Posted by Redline on December 18, 1998 at 13:07:47:
I’m sorry to hear about your divorce, and I’m also sorry to tell you that it doesn’t quite work that way. Perhaps if one of you bought the other out, or refinanced the property with someone else. Banks do not just remove names from mortgages because it’s not in their best interest. The more people they have on the hook the better for them.
I leave myself open to correction by the gods…
RL
Divorce and mortgage - Posted by Pat
Posted by Pat on December 18, 1998 at 10:45:36:
Hi, My wife and I are currently in the process of divorce:-(
She will be keeping the house that we have had for only a year. Anyone know what the proper way of removing my name from the mortgage would be? Thanks
Re: Divorce and mortgage - Posted by JPiper
Posted by JPiper on December 18, 1998 at 18:26:51:
As mentioned below, unless your wife can qualify alone for the mortgage, you cannot be removed from it.
In the absence of this, I would not deed the house to her unless she executed a performance mortgage to secure the property settlement. The purpose behind this mortgage would be to enable you to regain title in the event that she were unable or unwilling to pay or maintain the existing mortgage on a current basis.
All too often one party in the divorce quit claims their interest in a property to the other party without a means to protect themselves in the event that the other spouse does not make the loan payment. Discuss the above with your attorney if your wife cannot qualify for the current loan or a new loan.
JPiper
Re: Divorce and mortgage - Posted by Irwin
Posted by Irwin on December 18, 1998 at 18:16:32:
There is a common misconception that someone’s name can be “taken off” a mortgage when the property is sold, or a divorce occurs. It can’t, even by court order. As the comments below mostly indicate, your wife would have to re-mortgage in her own name and pay off the existing loan, for you to be released.
What you can do - Posted by Bud Branstetter
Posted by Bud Branstetter on December 18, 1998 at 15:54:45:
You can ask the court that the spouse be responsible for the mortgage. Then the spouse can ask the mortgage company to solely qualify for the loan. You will need to pursue this objective and even check the credit agencies that it gets reported that way. If the spouse is not able to solely qualify then you can lease/purchase the property with the intent that the tenant buyer qualify or get a new loan.
I agree with Redline… - Posted by Soapymac
Posted by Soapymac on December 18, 1998 at 13:52:34:
and there is something else you need to ponder.
Depending on your state laws, and whether or not you are in a community property state (your e-mail address doesn’t give me a clue) you MAY end up selling the house and splitting the “profits (losses)” of doing so.
Your attorney will be able to guide you through the briar patch…maybe s/he knows of a method for one of you to buy the equitable interests of the other.
The fact that you have both owned the home for “only a year” does not leave you much in the way of a creative solution, unless your equity is considerable.
Maybe, if you could give us some particulars about the home, and the financial portion also, people on the board could come up with some ideas to help you make the best of the situation.
Cordially,
Soapymac