Posted on: 20th Mar, 2008 10:43 pm
what exactly is a novation? i have been divorced for about 3 years and just recently found out that my name has never been removed from a mortgage loan. i am the co-buyer on that loan. my ex makes the mortgage payment. i want to remove my name from the loan but i know that he cannot afford to refinance right now. what do i need to do?
i recognize novation as a legal concept that allows for the replacement of one obligation to perform with a new obligation to perform; or that replaces a party to an agreement with a new party.
it is clear that the novation must be agreed to by all parties to the transaction; so if the lender you noted was not in agreement, the novation could not take place; if your former spouse was not in agreement, the novation could not take place.
as for me, specifically; i had never heard of the term until joining this forum...and i had never thought the such a concept was used in the mortgage/lending industry (having worked for banks, etc. for virtually my entire adult life).
i hope this is helpful.
it is clear that the novation must be agreed to by all parties to the transaction; so if the lender you noted was not in agreement, the novation could not take place; if your former spouse was not in agreement, the novation could not take place.
as for me, specifically; i had never heard of the term until joining this forum...and i had never thought the such a concept was used in the mortgage/lending industry (having worked for banks, etc. for virtually my entire adult life).
i hope this is helpful.
Hi,
Welcome to the forum.
George has given you sound info and I agree with him that all the parties will have to agree for novation. So is your ex willing to take the mortgage on his name only? If so then talk to the lender and see if he can approve him for the novation.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
George has given you sound info and I agree with him that all the parties will have to agree for novation. So is your ex willing to take the mortgage on his name only? If so then talk to the lender and see if he can approve him for the novation.
Feel free to ask if you have any further questions.
Best of luck,
Larry
