what kind of lawyer do i need to get my name off a mortgage after a divorce

Full Answer

How do I get my Name off a mortgage after divorce?

A 1982 federal law helps you get your name off a home loan after divorce without having to refinance or sell the house. The process, called loan assumption, is cheaper and may also be quicker than the alternatives. Notify your lender that your ex is taking over the mortgage note due to divorce.

Who is responsible for the mortgage after a divorce?

If your ex-spouse’s name is on the deed and mortgage, they legally remain responsible for the mortgage repayment. Even a legal divorce does not change the terms of your loan.

Can I take my ex husbands name off my mortgage?

It may be possible to take a name off the mortgage without refinancing. Ask your lender about loan assumption and loan modification. Either strategy can be used to remove an ex’s name from the mortgage. But not all lenders allow assumption or loan modification, so you’ll have to negotiate with yours.

How do I refinance my mortgage after a divorce?

If you happen to have an FHA backed mortgage, the FHA streamline refinance may give you an easier way to refinance after a divorce. This refinance tool is available on loans you have had for at least six months, and also requires you to prove that you made at least six payments without your spouse’s income.

What happens if you can't pay off a mortgage?

If one of you can’t pay, the other person is still responsible for paying off the whole loan. So, if your lender simply took one of the names off the current mortgage, one of you would be getting off scot-free. As you may have guessed, lenders are not often keen on doing this.

What happens if you quitclaim a deed?

The result of filing a quitclaim deed will be the transfer of the home solely to you. The other person that was previously on the mortgage and deed surrenders all rights to the property. If you have a lawyer, they can get you the necessary form, but you can also find it with a quick online search.

Can you entrust a mortgage to one person?

However, you’re asking them to entrust the payment of your mortgage to one person instead of two, increasing their liability. Many borrowers don't realize that both people on a mortgage are responsible for the entire debt. For example, on a $300,000 loan, it’s not like both people are responsible for $150,000.

What happens if you remove your name from a loan?

If lenders remove a name, they increase their risk, and they give somebody a free “out” from paying back the loan.

What to do if your current lender doesn't help you?

Refinance the Loan. If your current lender doesn't help you, try refinancing the loan. This simply means you apply for a new loan and use that loan to pay off the old debt. The person who signs the new loan should apply individually, and they need enough income and high enough credit scores to qualify for the loan.

What is a quit claim deed?

A quitclaim deed is when the owner passes the title of a home to someone else, for legal or other reasons. This kind of deed does not remove someone's name from a mortgage; all rights of ownership are transferred, but loan contracts remain unchanged, and the person who first signed the loan still owes that debt. 10 As a result, a quitclaim deed can leave a borrower worse off than they were before—they owe money on a house, but they no longer have any claim to it as an owner.

Do lenders take risk?

Lenders are not often willing to take such a risk. Though neither party may like it, lenders see each person who signed the loan as a way to collect. You might think that it’s “our” loan, but banks protect against this idea.

Can you remove your name from a mortgage?

When you're buying a house , having a partner or another person to back the loan , and applying jointly for a mortgage makes it easier to get approved. But things change—if either you or your partner have a change of heart, or have to move for a job, or need to get free of the loan for other reasons, there are ways to remove a name from a mortgage.

Can you change the terms of a divorce contract?

1. Ex-spouses may face legal trouble for failing to follow court orders, but you can’t change the terms of a loan, which is really a contract just like a marriage contract.

Is a mortgage loan 50/50?

In most cases, each person who signed the loan is 100% responsible for the debt—it’s not 50/50 on a joint loan.

How to remove name from mortgage after separation?

Removing a name from the mortgage after separation is the best way to resolve this potential problem. Here are four ways you can do this. 1. Refinance. Refinancing the loan to just your name is effective at removing a name from the mortgage documents. However, refinancing is not something to jump into without enough thought.

What happens if you fall behind on your mortgage payments?

If you fall behind on payments, both you and your ex will face credit problems. Also, the lender has the right to go after your ex if you default on the loan. You simply don’t want to have your finances tied closely through your mortgage after a divorce. Removing a name from the mortgage after separation is the best way to resolve this potential ...

Can I refinance my mortgage without my spouse's contribution?

First, the process takes quite a bit of time. Second, you will need to prove that you can pay the mortgage on your own without your spouse’s contributions.

Can I remove my ex wife's name from my mortgage deed?

After you’ve refinanced, take care of the deed as well. You will want to remove your ex-spouse’s name from the deed once the mortgage is taken care of. A quitclaim deed is an easy way to do this.

Can I sell my house if I cannot afford my mortgage?

It also may be your only option if you cannot afford your mortgage and the home’s upkeep on your own. Selling a home, particularly when you are in the midst of divorce proceedings, can be stressful. It may be the simplest way to remove your spouse’s name and move on, but it takes time and money to do successfully.

Can I refinance my house after divorce?

Are you asking yourself, “Do I have to refinance after divorce?” the answer is no . There is one other option to keep the home and remove your spouse’s name without refinancing, and that is through loan assumption.

Can you get a mortgage if you divorce your spouse?

However, you may find that you have to “cash-out” your spouse. This means giving your ex-spouse half of the home’s equity in cash.

Who is the attorney for divorce in Virginia?

Virginia Divorce Attorney Charles Hatley. If the court ordered your ex-spouse to refinance the home and has she has failed to do so, she may be in contempt of court. So, it may be in your best interest to take her to court to force her to take your name off of the mortgage.

What happens if the court does not order a refinance in Virginia?

