You can not ``get your name off the mortgage''. You may get some relief in the divorce process-such as an order for him to pay the mortgage or an order to sell the property. However, nothing done in the divorce case will affect the rights of the mortgage company to hold you responsible.
No, you cannot remove someone from the mortgage without refinancing.
Even after a separation, it's important that both you and your ex-partner continue to make your joint mortgage repayments until you've decided what to do. Regardless of whether you're both living at the property, you're still liable for the debt. When you have a joint mortgage, you become financially linked.
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.
You can either follow the legal procedures that apply in your state—typically this means the court will order the property to be sold, and the net proceeds (after paying mortgages, liens, and costs of sale) to be divided—or you can reach your own compromise settlement.
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.
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.
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 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.
One of the most common ways to get your name off the mortgage after divorce is to have your ex-spouse refinance the mortgage. This means, essentially, taking out a new mortgage and using those funds to pay off the old mortgage balance.
Potential Sanctions: You may request sanctions such as full control of the sale, statutory interest on your share, attorney fees, or even a jail term to encourage compliance. Drawbacks of Contempt Motions: These motions require multiple hearings and can take months to resolve.
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 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.
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.
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.
No Court can order the mortgage lender to remove a party. Someone needs to refinance and remove them. The private loan terms are not subject to your divorce order.
Unless you're assuming a mortgage privately from someone you already have a close relationship with, you'll likely go through underwriting to transfer financial responsibility. The seller's lender will put you through an approval process that requires documentation and information typical of a mortgage application.
Breaking a fixed mortgage will see a lender levy a penalty worth three months' interest or a calculation called the interest rate differential (IRD), whichever is higher. When rates are falling, the IRD is more likely to come into play.
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.
Unmarried couples do not go through divorce like married couples do if they split. As long as unmarried partners can agree on how to divvy up any assets, there's generally no need for lawyers or courts.
A “Buyout” is when the buying spouse pays the other for their share in the value of the home or mortgage. It is important to understand that a buyout must be agreed upon and cannot be forced. Calculating a house buyout requires the buying spouse to: Evaluate the current market value.