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refinance or not

Posted on: 11th Apr, 2010 08:52 pm
my son and wife purchased a home and property, divorced and in the property settlement agreement my son retained the house and property (she didn't want it). however her name is still on the loan and wants him to get it refinanced to remove her name from the loan. does he have to refinance the property?
Hi wanda,

Your son would have to refinance the property to remove his wife's name from the mortgage. Till the time he refinances, her name would remain on the loan and she will be held responsible for the mortgage. Thus, if he has taken the ownership of the property, he should also take over the responsibility of the mortgage and release his wife of the liability.
Posted on: 11th Apr, 2010 10:56 pm
refinance is the only way in which to eliminate another party's obligation on the existing mortgage. novation is a thing of the past, i believe we've agreed.
Posted on: 12th Apr, 2010 10:12 am
REefinance is probabaly necessary. Never hurts to call the 800 telphone number of the current lender and ask if there is any other way.
It does not matter what we say. What matters is what the lender says may be possible.
We are responding to your question as to what we believ to be true, that being you need to refinance. Only your lender knows the terms of your loan and what is possible and what is not.
If it is an FHA loan, he may be able to assume it.
Posted on: 13th Apr, 2010 10:18 am
well said, john; we all need reminders periodically to let us know that we aren't the be-all and end-all of advisors.
Posted on: 14th Apr, 2010 10:23 am
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