Replies to This Discussion

Permalink Reply by Susan Neal on July 7, 2012 at 5:21pm

It can depend on the lender. With some, I advise my buyers to wait until escrow closes, then do a quitclaim deed. The reason is that some lenders will make you start over if you make a change to the buyer. If you are that close to written approval, you might not want to upset everything. Ask your agent about all this. He or she knows your negotiator better than we can guess. Good luck!

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on July 7, 2012 at 5:23pm

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,

Permalink Reply by ElizabethWeintraub00697006LyonRE on July 8, 2012 at 4:25am

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

Permalink Reply by Donna Clayton, Broker, MBA on July 8, 2012 at 10:58am

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 !!

 

[email protected]

 

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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