Removing a co-borrower from your current loan is possible in most situations. Refinancing your auto loan can help to accomplish this, though there are several steps that must be taken to ensure it is possible.
But if your circumstances change over time or your credit score improves and you would like to remove the co-signer from your loan, there are three primary options. You can refinance, get a co-signer release or pay off the loan.
Refinancing the loan: If you want to remove a cosigner from your car loan, you may be able to refinance the loan in your name so it becomes your responsibility alone. For example, if you've recently gone through a divorce and your ex-spouse is a cosigner on your loan, you could refinance the loan in your name only.
To get your name off of someone's car loan you have the option to request a co-signer release. Selling or trading in the vehicle is another way to remove a co-signer from a car loan. If these aren't options, you can ask them to refinance the loan without you.
It is important to note, however, that a co-borrower has equal ownership in the vehicle. Be sure that you and your co-borrower understand and agree to any terms before applying. If your co-borrower ever wants to remove themselves from the loan, you must refinance again to remove them from your policy.
Removing a co-borrower from your current loan is possible in most situations. Refinancing your auto loan can help to accomplish this, though there are several steps that must be taken to ensure it is possible.
There are two ways to remove an ex-spouse from a loan: Release and refinance. A lender may release the ex-spouse from the loan. If presented with a divorce decree and a quitclaim deed, many lenders will remove the ex-spouse and leave the loan in the name of one spouse only.
If you both decide you want the mortgage to be transferred to one person, you do this through a legal process known as a 'transfer of equity'. A transfer of equity is when you transfer a joint mortgage to one of the owners, or to a new person.
File a motion for contempt: You can file a motion with the court that handled your divorce to enforce the terms of the divorce decree. This may involve requesting that your ex-wife be held in contempt of court for failing to comply with the order to refinance the home or obtain a new loan.
Removing a cosigner or co-borrower from a mortgage almost always requires paying off the loan in full or refinancing by getting a new loan in your own name. Under rare circumstances, though, the lender may allow you to take over an existing mortgage from your other signer.
If the lender won't change the existing loan, your co-borrower will need to refinance the home into a new mortgage. Does it cost to remove a name from a mortgage? Yes. Refinancing to remove a name requires closing costs, typically ranging from 2% to 5% of the loan balance.
Since the borrower and co-borrower are equally responsible for the mortgage payments and both may have a claim to the property, the simple answer is that it likely doesn't matter. In most cases, a co-borrower is simply someone who appears on the loan documents in addition to the borrower.
A co-borrower is any additional borrower whose name appears on loan documents and whose income and credit history are used to qualify for the loan. Under this arrangement, all parties involved have an obligation to repay the loan. For mortgages, the names of applicable co-borrowers also appear on the property's title.
Generally, co-borrowers share the title of the home. But this isn't always the case since the loan and the title are separate. Be aware that if you're a co-borrower and your name isn't on the title, you'll still be responsible for paying off the mortgage – but won't have the right to use the house.
Apply For A Loan Assumption
This is one of the easiest ways of removing someone from a mortgage. All you need to do is notify your lender that you will now be the only one listed on the mortgage and that you wish to apply for a loan assumption.
You will want to remove your ex-spouse's name from the deed once the mortgage is taken care of. A quitclaim deed is an easy way to do this. This is a simple legal document filed with the county that gives you full rights to the property and removes the co-owner's name.
The short answer is yes, you can transfer your mortgage to another person, but only under certain circumstances. To find out if your mortgage is transferable, assumable or assignable, contact your lender and ask.
Removing a name from your mortgage: Can it be done without refinancing? Yes, it is possible to take sole responsibility for a home that you're currently sharing without refinancing, even if your ex-spouse or another co-borrower or cosigner is currently on the mortgage.
A refinance is one way to remove someone's name from the mortgage. This protects the spouse who no longer has ownership interest in the home. It can be an important step if that spouse plans to purchase a house after the divorce and take on a new mortgage.
Even if one person doesn't want to or can't pay the mortgage, both people are likely still on the hook for the debt. The lender can often come after either person for the full amount of the existing mortgage, no matter who is named on the mortgage.
Equal rights: The co-borrower has equal rights to the car as the primary borrower. This means the co-owner must be involved in the sale or transfer of the car. Insurance: Even if the co-owner doesn't use the car, they will likely need to be on the insurance policy. This can mean higher costs for both involved.
Refinancing is the only way to remove a co-borrower from an auto loan. However, if you want to get your name off the car loan, your ex needs to qualify for refinancing and prove they can afford the payment on their own.
If the borrower forged your signature, or if they committed fraud to enforce you to sign the loan contract, you can sue both the lender and the primary borrower to have your name removed. However, you'll need unquestionable proof that you did not willingly consent to cosign the loan.