Can a company modify a loan without both borrowers' consent? 17 Answers as of June 19, 2014

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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Elhart & Horvath, P.C.
Elhart & Horvath, P.C. | Mattias Johnson
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.
Answer Applies to: Michigan
Replied: 6/19/2014
James T. Weiner & Associates, P.C.
James T. Weiner & Associates, P.C. | James T. Weiner
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!
Answer Applies to: Michigan
Replied: 6/16/2014
Stephens Gourley & Bywater | David A. Stephens
Generally a loan cannot be modified without the consent of both borrowers.
Answer Applies to: Nevada
Replied: 6/12/2014
Law Office of Linda K. Frieder
Law Office of Linda K. Frieder | Linda K. Frieder, Esq.
You signed a quit claim which means you have no right to the property. Therefore a loan can be modified without your consent.
Answer Applies to: California
Replied: 6/11/2014
Law Offices of Helene Ellenbogen, P.S.H | Helene Ellenbogen
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.
Answer Applies to: Washington
Replied: 6/11/2014
    Fran Brochstein
    Fran Brochstein | Fran Brochstein
    If your name is on the mortgage then you are responsible for its payment. A quit claim deed is probably not sufficient. Giving him a quit claim deed means that you are not interested in owing the property. It does not, however, remove your name from the mortgage. Only a mortgage company can remove your name from liability. If your ex can agree to re-finance the house but if no one will give him a mortgage then there is nothing you can do. You might want to consult with a real estate attorney in your state.
    Answer Applies to: Texas
    Replied: 6/11/2014
    Edelman, Combs, Latturner & Goodwin, LLC | Daniel A. Edelman
    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.
    Answer Applies to: Illinois
    Replied: 6/11/2014
    Provda Law Firm
    Provda Law Firm | Bruce Provda
    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.
    Answer Applies to: New York
    Replied: 6/11/2014
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    I would need the details and to review the documents.
    Answer Applies to: Michigan
    Replied: 6/11/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    The quitclaim deed only transfers title, and once you transfer title then only one borrower needs to sign the modification. If you originally signed the note then you are still liable unless you file a Chapter 7 bankruptcy.
    Answer Applies to: New York
    Replied: 6/11/2014
    Law Office of Robert E McCall | Robert McCall
    This is not a family law issue; try consumer debt, real estate categories.
    Answer Applies to: Florida
    Replied: 6/11/2014
    Mediation Services of Southwest Florida
    Mediation Services of Southwest Florida | Dennis J. Leffert, J.D.
    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.
    Answer Applies to: Florida
    Replied: 6/11/2014
    Mark S Cherry, Attorney at Law, PC
    Mark S Cherry, Attorney at Law, PC | Mark Cherry
    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.
    Answer Applies to: New Jersey
    Replied: 6/11/2014
    Shalvoy Law, LLC | Walter A. Shalvoy Jr.
    What does your separation agreement state, if this was incorporated by reference then it is an order of the court. You should have stated in that your husband had a certain amount to time to refinance and buy you out. If that is the case, then he is in contempt of the court, take him back and make him conform.
    Answer Applies to: Connecticut
    Replied: 6/11/2014
    Meister & McCracken Law Firm, PLLC | Joanne M. McCracken
    Most mortgage contracts are written with language that allows modification. Your question relates to specific terms in the contract that would need to be reviewed before an accurate response to your question could be prepared. You should consult an attorney for an accurate response.
    Answer Applies to: Arkansas
    Replied: 6/11/2014
    Kirby G. Moss PC | Kirby G. Moss
    If the mortgage company agreed to do it, it's legal though you may have an argument you are no longer bound by it.
    Answer Applies to: Indiana
    Replied: 6/11/2014
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