You cannot simply remove your name from a joint car loan, but there are options. For example, the co-borrower can refinance the loan as a solo borrower.
Your best option to get your name off a large cosigned loan is to have the person who's using the money refinance the loan without your name on the new loan. Another option is to help the borrower improve their credit history. You can ask the person using the money to make extra payments to pay off the loan faster.
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.
Some lenders have a release option for co-signers, according to the Consumer Financial Protection Bureau. A release can be obtained after a certain number of on-time payments and a credit check of the original borrower to determine whether they are now creditworthy.
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.
Essentially, when multiple names are on a mortgage, you can tell your lender that you will be taking over the mortgage completely. You can request that they provide you with a loan assumption, which gives one party the full responsibility of the mortgage and removes the other from all the documents.
To get a co-signer release you will first need to contact your lender. After contacting them you can request the release — if the lender offers it. This is just paperwork that removes the co-signer from the loan and places you, the primary borrower, as the sole borrower on the loan.
Being removed as a cosigner from a loan could potentially hurt your credit scores. How much your scores are impacted depends on the details of your credit profile.
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.
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.
Normally, a cosigner will have to stay on the mortgage for a minimum of one year. From my experience, normally a cosigner will stay on a mortgage for several years. When the borrower is ready to have the cosigner removed, they contact the lender to then re-qualify without the cosigner.
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.
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.
You cannot take your spouse's name off the joint account without his or her permission.
Lenders can consider the credit scores of both borrowers when co-signing an auto loan. If you have a lower credit score, having a co-signer with a higher score could work in your favor. In terms of which credit-scoring model is used for approvals, that can vary by lender.
Having a co-signer on the loan will help the primary borrower build their credit score (as long as they continue to make on-time payments). It could also help the co-signer build their credit score and credit history, if the primary borrower makes on-time payments throughout the course of the loan.
If you're the primary borrower on a debt, your cosigner can take you to court for: Recovery of money paid: they can sue you to recover the money they've paid towards the loan. Fraud: they can sue you if you signed their name to the loan without their permission.
A cosigner has no title or ownership in the property secured for the loan. Additionally, a cosigner has no legal right to occupy a home as a primary or secondary residence, unlike the primary signer/borrower.
You may be wondering if you can go about removing a cosigner from a car loan, and the answer is yes, you can. Often, you can simply contact your lender to get a cosigner released, but sometimes it can be more complicated.
Second, a co-signed loan will appear on the co-signer's credit reports. The co-signer's credit scores may be positively or negatively impacted by the borrower's credit behavior. Co-signing for someone is a significant commitment.
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.
The Bottom Line
If your name and your ex-spouse's name remain on a mortgage after you divorce, your marriage may be over, but your financial responsibility isn't. As long as both names are on the mortgage, the lender holds both of you responsible for the debt.
The ownership is determined by who is on the title. If your name is on the mortgage, but NOT on the title, you do NOT own the property. So, NO. If you do not own the home, you can not sell the home.