How to Remove a Name from a Mortgage Without Refinancing

Step-by-Step Guide

1. 1

   Step 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.
   
   Therefore, a lender may be reluctant to remove one borrower's name from the loan.
   
   While this process, commonly referred to as an assumption or a novation, is not common, some lenders do allow it with respect to certain types of mortgage loans.
   
   For instance, FHA and VA loans commonly have provisions that allow assumptions., This financial documentation must show that you have the ability to be responsible for the mortgage loan.
   
   For instance, you should provide your lender with your recent income tax returns, pay stubs, and bank statements.
   
   You have to prove to the bank that you have the money to make the mortgage payments every month on your own. , Your credit report is a good source of proof of your ability to make the mortgage payments.
   
   Your lender always considers a person’s credit history in evaluating his or her eligibility for a loan.
   
   Credit history also can affect other factors about your mortgage loan, such as the interest rate.
   
   This information will help the bank decide if you are eligible for a mortgage loan on your own., People often want to remove the name of an ex-spouse from a joint mortgage loan, pursuant to their divorce decree.
   
   If this is the case, some lenders will require proof of a properly executed divorce decree in order to process the assumption. , While assumptions used to be more widespread, they are now are commonly limited to certain types of mortgage loans, including FHA loans, USDA loans, VA loans, and adjustable rate mortgage (ARM) loans that are still in their adjustable period.
   
   If your loan does not qualify for an assumption due to the nature of the loan, or there is no provision for assumption in the mortgage contract, you may not be eligible to remove a co-borrower's name from this process.
   
   If your mortgage contract does not permit an assumption, there is nothing that you can do to change it.
   
   You signed the contract and are bound by its terms. , 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., Once you have signed the new mortgage contract, there is another important step to take.
   
   You need to legally remove the co-borrower's name from the deed to the property.By executing a quitclaim deed, you and the co-borrower can transfer the property to you alone.
   
   You may wish to contact an attorney so that your deed contains all of the required information.
   
   Depending on your state’s laws, you may need to take the new deed to various government offices for recording.
2. 2

   Step 2: Provide your lender with your personal financial information.

3. 3

   Step 3: Use your credit report.

4. 4

   Step 4: Provide your lender with your divorce decree

5. 5

   Step 5: if applicable.

6. 6

   Step 6: Ensure that your mortgage loan qualifies for an assumption.

7. 7

   Step 7: Sign a mortgage novation or assumption with your lender.

8. 8

   Step 8: Sign a new deed.

Detailed Guide

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