My daughter is separated from her husband and living in my home. He is currently living in the home and plans to keep it. My daughter called the mortgage company on 4/30/2010 and advised them that she is not living in the home and ask them to make a note not to refinance or modify the loan to lower the payment because of the divorce. They said they would make a note on the account so that the mortgage would not be refinanced since she would not approve. On 5/07/2010, the company modified the loan to lower the payment without my daughter's signature. The question is: Is a mortgage company required to have the signatures of both parties on a joint loan?
Yours is the second message to me in as many weeks that suggested a mortgagee modified a joint mortgage with the signature of only one of the mortgagors.
Is this is a good business practice for the mortgagees? I do not think so. Is this wide spread? I do not think so. Is a modified mortgage with the signature of only one mortgagor a legal document? Probably, but I have not seen any court cases that focus on this issue. I hasten to add that I am not a Supreme Court justice in your state (or any other for that matter), and my opinion and $5 will get you a latte.
Ask your daughter to consult with her divorce attorney about this matter. He or she will be able to read the modified mortgage documents in person, review your daughter's state laws, and offer a more precise guess.
I encourage readers who have been a party to a one-signature joint mortgage modification to comment below.
I hope this information helps you Find. Learn & Save.