Obtain lender approval
If your lender wants to, they have the power to remove someone's name from the mortgage without needing to refinance.
When you separate from your partner and have a joint mortgage, you are both liable for the mortgage until it has been paid off in full. Bear in mind that this is regardless of whether you still live in the property or not. You will need to make sure you keep up with any repayments you are legally obliged to make.
In a divorce, one spouse may use a quitclaim deed to transfer his/her interest in the property to the other, effectively removing his/her name from the title.
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.
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.
Say you've been awarded the house (or another piece of real estate) in a divorce, and want to know how to get your ex-spouse's name off of the title. The simple answer is a quitclaim deed.
A few hundred dollars if you hire an attorney to write the quit claim deed for you and all parties agree. Thousands of dollars if the divorce party does not agree and you need an attorney to work through those issues.
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.
If you talk to the mortgage company and present them with your divorce decree and a quitclaim deed, many lenders will remove you and leave the loan in your ex's name only. This is true for many lenders, including loans underwritten by government organizations. This is known as a release.
If you are married or in a civil partnership
If you are married/in a civil partnership and are not on the mortgage, you can apply for a Matrimonial Homes Rights Notice. This will give you some occupation rights but will not provide you with any ownership rights.
Removing somebody without buying out
Either way, if you have agreed to it, it can be done relatively easily. To remove a name from a mortgage, you'll need to apply for a “transfer of equity” to remove the name from the title deeds while allowing the mortgage lender to remove them.
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.
If you want to keep the house and don't have enough equity to do a cash-out refinance or the money to pay your ex their share, the solution might be a home equity line of credit (HELOC) or home equity loan.
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 joint mortgage allows multiple people to share responsibility for paying back a single loan, but it doesn't necessarily mean they will share legal ownership of the home. You can opt to share ownership, but that will involve additional actions beyond taking out the joint mortgage.
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.
The simplest approach is having them sign a quitclaim deed releasing rights to you. If uncooperative, an attorney can help file suit to force transfer or clear a deceased ex-spouse's name. Submit the new deed to be recorded. Take the signed deed to the recorder's office for the county where the property is located.
If you are asking how much it costs to have a deed drafted to transfer ownership from one person to another, then typically an attorney will charge $250-300 or so to draft up a new deed. Then there are recording fees for the deed that are normally less than $50. And any transfer taxes are typically .
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.
Does It Matter Whose Name Is on the Mortgage in a Divorce? While the name on the mortgage can influence who is responsible for the debt, it doesn't necessarily dictate how the property is divided.
Conditions that may void a quit claim deed include fraud or lack of capacity, underscoring the importance of a clear title and the grantee's awareness of existing liens.