How To Remove A Name From A Joint Mortgage
Your lender is unlikely to remove your name from the loan voluntarily. The lender wants as many people “on the hook” for the mortgage as possible. The fact that you owe more on the home than it is worth makes it even less likely that the lender would voluntarily remove your name from the note, as the lack of equity increases the probability that you and your ex-husband will default on the mortgage. Even though your ex-husband may have every intention of keeping the loan current, the lender will want as many people as possible liable for the loan so that it has a higher chance of collecting on any deficiency balance that results in case of default and foreclosure.
While your current lender may not be willing to refinance your loan, you may be able to find another bank willing to lend you the funds needed to refinance. Finding a loan in today’s market can be difficult, especially if your ex-husband has had any credit problems in the past; his credit is what’s important since he is the one who will be applying for the refinance loan. However, you should definitely contact various lenders to discuss your situation and find out what options, if any, they can offer you.
It is unlikely that you will find a lender willing to lend you more than the home is worth; since you are upside-down on your current mortgage, you may need a large down payment available in order to obtain a refinance loan. In addition, you will need to carefully compare the terms of your current loan with those of any refinance offered to make sure that the new terms are competitive with those of your previous loan. To learn more about refinance loans, I encourage you to visit the Bills.com home refinance page.
As I mentioned, finding an affordable refinance loan may be an uphill battle given the current state of the U.S. economy and housing market. Barring your current lender agreeing to voluntarily remove your name from your and your ex-husband’s current loan, the best thing for you to do may be to leave your name on the mortgage for the time being. Once the housing market recovers from its current depressed state, your home’s value should increase, hopefully providing you with enough equity to refinance the home at a more favorable rate without the need of a large down payment. If your ex-husband makes his payments on time each month, having your name on the mortgage could also improve your credit rating, allowing you to begin establishing your own credit accounts and thus building credit independent of your ex-husband.
There is no clear solution beyond a refinance loan, which may be out of reach at this point. Even if you are not able to remove you name from the loan, this mortgage should not cause you any problems as long as your ex-husband continues making the monthly payments on time.
I hope this information helps you Find. Learn & Save.