Borrowers on Loan But Not on Title and BofA - Need help
Has anyone ran across this situation? I have a short sale where there are multiple borrowers on the loan but some are not on title and BofA is insisting that all borrowers sign all contract documents and that they are all on HUD. Per title, in order for them to all be on HUD they have to be on title. Of course, one borrower does not want to be added back on title for tax reasons (and because they have been off title for 5 years or more).
My clients contacted a couple of short sale negotiators that say that BofA has not required this on their files. However, I tweeted and the above was the response I got. Has anyone gotten an exception on this? Who granted the exception? I would imagine that this would come up on divorces often where someone was removed from title but not the loan. This is not a divorce but a similar situation where someone would not want to be put back on title just for a short sale.
Any help would be appreciated.
(805) 878-9879
Replies to This Discussion
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Permalink Reply by Alan Remigio on
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Get another title company or attorney. Loan contract is between BofA and borrowers regardless of property ownership. There may be more to this since a borrower is very reluctant to get involved. Unfortunately, quit claims or selling of one's interest in the property (such as a subject to) doesn't absolve that person's responsibility to the lender unless the lender agrees in writing. You need a more experienced title company to intervene. The HUD is actually an important part of the paper trail and would benefit that borrower. Have another title company or attorney look at it. There's a lot of "subject to's" (borrower is no longer property owner) being negotiated as short sales. I am not an attorney, but there is HUD language for your situation.
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Permalink Reply by Sara Mehrpouyan Los Angeles CDPE on
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B of A wants everyone's names on the HUD and they put all names on the short sale approval letter but I think that's about all there is to it. I don't think that you have to add them to the title.
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Permalink Reply by joe beauchamp on
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The only semi-intelligent reason that BOA would demand that all names be on title is to protect against someone coming back after the sale and suing BOA for selling "his" house w/o him signing off. This is probably a disconnect between legal and a semi-brain-dead negotiator. BOA wants me to "own" a property or they won't do a short sale for it? Stupid or what? So I suspect that a quit claim would be sufficient for any (absurd) legal concern.
I'd suggest a quit claim, include team lead and manager since your negotiator is probably a clone incapable of handling a slightly different situation. If that goes nowhere, try tweeting bofa_help, people say that works. Then call the office of the president, then in desperation call the investor. Beyond that, well, I think it requires clergy. ;-)
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