why would a buyer want one name removed from a sales contract days before closing

[luckydriver]

after 3 months of 'thing's a friends house is set to close monday. 2 doctors are buying it. now they want one of the names removed from the sales contract because they will be in mexico. they werent going to be at the settlement anyway so i think that sounds shady. plus if they cannot qualify with just one income then wouldnt that be a legit reason to back out of the contract?  

[luckydriver]

crisis apparently averted. they buyers were told/assumed that that need not be at settlement (they both do volunteer work in mexico). however apparently the wife will be in mexico the date of settlement and they since have discovered they are required to be at settlement, only the husband will be there and thus he wanted her name removed from the contract /mortgage/deed. friend asked for, and received. confirmation from fulton bank that husband alone qualifies for the mortgage...also the rate lock expires soon so they def want this done. they said they will add wife later. but that their issue, not my friends lol. 

 

feel free to delete the thread. home selling is stressful even when you arent the one selling! 

[hegemony]

we had that happened when a couple was divorcing (apparently broke up after they were under contract).

 

[8ball]

I have had this happen a time or two with contracts I've written. The usual culprit is one spouse has a blemished credit report and the other spouse can qualify on their own. The mortgage broker wants to avoid a hassle with underwriting so they remove the blemished spouse, who can still be on the deed, just not on the loan. 

[centex]

With the reference to doctors, never discount the prospect of some patient threatening litigation...if the name is on the mortgage and title, it becomes a potential asset. 

[hegemony]

3 hours ago, centex said:

With the reference to doctors, never discount the prospect of some patient threatening litigation...if the name is on the mortgage and title, it becomes a potential asset. 

would be moot in a CP state though, right?

[liverichly]

On 10/25/2022 at 12:08 PM, luckydriver said:

crisis apparently averted. they buyers were told/assumed that that need not be at settlement (they both do volunteer work in mexico). however apparently the wife will be in mexico the date of settlement and they since have discovered they are required to be at settlement, only the husband will be there and thus he wanted her name removed from the contract /mortgage/deed. friend asked for, and received. confirmation from fulton bank that husband alone qualifies for the mortgage...also the rate lock expires soon so they def want this done. they said they will add wife later. but that their issue, not my friends lol. 

 

feel free to delete the thread. home selling is stressful even when you arent the one selling! 

 

Sounds like this was a logistics issue, not so much a qualifying issue.  When buying a home usually you can have the attending borrower on the loan, assuming it's a family member, sign the closing documents on behalf of the non-attending borrower by getting a Power of Attorney (POA).  The POA needs to be reviewed & approved by the title company and lender prior to closing.  The seller can also use a POA and a buyer buying with cash can also use a POA, it can save quite the hassle.