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Bank wants Name OFF

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Moderator Emeritus

Re: Bank wants Name OFF

I think you simply need to ask the lender the rationale for removing you from the loan application. Otherwise, all you have is speculation and suspicions.

Having a loan refinanced in one person's name alone is not a complicated issue at all, and is something that loan companies deal with on a daily basis. All that is necessary to complete the loan is for the non borrowing title holder to sign a form indicating that he or she gives permission for the sole borrower to open a loan on the property. My wife and I did this a few years back when we refinanced a home equity loan in my name alone. It took less than a minute to sign the form in the presence of a notary - that was the extent of the red tape.

Even if your name was removed from the title during the loan closing - and if you are reading the documents that you sign, this shouldn't happen without your knowledge - it's not a big deal to add yourself to the title later.

Talk to your loan officer. Ask for an explanation of his recommendation to remove you from the refinance application.
Message 11 of 15
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New Member

Re: Bank wants Name OFF

This is where you are wrong.  He will not 'get the house'  He would need to apply for a loan on the outstanding balance or use any insurance/savings to pay off the outstanding balance.

 

This is what the attorney said,  "You don't sign away your rights to the loan by having your name removed.  If something happened to him and you don't have enough life insurance or savings to pay the outstanding balance, then you would need to refi... You could end up being DENIED because of any number of reasons.. Age, Lack of enough income, Credit history."

 

Decision is... **bleep** the banks. There will be no snap decision and we will live with the higher interest rate.  We are pulled the credit reports to see what is going on.  

Message 12 of 15
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New Member

Re: Bank wants Name OFF

Oh I can't believe this bank!   Said we have poor credit because we don't have ENOUGH credit.  They suggested we get a credit card!!   How stupid is that!

 

We have our car loan and our house loan!  We do not need, nor do we want a credit card loan.  OMG!    I have bad credit because I don't have a credit card!

Message 13 of 15
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Community Leader
Super Contributor

Re: Bank wants Name OFF

Unless you are applying for a reverse mortgage and you are not 62, your loan can't be denied because of age - it's in the Equal Credit Opportunity Act.  Does your attorney have a thorough background with real estate/mortgages?

 

Hoewever you should get your scores here at myFICO.com - you can get your Equifax score which will be identical to what a mortgage lender will pull, and you can also get your TransUnion scores here but it uses an older scoring model (Classic 98 vs. Classic 04) than mortgage lenders use so it won't be 100% accurate, but it should be in the ballpark.  If your scores are the same or better than your husbands, then I believe the issue with this particular lender is that they require you have a certain amount of trade lines/history from each individual on the loan.  But that is not the case with all lenders, so if your scores are good then I'd suggest you just try a different lender.

Helping people with mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Orange County, CA and lending in all 50 states
Message 14 of 15
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Established Contributor

Re: Bank wants Name OFF

Peckkale - I know it seems unfair, but it is what it is. Lenders want to see that you can handle a mix of credit responsibily in order to feel confident about your risk level. It's also about statistics and based on millions of people's credit history, the stats show that people with a good history of using credit cards are lower risk than people without them at all. While a mortgage and auto loan does feel like it should be enough, a lot of people get in trouble with CCs, so it's important for lenders to see that you can be responsbile with them.

Mid-2010 Starting Scores: FAKO EQ 476 FAKO EX 506 FICO TU98 575
July 2017 Current Scores: Approx 710 (waiting for official updates)
Message 15 of 15
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