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refinance if co-borrower had bankruptcy 6 yrs ago, and has since walked away from the home

I purchased the home with my former partner about 8yrs ago. She filed chapter 7 6 yrs ago. Last June, she walked away from the home. I have paid all the payments on time and have excellent credit. We have a 10-1 Arm due to end in 2014, and a home equity line of credit also. I have tried to refinance several times, in my name only, only to be told by Wells Fargo that I cannot EVER refinance because she had the bankruptcy. I would have a quit claim deed done to remove her from the title. IF it wasn't my bankruptcy, why can't I get a new loan? Could I get a different loan if I did a loan assumption? That seems crazy to me! by jillza_530_782 from St. Paul, Minnesota. Aug 16th 2012 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

You need to seek out a local mortgage broker, and ditch your current lender.. They are clueless.. if you were both on the loan, and she filed BK, but did not include the home, then you should be ok.. if she has since walked away from the home, then that's ok too.. So long as she is willing to sign it over to you.. The lender might require you show that you have made the payments on your own for at least the past 12 months.. if you have been making the payments, all along, then you can get her removed from the loan and refinance.. this is assuming your in negative equity position and your loan is owned by Freddie or Fannie and qualifies under the HARP 2.0 program.. if you have equity of 20% or more, then you can refinance with or without HARP 2.0.. The best advice I can give you is to contact a LOCAL mortgage broker, not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Aug 16th 2012
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,791 contributions

Another story of someone told something wrong by an unlicensed bank application clerk. You have potential options. You need to speak with a licensed loan officer like myself. Click my name to the right for more information. I am right here in St Paul, MN

Aug 16th 2012
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Travis Torcoletti (travis.torcoletti)
#0 ranked lender in South Carolina - 372 contributions

The person at WF who told you that is wrong...typical though for someone at a large bank with no knowlege to speak out of turn sadly. The bankruptcy was not yours and therefore does not affect you. So long as you are able to qualify for a new loan on your own, meaning good credit, income, low debt ratio etc, then you can certain refinance in your name only. The trick will be that you are going to have to get your former partner to sign off at closing if she is still on title, no way around that. Contact a local mortgage broker to help you with the refinance and a real estate atty about getting her off title. Good luck.

Aug 16th 2012
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Jeremy Redlinger (JeremyR)
#29 ranked lender in Minnesota - 191 contributions

Of course you can refinance your loan. As long as your Debt to Income ratio is within guidelines, your credit is up to par and you have a stable employment history you can take advantage of today's historic low rates. If you are interested I can shoot your information over to 40 different lenders and get answers to your specific scenario, just shoot me an email at jeremyr@newhomemortgagemn.com.

Aug 16th 2012
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Enter your answer here It's me-the ? asker again!She did include the loans on her bankruptcy without my knowledge. Because of this, Wells Fargo has said I can never refinance, even in my name only. They seem willing to do a loan assumption, but from my research, that idea doesn't sit well with me. I have worked with an outside person, but she could never get a response from Wells Fargo about a re-subordination on the line of credit. My ex is willing to sign a quit claim deed if I refinance. I have qualified for a Harp, but was told that the line of credit can't be included on the loan. I am so confused, frustrated, and angry. I also don't have a ton of money to hire a real estate attorney right now. I am beginning to trust no one regarding this matter. I really need to work with a loan officer in my area. Someone with some balls, if you know what I mean!

Aug 16th 2012
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Derick Condron (rightstartoregon)
#31 ranked lender in Oregon - 598 contributions

If you are trying to remove the former partner you will need to have a complete underwrite of the file but that persons BK should have no effect on you or your approval. Even if you do some kind of streamlined program and leave the partner on the loan unless there have been major problems with their credit post BK you should be fine

Aug 16th 2012
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