If the court does not order it, then you have to work with your ex-spouse to get them to refinance the home.

Can you refinance a home after divorce?

However, sometimes it is not possible to refinance. In those cases, the Court will order that the home be sold. Division of assets after divorce is very fact-specific and requires a specialized knowledge of local law.

How to remove name from mortgage loan?

Evaluate your financial situation. While this may be somewhat of an extreme option, filing for bankruptcy and receiving a bankruptcy discharge under Chapter 7 of the U.S. Bankruptcy Code can remove your name from a mortgage loan. This may be a helpful option, for instance, if you have a lot of debt and are struggling financially. If all other alternatives fail and you are otherwise eligible for bankruptcy, you should be able to discharge your liability for the mortgage loan that you hold jointly with another person.

How to remove name from mortgage without refinancing?

Although it can be difficult to remove a name from a mortgage without refinancing, it's best to start by contacting your lender to explain your situation. Depending on the circumstances, your lender may ask for information such as your financial records and a divorce decree, if you’re removing an ex-spouse’s name.

What to do if you discharge a mortgage loan in bankruptcy?

If you are able to discharge the mortgage loan in bankruptcy proceedings, you should sign a quitclaim deed to transfer your interest in the property to your co-borrower. This allows your co-borrower to sell, refinance, or otherwise dispose of the property as he or she sees fit.

How to get a mortgage loan without a co-signer?

Recruit a co-signer for your mortgage loan. If you don’t qualify for a mortgage loan on your own, you could find another person who qualifies for the loan and who is willing to co-sign it. Taking this step might convince the lender to allow you to take on the mortgage loan without your current co-borrower.

What is a novation in mortgage?

A novation or assumption simply substitutes one mortgage contract for another. The new contract removes the co-borrower from the mortgage loan altogether. You will sign the new mortgage contract. The co-borrower also normally must sign the appropriate documents in order to remove his or her name from the loan.

How to remove name from joint mortgage?

1. Contact your lender . Removing a name from a joint mortgage is not a typical request, so it is best that you contact your lender in person or by telephone rather than by email . Since your lender holds the mortgage to the home, the lender wants to be able to hold both borrowers responsible if payments are not made.

What happens if you don't make the mortgage payments agreed?

Likewise, if you fail to make the mortgage payments as agreed, your co-signer will be held responsible for the payments. Sign new mortgage documents with your new co-signer.

How to remove name from title of house?

Remove your name from the home's title via a quitclaim deed or interspousal grant deed. This removes your ownership interest in the home and makes your ex the sole owner of the home. However, it has no bearing on the home loan responsibility.

What happens if your home is underwater?

If your loan is underwater, you owe more than the home is worth. Loan assumption generally is not an option in this case, but a modification, short refinance or short sale might be. Contact your lender for eligibility requirements.

Can you get your name off a mortgage after divorce?

A 1982 federal law helps you get your name off a home loan after divorce without having to refinance or sell the house. The process, called loan assumption, is cheaper and may also be quicker than the alternatives.

Can you split your house with your ex in California?

California is a community property state; therefore, you and your ex must split all marital debts and assets. When you have a joint mortgage on a home with equity, the spouse who keeps the house also may be responsible for taking over the home loan.

Can you refinance a mortgage after death?

The act prohibits lenders from calling your loan due upon death or divorce of a spouse, as well as a few other circumstances. If your lender refuses to release you from liability, tell the lender you plan to refinance the loan with another lender to remove yourself completely from the loan. If your loan is underwater, you owe more than ...

How to remove spouse from mortgage after divorce?

When spouses divorce, they must divide their real estate. This is most often accomplished by using a quitclaim deed to remove an ex-spouse from the deed to the property. While signing a quit claim deed may release your interest in the property to your ex-spouse, it does not release you ...

What happens if my ex-husband is removed from my mortgage?

The Solution: Release or Refinance. When an ex-spouse is removed from the title to the property, he or she will usually also want to be removed from the loan. This protects the ex-spouse (and his or her credit) from responsibility if the former spouse does not make payments on time or if the mortgage is foreclosed.

What happens after a quit claim deed is filed?

After the quitclaim deed is filed, you will own the entire property and be responsible for the entire mortgage. If the mortgage is in your name and you are not keeping the property (i.e., if your ex is getting the property in the divorce, then your ex must either refinance or assume the loan.

What happens after a spouse refinances?

Refinancing creates a fresh loan in the name of only one spouse. The prior loan is paid off as part of the refinancing. After the refinancing, the ex-spouse that is no longer listed on the property and is not responsible for past due mortgage payments, liens, or other property-related debt. Issues sometimes arise when the release ...

Why do divorce papers include an indemnity clause?

Also ask whether the divorce documents included an indemnity clause to protect you from obligations of your ex-spouse. If your ex-spouse has defaulted and his or her creditors are now looking to you, this indemnity clause could allow you to take legal action against your ex for breaching his or her obligations.

Can you get a quitclaim deed on your house if your ex spouse defaults on the mortgage?

While signing a quitclaim deed may release your interest in the property to your ex-spouse, it does not release you from your mortgage. The property is still secured and the bank may foreclose on it if your ex-spouse defaults on the mortgage. This can have disastrous effects on your finances:

What happens if my ex-husband doesn't own a house?

When an ex-spouse no longer owns the property but is still listed on the mortgage, he or she is responsible for debt on the property that he or she doesn’t own. Failure to make payments could be reported to the credit bureaus and appear on that spouse’s credit report.