QUESTION
Will the mortgage bank remove one name off the loan?
Asked on Nov 07th, 2013 on Divorce - Michigan
More details to this question:
If I have a joint loan and want to wave all rights to the property because one wants to separate (we are in a common law marriage for 9 years), will the mortgage bank remove one name off the loan? What kind of legal document do I need or other options? He just want to give me if I get his name from loan.
6 ANSWERS
4 Awards
Normally a bank or other lender won't simply "remove" a borrower-or co-borrower's name from a loan without new security of some kind. Usually the person remaining in the home must be able to refinance in their own name in order to "remove" someone's name from the mortgage debt. You may be able to do this; talk to your original lender and others about refinancing. Depending on the credit market and your creditworthiness, you may be able to do so.
Answered on Nov 12th, 2013 at 1:08 PM
Medical Malpractice Attorney serving Clermont, FL
at
Joanna Mitchell & Associates, P.A.
Update Your Profile
That is an issue that you need to take up with the mortgage company. In most circumstances, the only way to remove your name from the mortgage is for the house to either be sold or refinanced. Do not sign a quit claim deed while your name is still on the mortgage, as that will mean that you are still responsible for the loan, but will have no legal interest in the home itself. You should consult with an attorney before signing anything.
Answered on Nov 12th, 2013 at 1:08 PM
Commercial Contracts Attorney serving Boise, ID
at
Peters Law, PLLC
Update Your Profile
Probably not. Until paid, the bank will want to have both people on the hook to pay the debt.
Answered on Nov 12th, 2013 at 1:07 PM
No. A refinance Will be required to get your name off the loan.
Answered on Nov 12th, 2013 at 1:06 PM
Estate Planning Attorney serving Seattle, WA
at
Law Offices of Scott K. Wilson
Update Your Profile
The only way one person can be removed from a joint loan is for the loan to be refinanced paid off and a new loan taken out. The remaining person would get a quit claim deed from the departing person at the time the new loan paid off the existing loan.
Answered on Nov 12th, 2013 at 1:05 PM
Business Law Attorney serving Bingham Farms, MI
at
James T. Weiner, P.C.
Update Your Profile
No, most likely the mortgage company will not remove your name from the loan. The primary way to remove your name from the loan is to refinance the loan.
Answered on Nov 12th, 2013 at 12:56 PM