Posted on: 11th May, 2010 08:32 am
a friend of mine recently got divorced and needs to have his ex wife's name removed from the home equity loan. the first mortgage is in his name only, but the second is in both. the problem is that the value of the home is now about (20k) less than the two loans combined so he's unable to qualify for refinace on that home equity loan to remove her name & responsibility. is there any way around this? the second loan is approx. 50k, first is 209k and the value of the home is approx. 240k
not really. the lender has every right to require both parties stay on the mortgage to ensure they have the ability to recover in the event of a default. you could talk to the bank about removing the other persons name but they'd be unlikely to do so.