Users' questions

How can I remove my divorce partner from my mortgage?

How can I remove my divorce partner from my mortgage?

Refinancing After Divorce There are two ways to remove a divorced partner from a mortgage: obtaining a release of liability from the lender or refinancing the mortgage. A release from liability is easier, but counts on the lender granting permission.

What do you need to know about divorce and mortgage?

The agreement is a blueprint for how your split will occur, including what you’ll do with jointly owned real estate and debt associated with it. If one partner keeps the real estate, the other needs to sign a quitclaim deed transferring the title to that person. Once the deed is filed, the divorced couple need to resolve the mortgage.

Can a mortgage be transferred after a divorce?

Transferring the existing mortgage to the spouse keeping the house might be the easiest way to settle the housing issue. Usually a lender will want copies of the divorce decree and a properly executed and filed quitclaim deed in order to transfer the mortgage. Taking over a mortgage is called a mortgage assumption.

Do you have to refinance your mortgage after a divorce?

Do I Have to Refinance After a Divorce? Refinancing after a divorce isn’t required. Many couples decide that neither of them can afford the home and choose to sell it. Their lender might also allow the partner keeping the house to assume the mortgage, relieving the other partner from obligation. Divorcing couples sometimes reach other agreements.

What should I know about divorce and mortgage?

The answers to the divorce and mortgage questions below can help you be aware of your options concerning the family home and who will be held liable for the monthly payments.

Can a mortgage be modified after a divorce?

If a financial hardship as a result of the divorce was the cause of the missed payments, relief could be found in a mortgage modification. Lenders are often reluctant to release a responsible party from the loan and they will want to evidence that the remaining borrower can repay the loan on his or her own.

Who is liable for mortgage payments in a divorce?

Both parties remain on the loan and liable for the payment. This requires specific language in the divorce agreement about who will make the mortgage payments each month. Maybe your agreement will state that your former partner will pay the mortgage, even though you and your children will be the ones living in the home.

Can You get Your Name off the mortgage in a divorce?

Brette’s Answer: You can’t get your name off the mortgage. The deed is completely separate. The only thing you could do is get your divorce decree modified to include and discuss this asset. With that, your spouse could become financially responsible for the mortgage and required to indemnify you for costs.