How to get someone else off of a deed or mortgage

Table of Content

• Can You Remove Someone’s Name From A Mortgage Without Refinancing
• Who can co-sign a loan?
• Getting an FHA or VA Streamline Refinance
• Q. So, the Refinancing Needs a Full-Blown Approval Process?
• Warning: A Quitclaim Deed Does NOT Take Your Name Off the Mortgage
• How do I find out if my co-signed loan is defaulted?

If you don't have the financial clout to refinance alone, you might be able to enlist a wealthy relative as a co-signer. If your quest to remove one name from a joint mortgage stems from a divorce, be sure you understand just how little that impacts your lender. Even if the court order specifies that one spouse gets the house and the other gets off the mortgage, this only controls the actions of the two parties. It does not mandate that the lender alter a private contract involving the two of you.

If you later want to remove the new co-signer from the joint mortgage loan, you will end up in the same situation that you are now. Likewise, if you fail to make the mortgage payments as agreed, your co-signer will be held responsible for the payments. The person staying on the loan typically has to submit pay stubs, tax returns, and bank statements to prove their financial situation. If they can, the lender should give you the release of liability.

Can You Remove Someone’s Name From A Mortgage Without Refinancing

This will leave your co-borrower with sole liability for the loan. If you’re unlucky, your mortgage lender can sue you for the difference between the foreclosure sale proceeds and the loan balance. Submit documentation to the lender proving the financial status of the person staying on the mortgage.

Plus, as long as the person who is not living in the home carries a load of mortgage debt, it will be hard for that person to qualify for other loans. And what if the person who keeps the home runs into financial stress and delays payments without the lender’s permission? The other person’s credit will be tied up in the problem. Of the options listed, a release of liability or a loan assumption are the cheapest, because they avoid the closing costs that come with refinancing. If you don’t have any luck with the methods above, you might need to sell the house and use the sales proceeds to pay off the loan. Selling a house that carries a lot of debt with it can be tough, and the struggle can disrupt you and your loved ones.

Who can co-sign a loan?

You are entitled to use or get the value from your portion of the real estate. A partition action allows you to do just this, even if your co-borrower insists on keeping the property. In fact, your co-borrower has the right to purchase the property from the partition sale. This allows you to get off the mortgage and give up any interest in the property while allowing your co-owner to remain the property. The note is the document that states the terms of the loan.

Therefore, a lender may be reluctant to remove one borrower's name from the loan. While this process, commonly referred to as an assumption or a novation, is not common, some lenders do allow it with respect to certain types of mortgage loans. For instance, FHA and VA loans commonly have provisions that allow assumptions. To qualify for a refinance loan, you’ll need to show the lender you have a strong enough credit history and enough monthly income to make mortgage payments on your own.

Getting an FHA or VA Streamline Refinance

You and your former co-borrower will need to sign a new deed that transfers interest in the property to you and your new co-signer. The deed may need to be recorded at various government offices, depending on the laws of your state. If your mortgage contract does not permit an assumption, there is nothing that you can do to change it. If you refinance to remove the borrower, the title company will remove the spouse’s name from the deed for you. You usually do this by filing a quitclaim deed, in which your ex-spouse gives up all rights to the property.

Understandably, they hesitate to let anyone off the hook. But you really don’t know what options the lender could offer until you call and ask about your loan and the way your circumstances have changed. If you don’t qualify for a mortgage loan on your own, you could find another person who qualifies for the loan and who is willing to co-sign it. Taking this step might convince the lender to allow you to take on the mortgage loan without your current co-borrower. Your co-signer should have a strong credit history and sufficient income to qualify for the loan. Loan modification allows you to change the terms of your mortgage loan without refinancing.

This is an opportunity to address both issues through one transaction. If your former co-borrower faithfully repays the mortgage servicer, great. But if that person one day stops paying, your good credit will be at stake. Eventually, the lender will ask you to pay off the balance. So, if you agree to transfer title to your co-owner, or are directed to do so by a judge, get off the mortgage. Refinancing does not end the extra co-borrower’s ownership.

This is process is similar to that of the original loan approval process. Again, the new lender may be leery of a refinance only by a co-borrower, especially if the remaining co-borrow may not be able to make payments on the loan. The first way to remove yourself from a mortgage is to ask your lender to remove you from the loan.

If youve agreed that you get to keep the house, a verbal agreement isnt enough. If your ex-spouses name is on the deed and mortgage, they legally remain responsible for the mortgage repayment. Even a legal divorce does not change the terms of your loan. If you fall behind on payments, both you and your ex will face credit problems. Selling may be the way ahead for separating partners if the party who wants to stay cannot qualify for the loan.

My family has problems with real-estate and we have to hire an attorney to help solving our problems. Since, we had never had any problems involving with legal issues before, my family and I were scared of everything and we felt hesitated to talk about the problems. However, we have to hire an attorney and we found Talko Law Film. Talko Law Film assigned Nick Moss to work on my wife's case.

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Like anything in life, financial and living situations often change and with those changes come new obstacles to overcome. Now that you have the knowledge and resources to tackle one of these obstacles, hopefully the other changes happening will become a little easier to bear. To learn more about mortgages and what your options are, visit rocketmortgage.com. Your ex should sign thequitclaim deed in front of a notary. One this document is notarized, you fileit with the county. This publicly removes the former partners name from theproperty deed and the mortgage.

How do I find out if my co-signed loan is defaulted?

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