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mike r Asked:

my wife purchased a home through a nonconventional loan prior to our marrige in 2007 basically the hight of the market, mortgage and deed both in her name only. Due to the economy we have gotten behind a bit on the mortgage which has caused her some credit issues, my credit is still good. We wanted to refiance but were told my name had to be listed on the deed before they could do this for us. We filed the paper work to list me 45 days ago and have just found out today they will not refinance with us because we have lost so much equity in the house, upside down almost 50,000. Being this far behind we are almost ready to just let it go or possibly try a short sale and start over again with something much smaller and more affordable. will i no longer qualify for an FHA loan in my name now because of the deed status, and also if this is the case is there a way to reverse it, kinda like a nullification period where it has only been 45 days since the addition of my name? any answer or advice is greatly appreciated, thank you [New Bedford MA]



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Answer Provided by: Preston Kenney [07/07/2009]

Now that you are on title, you could potentially refinance under new programs that just came out which allow you to refinance a 1st mortgage balance up to 125% of the current home value. If that is not an option, then you and your wife can record a new deed to take you off of title although this may not be necessary since you are not a party on the Note and therefore are not obligated, although this is more of a legal question that should be asked of an attorney. As long as your credit is not affected, you can still qualify for an FHA loan.