Hi,
I am a buyer for a property on short sale. My offer was submitted the seller and accepted and now we are waiting for approval letter from the Bank. The offer was submitted through the equator system in February 2012. The Sellers agent informed my agent that the short sale is approved and letter will be issued soon.
My problem is this, I signed the contract as a single buyer and now I am see things happening at my place of work and I don't know if I will be part of downsizing or I will retain my job. On that note I wanted to add my husband to the contract so that if I lose my job and a get a contract work, we still have constant income to convince the lender to approve our loan.
Is it possible to add a spouse on the contract at this time when the approval letter is almost being issued? My agent said this is a deal breaker. Does anyone have a different opinion or any suggestion? We really like the house and we don't want to walk away. Any advice?, Please….
Thanks,
Tags:
NIkki,
The MOST important issue is not how to add your husband onto the contract BUT rather can you afford the new mortgage if you lose your job and do not get another? Also, you said ".... I wanted to add my husband to the contract so that if I lose my job and a get a contract work, we still have constant income to convince the lender to approve our loan." If you are not telling your new lender the entire story, you may be participating in "Fraud for Housing".
1) Be Truthful
2) Be Careful
3) Leave the emotion out of it. You may love this house, but if your employment situation is that shaky, you might be better off waiting until your situation is more stable and buying a different house at that time.
Best of luck,
You're between a rock and a hard spot. If you add your husband to the contract, the approval letter does not apply to you anymore. The bank's approval letter typically names the buyer. If you are 2 buyers and not one buyer at that point, you need to go back to the bank and get a new letter naming 2 buyers.
Do not change buyers in the middle of a short sale if you can help it. Some banks won't reissue a letter but most of them will providing you are willing to wait for the new letter. A new letter can take a week or it can take 2 months.
If you do a quitclaim deed at closing, you are adding a person "subject to" the existing loan. Most loans contain an alienation clause that allow for acceleration of the loan. Seek legal advice if that's the path you choose.
Elizabeth Weintraub
Broker-Associate #00697006
Lyon Real Estate's #1 Short Sale Agent for 2011
I had the exact same situation arise with a Bank of America Fannie Mae short sale (handled through equator). Per our negotiator's advice, here's what we did. We waited until after the Approval Letter was issued and the file was moved to the Closing Department. Once the file reached the Closing Officer, we submitted the change adding the husband's name. The Closing Officer then forwarded a new approval letter including the husband's name. Below is a copy of the message I received from the negotiator. So no need to fret and feel free to share this information with your agent !!
12/23/11
to me
Message Inserted (12/23/2011 11:36 AM) On: 1 HILL TER, UNION NJ.
Message Inserted (12/23/2011 11:36 AM) On: 1 HILL TER, UNION NJ 07083.
Hi,
The husband can be added once the file is in Closing. Please do not add him to the Addendum.
Thank you
*If possible, you should reply to this note through the Bank of America Short Sale System so your reply is delivered correctly and tracked. To reply, log in to the Bank of America Short Sale System and go to the Messages section.
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