Posted on: 29th Mar, 2010 11:56 am
After being legally divorced, and having no responsibilities to the mortgage. Apparently refinancing has been denied to her- How can I get my name off the mortgage?
hi shbdogsled,
unless your ex-spouse is able to refinance the loan, you won't be able to remove your name from the mortgage deed. your ex-spouse can apply for a novation and check out if the lender agrees to it. novation is also one of the ways to transfer mortgage from one person to another. if your name is not removed from the mortgage docs, you would be liable for the home loan. in case of any default, the lender will be able to come after you for the dues.
take care.
unless your ex-spouse is able to refinance the loan, you won't be able to remove your name from the mortgage deed. your ex-spouse can apply for a novation and check out if the lender agrees to it. novation is also one of the ways to transfer mortgage from one person to another. if your name is not removed from the mortgage docs, you would be liable for the home loan. in case of any default, the lender will be able to come after you for the dues.
take care.
agreed...you cannot simply remove your name from a mortgage loan. once you've signed a promissory note, you've done so for the life of that loan (until it's paid in full). though common in divorce situations, the method of refinancing a home that's been split off to one party is far more difficult in this marketplace than it used to be. with shrinking equity and only one income to qualify for a new loan, the likelihood of a remaining spouse (ex-spouse) being able to refinance gets slimmer and slimmer. if and when the housing markets turn around, this will be less often the case, of course.
in the meantime, novation (an unlikely happenstance also) is the best and, apparently, only method. she's going to have to be a very strong candidate to have the loan in her own name only for the lender to assent to a novation. it's worth investigating, however, no matter what.
in the meantime, novation (an unlikely happenstance also) is the best and, apparently, only method. she's going to have to be a very strong candidate to have the loan in her own name only for the lender to assent to a novation. it's worth investigating, however, no matter what.
