QUESTION

Can a company modify a loan without both borrowers' consent?

Asked on Jun 02nd, 2014 on Bankruptcy - Florida
More details to this question:
The mortgage company is in one state but property is in another state. I signed a quit claim to my ex. He was to refinance but didn't. The mortgage was modified without my consent. Is this legal? The mortgage company is holding me liable if he defaults.
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10 ANSWERS
Mattias F. Johnson
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Answered on Jun 19th, 2014 at 8:53 AM
The first thing to note is that a quit claim deed only transfers title to another, it does not transfer the mortgage. If the terms of your divorce judgement were that your ex was to refinance the loan and assume all dept on the property, you should petition the court that granted the divorce to enforce this portion or hold your ex in contempt. I am not sure what the modification was, but if the modification took away any of your rights than you certainly have a claim. You would want to contact an experienced family/real estate attorney in your area to help you handle this as expeditiously as possible and to ensure that your ex's actions don't have any effect on your financial situation.

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Answered on Jun 16th, 2014 at 10:37 AM
Was he under court order to refinance in your divorce judgment? If so file a motion in the court to force him to refinance it.. not just modify it. under penalty of contempt and jail!

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Answered on Jun 11th, 2014 at 7:58 PM
It cannot be modified without your consent unless: 1. The original note and mortgage authorize changes, or 2. The modification is entirely beneficial, such as a rate reduction without lengthening the payment schedule, in which case it is probably within the contractual right of the lender to waive amounts to which it is entitled.

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Answered on Jun 11th, 2014 at 6:28 PM
A spouse can give consent for the other in this kind of transaction. You don't say why you signed the quit claim deed or if it was part of a larger context e.g. a legal separation. If you were on the mortgage before, there would be no reason for you not to be on the mortgage again, unless there was either a written agreement to the contrary or a court order. Talk to a lawyer.

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Answered on Jun 11th, 2014 at 6:00 PM
You signed a quit claim which means you have no right to the property. Therefore a loan can be modified without your consent.

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Answered on Jun 11th, 2014 at 11:21 AM
A quit claim does not change the mortgage liability only the refinance would do that until that happens you are responsible for the mortgage. Talk with your attorney about enforcing the part if the divorce agreement that requires your ex to refi.

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Answered on Jun 11th, 2014 at 10:38 AM
This is not a family law issue; try consumer debt, real estate categories.

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John F. Brennan
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Answered on Jun 11th, 2014 at 10:37 AM
I would need the details and to review the documents.

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Answered on Jun 11th, 2014 at 10:14 AM
When you signed a quitclaim deed you gave up your ownership rights. You were not released from the Note. The modification of the mortgage probably did not add any additional obligations above and beyond the obligation already under the Note. If your ex was supposed to refinance, that is a different issue. That would have released you from the Note. I would recommend that you file a "Motion to Enforce Litigants Rights" under your divorce docket to compel a refinance, regardless of the modification if you want to be released from the Note.

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Dennis Joel Leffert
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Answered on Jun 11th, 2014 at 10:13 AM
If the default is under the new terms and you did not sign the modification. I do not think the company can hold you liable under the modification. Except, if the original agreement, you signed, had a provision giving the company the right to modify without approval. Then you may be liable. The quit claim you signed had no affect upon the note, only the title. Perhaps you should return to Court and get an Order requiring your ex to refinance under his name only.

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