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removing a co-borrower from a mortgage loan

Posted on: 30th Aug, 2006 01:59 am
I have a big problem
I own three multi-family houses.. the first house, my uncle helped me buy it because I couldn't qualify for the loan myself. It is almost 4 years now. He was trying to buy a house a month ago, and the lender told him that he has a house under him and he don't qualify for another loan. My question is, is there anyway I can remove him from the mortgage without refinancing. Currently I have a 5.5 30 year fix on the mortgage, and I don't want to lose the rate nor refinance.
Hi,

Your uncle's name can be removed from the mortgage. But for that, you will have to request the lender. It is up to him as to whether he will allow you to take a co-borrower's name off the loan.

Thanks,

Sara.
Posted on: 30th Aug, 2006 02:17 am
I have already contact my lender Washington Mutual and they sent me an assumption package.. now, I have checked my loan and it says that the loan is not assumable. is there anyway around? would the bank allow it, even though is not assumable?
some of the papers are confused to me, because I just want to remove him from the loan, and it asked me like if I was applying for a loan or something. I have asked for help on the branch and nobody knows. is there a place where I could go to help me with the application?
Posted on: 30th Aug, 2006 02:24 am
Hi kelvin,

I have even heard that a lender can remove co-borrower's name from the loan only after a certain number of payments have been done at regular intervals.
Posted on: 30th Aug, 2006 02:25 am
Hi Kelvin,

I think you should show all the loan papers to a mortgage attorney and take his advice on this issue. It is better that you clarify all your doubts regarding the legal papers and then sign the papers to get the loan amount.

Thanks,

Caron.
Posted on: 30th Aug, 2006 03:01 am
Generally, it is difficult to remove a co-borrower's name from the loan, as the person is equally responsible for the entire loan balance. There are cases where the court may decide that a co-borrower is no longer responsible for the loan. Then the primary borrower thinks of refinancing the existing loan in order to remove the co-borrower.

hope this can help.
Posted on: 30th Aug, 2006 05:35 am
What happens to a mortgage loan if the co -borrower dies on a fixed rate contract. Would I have to re-apply
Posted on: 01st Oct, 2008 10:18 am
what impact if any if the deceased co-borrowers name remained on the mortgage contract.
Posted on: 01st Oct, 2008 11:11 am
rosa]...as long as you continue to make mortgage payments as stipulated in your promissory note, you won't run into any difficulties.


mary...a coborrower's name stays on a mortgage contract whether deceased or not, until such time as the loan is paid in full. in other words, there is no impact.]
Posted on: 01st Oct, 2008 01:06 pm
bad form above - i meant to put mary's name in bold and the text in standard type
Posted on: 01st Oct, 2008 01:06 pm
It is up to your uncle, ask him first.
Posted on: 13th Oct, 2008 12:32 am
My exhusband and I are divorced. He lives in the house that was once occupied by us. I have gave him the home, but he can not get it refianced to remove my name. Is there any way to have my name removed with out refiancing?
Posted on: 04th Mar, 2009 06:04 am
renee, there is a process called novation that you can attempt with the lender. essentially, if the lender feels safe in keeping your former spouse as the only borrower and eliminating you, they might see fit to release you from liability.

the only other method for removal of your name is the refinance route.
Posted on: 04th Mar, 2009 07:48 am
Hi I bought a house with my parents 3 months ago, the only reason I was added to the loan was that my dad makes cash money and the lender couldnt grant him a loan so my parents aske dme to be added to teh loan as I make documented money. I am getting married in 6 month and would like to be removed from the loan , any advice on the process?
Posted on: 06th Apr, 2009 08:08 pm
Hi

Your parents need to refinance the mortgage in their names to remove yours from it. You can also do a Novation to take your name off the loan. However, the lender's approval is required for that which is why I think you should contact your lender and discuss this with them.
Posted on: 07th Apr, 2009 05:04 am
What if the lender doesn't accept this? Should I refinnace? look for another lender?
Posted on: 07th Apr, 2009 08:50 am
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