Names on Mortgage but not Financially Reponsible

[LuvsTrucks2]

LS, does anyone know if you can remove someone from being financially responsible on the mortgage even though their name is on it? STBXH has agreed for me to take over the house but I don't want to refinance because the rates are higher now and I don't want to start the clock all over again as far as the number of remaining years left for the pay off.

 

We have pretty much agreed to how we want things to go but have not sought out legal advice yet. We hope to file the divorce papers ourselves and not use an attorney. I know many divorce attorney's will do a free consultation, but will they really tell me/us what we want to know up front and how to go about it?

[CarrieT]

Lawyer up and don't take anyone's advice that isn't qualified in such matters.

 

I doubt you can do what you want in such a simple matter; my husband and I tried with a simple car loan -- he agreed that he would get the car and the debt associated with it.

 

Well, three years later - when he stopped making payments - *I* got sued for the loan. I had to pay tens of thousands of dollars of the loan and the associated legal fees when my ExH reneged because we didn't divide up everything legally and properly, through the courts.

[ConstantVoyager]

Your stbxh can quitclaim the house over to you.

[carhill]

LS, does anyone know if you can remove someone from being financially responsible on the mortgage even though their name is on it?

 

Yes, contact your mortgage servicer regarding their process, or have your attorney do same.

 

My dad and I have both owned mortgages (Deeds of Trust here in Cali) and any requests for removal from financial responsibility necessarily must be approved by the mortgage holder or their legal agent of care. What I would do is run a credit check and financial background on the party wishing to remain on the loan and, if they qualify on their own, instruct the change in documents and the DOT, usually for a processing fee, generally under a few hundred dollars, releasing the other party(s) from liability. If your loan is with an institutional lender or has been sold into Fannie Mae or Freddie Mac, YMMV.

 

Note that the loan/DOT/mortgage are separate from the recorded deed, in that one can indeed quitclaim their interest in the property via deed but still be held legally liable for the loan. Details vary by jurisdiction.

 

My exW and I had a couple of residences which we had to resolve during our D process. Fortunately we had arranged to own them separately (as far as loan qualification and issuing went) so no loan modifications were required. However, there were some sticky points regarding the lender requiring a quit claim of community property, relevant to transmutation issues, and a later class action lawsuit (not by us) resolved those issues. Overall, pretty painless. However, I did have legal advice during the process. Good luck.

[LuvsTrucks2]

Thanks everyone, I will take advantage of the attorney consultation and in the meantime contact my lender.

 

CarrieT, did you and your husband verbally agree or was it written in your divorce paper work?

[CarrieT]

CarrieT, did you and your husband verbally agree or was it written in your divorce paper work?

 

We had a written agreement - but it was not formally recognized in court by our creditors so it was not legally binding.

 

All it enabled me to do was sue my Ex for what had been garnished from me - and that was getting blood from a rock.

[LuvsTrucks2]

CarrieT, thanks for the information.

[2sunny]

Your stbxh can quitclaim the house over to you.

 

This alters the deed/title on the home but has nothing to do with the loan.

[LuvsTrucks2]

2sun, CarrieT and carhill,

 

If I am going to revert back to my maiden name, should I contact the lender and see if they will do an assumption, then once the divorce ink is dry, contact a title company to do the quitclaim so that everything can be done once in my maiden name? I'm not sure which step should be done first. I hate to start and then have to do another title change due to reverting back to my maiden name.

[TheBladeRunner]

I would ask a lawyer how it all works. Saving the penny now (on a lawyer) could lead to spending a buck later if you get what I mean.

 

I was on the house, but not on the loan. In the end we "quick-claimed" me off and it was no big deal. Had we decided that I take over the house, I would have had to qualify for the loan according to the lien holder (mortgage company).

[LuvsTrucks2]

TheBlade,

 

Thanks for the post. I guess I will arrange a preliminary meeting with an attorney and go from there. I don't think qualifying for the loan will be an issue but I was hoping to do an assumption instead of a re-finance, didn't want a higher rate and to start the clock all over. Right now I'm in a holding pattern with the STBXH.

[Philosoraptor]

It would be up to your mortgage company in the end, as they may need to do a salary check to verify that you can afford to maintain the payments on your own.

 

I had a quitclaim with my ex. It was nice and easy once I submitted a court order for her to start paying half the mortgage if she wanted to continue to be on the loan... how quickly it was signed and she was out of my house/life.

[Monodare1]

I'm in a similar situation, I jointly own a house with me soon to be ex partner. I moved back to my fathers and my mother in law and her two other kids (my wife's younger siblings) moved in to my house. The mother in law is currently in officially paying my half of the mortgage as I think it would be unfair on me to pay my half if I'm not living there with no intention of moving back. The wife is trying to get my name and financial responsibility removed from the mortgage and asked the mortgage provider to see if this can be facilitated. I'm keen for this to happen so I can move on and maybe straighten my credit out and get a place of my own. Living with my dad is fine but for my benefit and my little boys, I feel it would be better in the long run.