Q: Can a loan forbearance affect removing co-borrower from mortgage?

A: The unilateral forbearance action taken without your knowledge may constitute a material breach of your co-borrower agreement, potentially creating grounds for legal remedy. Mortgage contracts typically require all borrowers' consent for modifications affecting repayment terms, making this unauthorized forbearance a possible violation of both your interpersonal agreement and the underlying mortgage contract. However, this breach alone does not automatically trigger a unilateral right to remove the other party from the loan, as mortgage removal generally requires either refinancing or a formal assumption process approved by the lender, regardless of contractual violations between co-borrowers.

Your immediate steps should include documenting the unauthorized forbearance by requesting written confirmation from the mortgage servicer regarding when it was initiated, who requested it, and what representations were made about co-borrower consent. This documentation establishes the factual basis for any subsequent legal action while simultaneously alerting the mortgage company to the communication breakdown between co-borrowers. The forbearance itself may impact your creditworthiness despite your lack of consent, making prompt written notification to both the credit bureaus and mortgage servicer essential to protect your credit profile.

We recommend simultaneously pursuing two paths forward: first, contacting the mortgage servicer's loss mitigation department to inquire about their specific requirements for removing a co-borrower, typically involving either refinancing in your name alone or a formal assumption process; second, consulting with a real estate attorney to review your co-borrower agreement for specific provisions addressing unauthorized actions and potential remedies. The unauthorized forbearance likely strengthens your position in negotiations with both the co-borrower and potentially the lender, particularly if the forbearance terms were misrepresented or if the agreement contains provisions requiring mutual consent for loan modifications.