Hello we are in Texas. My mother is planning on using Rocket Mortgage next March and doesn’t plan on paying it back. My father wants to stop her; they both own the home. I’m for sure she won’t pay it back; she’s never paid anything back EVER and she is in $60,000+ dollars in debt. So I read on their website that they only need 1 of the homeowners to go through with Rocket Mortgage. Is it possible to get a lawyer to stop this? My mother is 64, my dad is 65, and he and I don’t want her to do this because we know she won’t pay it back. This should be illegal or something like getting a loan and knowingly not paying it back. I refuse to let this happen. Sorry if I worded things wrong or anything; I’m so scared and nervous and don’t really understand all this stuff. I just 100% know for sure my mother will leave me and my father high and dry.
If your dad is co-owner of the house and is on the deed she will be required to get his permission to take out a mortgage on the home. She can attempt to do it on her own, but there will be an issue down the line when they pull the deed and see your father as co-owner. He will be required to sign it. He can refuse to sign the mortgage at that time.
Lenders can see debt and payment history. If she hasn’t paid anything back, her SSN will be flagged for non-payment. The thing that is weird is if she has that much debt and has never paid it, they usually sue and will garnish wages. If both parents’ names are on the house, she can’t solely get a loan herself for it. Both parties must sign.
@Zia
Sounds like this company is in the business of making bad mortgages in order to foreclose—essentially more a real estate company forcing leveraged hostile takeover of the property. Even if I’m wrong, they sound shady as fuck.
@Marin
Rocket is owned by Quicken, which is owned by Microsoft. They’re a legit company.
Paris said:
@Marin
Rocket is owned by Quicken, which is owned by Microsoft. They’re a legit company.
If they are lending mortgages, they are of course legit; I meant more shady as in questionable business morals and ethics.
Paris said:
@Marin
Rocket is owned by Quicken, which is owned by Microsoft. They’re a legit company.
Quicken is owned by Aquiline Capital Partners, but yeah, it is a legit company.
@Nico
I had to look; you’re right. It’s been bought and sold several times. Microsoft diverted some time back.
@Zia
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Ashton said:
@Zia
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Do you know where she is in the approval process? Lenders won’t just hand out money, and as soon as an underwriter sees her credit history, I would think they would deny approval. Even if they only need one person, which isn’t unheard of, that person still needs to be creditworthy.
@Oak
If the house is worth more than they loan her, wouldn’t it be beneficial to them to lend anyway and then just repossess the house?
Quinn said:
@Oak
If the house is worth more than they loan her, wouldn’t it be beneficial to them to lend anyway and then just repossess the house?
The house is worth more than the debt; they told her the house is worth $180,000.
@Keenan
Is she forging his name? And is she lying about not needing his signature?
Quinn said:
@Oak
If the house is worth more than they loan her, wouldn’t it be beneficial to them to lend anyway and then just repossess the house?
Repossessing a house is a time-consuming and costly process - and not something most banks want to deal with. No bank is going to lend money with the expectation of a foreclosure upfront.
Ashton said:
@Zia
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Post a link if you actually think you read that co-owners don’t need to be involved in a cash-out refinance.
Ashton said:
@Zia
[deleted]
Post a link if you actually think you read that co-owners don’t need to be involved in a cash-out refinance.
Yes, please post this. Texas is a community property state, and any lender who knows what they are doing, which Rocket Mortgage does, will require both spouses to be on the mortgage (called a deed of trust in Texas), which is the document giving the lender a lien on the property.
While it is true that one spouse has to sign the promissory note (the document establishing the loan and obligation to pay the bank back the money), the second spouse has to sign the deed of trust. This is true even if only one spouse is on the vesting deed—unless that spouse can establish the property is ‘separate property’.
Did your mom inherit this house from her parents or anyone else? Was it gifted to her by someone? Did she purchase it before she and your dad were married? If yes to any of those, she may be able to do this without his consent. But if they bought the house while they were married, she simply cannot do what you are saying you’ve read they can do.
@Riley
I just looked up on an app that shows who owns the house/property or something; it has my mom and dad’s names on it. They got the house together before I was born.
Ashton said:
@Zia
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Post a link if you actually think you read that co-owners don’t need to be involved in a cash-out refinance.
How would the law treat a co-owner (father) when the loan that he didn’t even approve goes into default? (I can’t believe this is legal.)
@Tracy
The loan isn’t going to be written, that is my point. OP is misunderstanding, but until we read what OP read and misunderstood, it is hard to clarify.
If both of their names are in the title, she can’t take out a loan against the house without his signature. If the house is only in her name, she can do whatever she wants with it.