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How to get out of a mortgage?

Posted on: 21st Nov, 2008 09:32 am
i would really love some help with this one... my boyfriend has been paying $800/month on a house that he previously bought with an ex-girlfriend. he used his va loan and i believe she got a loan too for the house. he says that since his name is on the mortgage and loan, that he has to continue to pay the $800 until she can refinance and get his name off. he doesn't want to mess up his credit or loan for future use one day, which i can understand. but the thing is, he hasn't even lived there in months! is there any way to get his name off the mortgage and save his va loan? he really can not afford to keep paying on a home he doesn't even live in, the ex is actually living there. i don't see how he would be trapped into paying for something he isn't using. please help!
hi sjm!

welcome to forums!

he will have to make his ex-girlfriend refinance the loan so that he can come out of the obligation of paying the loan. if her credit is not good, then there are various methods to improve credit which she can use.

or else, there is another process which your boyfriend can use. it is known as novation which is also a way to transfer mortgage. but lenders do not agree to it easily. he can still check with the lender if that is possible in his case.

feel free to ask if you have further queries.

sussane
Posted on: 21st Nov, 2008 06:57 pm
Hi,

As your husband's name is on the mortgage deed he is liable to pay that loan until his ex girlfriend refinance the loan. However, the lender needs to be informed about the refinance as the lender will decide about the refinance after checking the credit score and the source of income.
Now the second option is to go for novation. Novation is a legal process of transferring a loan to some other person and thereby make him/her free from the liabilities of the loan. However, it has to be approved by the lender. You can also consult with a good lawyer to know if there are other options.
All the best.
Posted on: 05th May, 2010 02:58 pm
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