A joint mortgage can be transferred to one person, providing your lender agrees to it - they will need to assess your income and expenditure to see if you meet their affordability requirements.
Obtain lender approval
If your lender wants to, they have the power to remove someone's name from the mortgage without needing to refinance.
You will need to ask your mortgage lender to remove your ex. If they decline, you'll need to refinance the mortgage in your own name to get the ex off right away. Note that even if a divorce court decree gives you the house (and the mortgage that comes with it), that the lender is unaffected by the divorce/judgment.
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.
Separating might mean you're no longer romantically linked with your partner, but if there's a joint mortgage with both your names on it then you're still financially linked. Fail to keep up with repayments of a joint mortgage, and there could be serious knock-on effects for both of you.
Yes, removing a name from a mortgage typically incurs costs. Refinancing usually requires closing costs of 2-5% of the loan balance, while a loan assumption may cost around 1% plus processing fees. Loan modification costs vary by lender.
You'll typically only be able to transfer your mortgage if your mortgage is assumable, and most conventional loans aren't. Some exceptions, such as the death of a borrower, may allow for the assumption of a conventional loan. If you don't have an assumable mortgage, refinancing may be a possible option to pursue.
If you're able to assume the mortgage, the lender might agree to release your spouse from the mortgage, so that you assume full responsibility for the loan. But you should know that most lenders won't do this.
You can take over someone else's mortgage using an assumable mortgage. Assumable mortgages are a great way to get into a home if you're looking to buy or sell, or even just do some property flipping.
The price to eliminate names from deeds is contingent on many factors like where you live, the legal fees, and the difficulty of the procedure. Generally, it could vary from one hundred to a few thousand dollars. If both parties agree on the removal and there are no legal complications, the cost might be lower.
You can take legal action against them for breaching the agreement you both made or seek a court order to force the sale of the property. It's important to consult with a lawyer to understand your legal rights and options and to make the best decisions for your situation.
A mortgage can technically be transferred to one person via refinance. For this to happen, you'll need to refinance to a sole ownership loan or – if your partner won't agree to that – use a cash-out refinance that will give them their equity in exchange for the title of the house.
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.
Legal Remedies When Refinancing Isn't Feasible
If the spouse who wishes to keep the home cannot successfully refinance it after the divorce, several legal remedies and options may come into play: Sell the Home: One option is to sell the marital home and divide the proceeds as agreed upon in the divorce settlement.
Sometimes the equity distribution can be unequal, depending on the joint parties' agreement between them. So, to remove a name or name from a joint mortgage and transfer it to a single person, you need to apply for an equity transfer and get the name(s) removed from the title deeds.
Adding a person to your mortgage without refinancing can only work if the mortgage is assumable. Federal Housing Administration (FHA) loans tend to be assumable, but other types may not be.
Bank of America Wells Fargo Chase U.S. Bank PNC Bank First Republic Bank Capital One Quicken Loans Mortgage Porting is the process of transferring your existing mortgage from one property to another. This allows you to keep your current interest rate, term, and other terms and conditions when you move.
Typically, removing a name from a mortgage could require you to pay off the loan in full or refinance it with a new loan. But, there are alternatives where you can take over the loan without paying off it off or refinancing. These could include mortgage assumption, loan modification and bankruptcy.
Removing a name from a mortgage is a very similar process to remortgaging. You'll need to let your existing mortgage lender know the changes you're planning so that they can carry out calculations, ensuring you can afford to meet their lender criteria and monthly payments.
The lender of the original mortgage must approve the mortgage assumption before the deal can be signed off on by either party. The homebuyer must apply for the assumable loan and meet the lender's requirements, such as having sufficient assets and being creditworthy.
An easy solution is for one of the parties to quitclaim their interest to the other. Often, the price for transfer consideration doesn't even have to be monetary. The party receiving the quitclaim can agree to refinance the property into their own name, getting the party leaving the home completely off the mortgage.
However, in a community property state (like California) – and even some states without community property laws – a home purchased during the marriage is considered marital property, regardless of whose name appears on the deed.
Because California is a community property state, if the couple bought the house while they were married, they both have an ownership stake in it, and neither can compel the other to leave.