain that you are correct, but until then I have to agree with marinevietvet that you will be responsible until it is refinanced in her name only.

Re: On mobile home title, but not on loan?

texasccw — Tue, 04 Jan 2011 17:53:25 GMT

When the loan was transferred it was not transferred with my signature. Does that make sense? The mobile home needs to be registered like a vehicle and I am on that title only not on their loan docs. She is the only one paying, or better yet, not paying it. Someone please let me know if I am wrong and has gone through this same or similar problem. I think they are in the wrong here.

Re: On mobile home title, but not on loan?

BungalowMo — Tue, 04 Jan 2011 18:12:44 GMT

Isn't the co-signer of a loan usually the one with the better credit? Maybe with this type of purchase it's different.

For this thread, I will just watch, read....and learn.

Re: On mobile home title, but not on loan?

JM-AM — Tue, 04 Jan 2011 18:34:30 GMT

texasccw wrote:
When the loan was transferred it was not transferred with my signature. Does that make sense? The mobile home needs to be registered like a vehicle and I am on that title only not on their loan docs. She is the only one paying, or better yet, not paying it. Someone please let me know if I am wrong and has gone through this same or similar problem. I think they are in the wrong here.

Makes absolutely no sense. If they do not have your signature then they wouldn't have her signature either as you both signed the same paperwork. I am sure she didn't sign individual paperwork with-out your signature if you were the co-signee.

Re: On mobile home title, but not on loan?

JM-AM — Tue, 04 Jan 2011 18:41:33 GMT

BungalowMo wrote:
Isn't the co-signer of a loan usually the one with the better credit? Maybe with this type of purchase it's different.

For this thread, I will just watch, read....and learn.

This is not always true. Sometimes creditors/lenders want the one with longer history or longer employment, better credit, etc etc as the major purchaser.

No real rhyme or reason just an underwriter decision in most cases.

Re: On mobile home title, but not on loan?

texasccw — Tue, 04 Jan 2011 20:03:35 GMT

I dont understand why the tradeline is not in my report. I definitely don't need or want it. I think they are just trying to grab for whatever they can.

Re: On mobile home title, but not on loan?

haulingthescoreup — Tue, 04 Jan 2011 20:05:41 GMT

They may not be reporting it, for whatever reason, but as long as it's the original loan that you signed on, but now just transferred to someone else, it's still your loan, I think.

If the loan starts to go sour, keep your fingers crossed that it remains not reporting...

Re: On mobile home title, but not on loan?

texasccw — Tue, 04 Jan 2011 20:08:55 GMT

I just received a certified letter that I will be picking up from the post office in a few. I will add more info if necessary. I think since I have cleaned up my credit they want to get something out of me. I am sticking to my guns and saying that they are in the wrong here. Should I go get the cert mail?

Re: On mobile home title, but not on loan?

JM-AM — Tue, 04 Jan 2011 20:31:12 GMT

texasccw wrote:
I just received a certified letter that I will be picking up from the post office in a few. I will add more info if necessary. I think since I have cleaned up my credit they want to get something out of me. I am sticking to my guns and saying that they are in the wrong here. Should I go get the cert mail?

Picking up the certified mail or not picking it will not change the outcome if it relates to this debt. They just keep on their records the attempts they made to contact you at last known address on file and that is enough for them to proceed with reporting and collection activities.

Re: On mobile home title, but not on loan?

Lel — Tue, 04 Jan 2011 22:16:26 GMT

texasccw wrote:
When the loan was transferred it was not transferred with my signature. Does that make sense? The mobile home needs to be registered like a vehicle and I am on that title only not on their loan docs. She is the only one paying, or better yet, not paying it. Someone please let me know if I am wrong and has gone through this same or similar problem. I think they are in the wrong here.

Mortgage loans get transferred from lender to lender all the time, without requiring the consent or signature of borrowers. This does not mean that you are somehow excused from the debt obligation to which you agreed when you signed the initial loan documents with Oakwood Acceptance. In all likelihood, there is some fine print in your original loan application states that your loan may be transferred to another lender or servicer. It's standard language on the Uniform Residential Loan Application form. I'm guessing that the loan application for manufactured homes might be different, but I would expect similar language on that form. Some borrowers in default have attempted to use this practice (the transfer of mortgages) to challenge the validity of the debt, but for the most part they have not been successful in doing so.

Regardless of whether you feel the debt is valid or not, this will be a problem if you try to apply for a new mortgage. In the disclosures of the Uniform Residential Loan Application it specifically asks: "Have you directly or indirectly been obligated on any loan which resulted in foreclosure, transfer of title in lieu of foreclosure, or judgment? (This would include such loans as home mortgage loans, SBA loans, home improvement loans, educational loans, manufactured (mobile) home loans, any mortgage, financial obligation, bond, or loan guarantee...)" You would be required to disclose the mobile home loan, even though it doesn't appear on your credit reports (for now - a collection agency would not be shy about reporting the debt). Failure to do so would represent mortgage fraud. Furthermore, even if the loan doesn't appear on your reports, it will probably come up during the title search for any new purchase application, which would also halt your home buying efforts.

In my opinion, denying the debt isn't going to do you any good, and neither is ignoring letters from collection agencies or creditors. This problem isn't just going to go away quickly, and so long as it remains unresolved, you won't be able to fully move on with your life. As has already been mentioned, co-signing a loan is explicit acceptance of responsibility for the repayment of the debt.

Re: On mobile home title, but not on loan?

texasccw — Tue, 04 Jan 2011 22:27:10 GMT

Thanks, I appreciate the responses. Now I know something is wrong because as I mentioned in my first post I just got approved for a home recently. We are going on one year since I closed. I am really confused as to what my next approach should be. This is not the first time that I received the certified letters. She usually gets back into paying and they completely stop coming.

Re: On mobile home title, but not on loan?

Lel — Tue, 04 Jan 2011 22:43:20 GMT

Ah, I thought you were in the process of obtaining a new mortgage. I misunderstood. Either the mobile home loan wasn't in default at that time, or perhaps Vanderbilt really lost track of you in the transfer process. However, nothing that you have written indicates that you are officially and legally released from that debt obligation. I would now be concerned about any liens against your current home stemming from the mobile home debt. This is not something to be passive about. Have you spoken with your ex-girlfriend about what's going on?

Re: On mobile home title, but not on loan?

texasccw — Tue, 04 Jan 2011 23:22:04 GMT

I still have contact with her father as he is my former business partner. I don't really want to aggravate the situation and ask what is going on, but I don't have a choice at this time. The previous time was a hassle. I asked her father to refinance and he said it wasnt possible at the moment. Maybe things have changed? It really bothers me how irresponsible she is. I wish she was completely out of my life!

Re: On mobile home title, but not on loan?

O6 — Thu, 06 Jan 2011 01:23:32 GMT

texasccw wrote:
When the loan was transferred it was not transferred with my signature. Does that make sense? The mobile home needs to be registered like a vehicle and I am on that title only not on their loan docs. She is the only one paying, or better yet, not paying it. Someone please let me know if I am wrong and has gone through this same or similar problem. I think they are in the wrong here.

Lenders transfer / sell their credit portfolio every day. They virtually never need your approval or even knowledge when they do so.

If you signed the original mortgage documents / promissory note, until such time as she has refinanced in her own name you are obligated, end of story.