How To Remove A Name From A Mortgage

EricJ · Joined: 09 Jan 2009 Posts: 321 Location: New Jersey

There have been many posts on this topic so it deserves to be up here as a "sticky".

Answer...
Once someone's name is on the mortgage, you will not be able to get it removed. The bank approved the loan based on the income of ALL borrowers. All borrowers on the mortgage are financially responsible for making the payments regardless as to what agreement the two borrowers may have with one another.

Solution...
There are two ways to have a name removed from a mortgage...
1. Refinance the loan
2. Sell the home

If someone co-signs on the mortgage, that person has the same obligation as the primary borrower. The co-signer cannot be removed from the mortgage unless one of the two solutions above occur.

READ MORE ABOUT REMOVING A NAME FROM A MORTGAGE

Josh Harmatz · Joined: 08 Sep 2009 Posts: 18

Thank You for the great information about loans

zulika · Joined: 15 May 2009 Posts: 4 Location: Cape Town

Eric is right, you can't just remove someone's name off a mortgage. You don't necessarily "officially" have to sell the house, but you could "sell" your portion of the house to the other person.

You would need to pay transfer and lawyers fees to do this, but then the property and mortgage will only be on the other person's name.

mf2mf · Joined: 30 Dec 2009 Posts: 3

What if the ORIGINAL note was in one person's name and the spouse was added to the mortgage after the marriage?

Are BOTH now responsible for the mortgage? Can the spouse who was added to the mortgage, when married, now be removed?

David · Joined: 19 May 2004 Posts: 754 Location: Atlanta, GA

mf2mf wrote: What if the ORIGINAL note was in one person's name and the spouse was added to the mortgage after the marriage?

Are BOTH now responsible for the mortgage? Can the spouse who was added to the mortgage, when married, now be removed?

It will likely involve review of the credit of the first person, and reapproval by the bank. This is probably not going to happen easily, especially since this would be a tactic used for walking away from one house, and buying another. That's not to say you shouldn't try. ;)

mf2mf · Joined: 30 Dec 2009 Posts: 3

David wrote: mf2mf wrote: What if the ORIGINAL note was in one person's name and the spouse was added to the mortgage after the marriage?

Are BOTH now responsible for the mortgage? Can the spouse who was added to the mortgage, when married, now be removed?

It will likely involve review of the credit of the first person, and reapproval by the bank. This is probably not going to happen easily, especially since this would be a tactic used for walking away from one house, and buying another. That's not to say you shouldn't try. ;)

Thanks for the reply.
After the spouse is added to the mortgage, are both now equally responsible for the mortgage or the original note has precedent?

David · Joined: 19 May 2004 Posts: 754 Location: Atlanta, GA

Definitely, I am not qualified as an attorney to provide an "official" answer, but the answer is probably "yes"; both are responsible. An attorney could look at the actual documents, and see how your wife was added. Also, maybe the mortgage was sold, after your wife was added, but this wasn't accounted for in the sale. There could be some possible loopholes. You might want to carefully read over the documents yourself, and you might get a better understanding of the considerations and possibilities.

mf2mf · Joined: 30 Dec 2009 Posts: 3

David wrote: Definitely, I am not qualified as an attorney to provide an "official" answer, but the answer is probably "yes"; both are responsible. An attorney could look at the actual documents, and see how your wife was added. Also, maybe the mortgage was sold, after your wife was added, but this wasn't accounted for in the sale. There could be some possible loopholes. You might want to carefully read over the documents yourself, and you might get a better understanding of the considerations and possibilities.

Thanks again.
As usual, the devil seems to be in "the details". :)

zulika · Joined: 15 May 2009 Posts: 4 Location: Cape Town

The only 2 ways that spouse will be able to be removed and the first is in the case of a divorce, where they agree that one will keep the property and the other person is paid out (providing that person qualifies for the loan on their own). The loan would then be re-done in the name of the one person but only after the divorce has been finalised.

The second is if they are married with a pre-nuptual agreement stating that assets held before the marriage doesn't become the joint ownership after the marriage.

heidrek · Joined: 25 Jan 2010 Posts: 7

what about assumption? When assuming a loan, the new mortgagee replaces the old one doesn't it?

JPowell · Joined: 20 Jan 2010 Posts: 103 Location: PA

I had no idea that you couldn't remove a name from a mortgage! My SOs father had asked him to sign on for a refi on his loan on a house he owns and rents - is it the same deal with that? He'd be stuck on the loan from then on?

If that's so, would his name being on that mortgage effect our ability to get a home on our own?

EricJ · Joined: 09 Jan 2009 Posts: 321 Location: New Jersey

That other loan would factor into the approval process. It would be a liability that your income would need to cover.

JPowell · Joined: 20 Jan 2010 Posts: 103 Location: PA

EricJ wrote: That other loan would factor into the approval process. It would be a liability that your income would need to cover.

Darn, that's pretty much what I assumed the case would be. I'd love to help his dad with the refi, but if that's the case we just can't afford to do it.

Anaeneina · Joined: 29 May 2010 Posts: 5 Location: Italy

Lamorenalotiene wrote:Does anyone know how to stream news from major news sites to your personal website? Is this even legal?