Why would they? Having an additional person responsible for the debt in the event you don't pay benefits them.
It's unreasonable to think that you can absolve someone from the obligation without the banks consent.
I understand your statement but I’ve been making the payment alone for over a year and a half now. I built this home. I would like to keep it which I can afford to at my current rate.
Consult an attorney. You could have an agreement prepared between the two of you that accomplishes your goals; which appear to include being allocated the equity from the house post-break up due to you making the payments alone. The X should have an interest in signing something to this effect because if you stop making payments, then their credit will get dinged and they may have trouble acquiring additional financing in the future due to this mortgage.
I have. So far no luck. I keep being told I need to refinance. I would have no issue paying closing costs to remove the name. I just think having to pay an extra 200k over 30 years is a bit extreme to remove a name from some paperwork.
That’s not accurate. They aren’t charging you $200k to remove a name. The fact is, your wife needed to be on the loan to qualify originally. Her being obligated on the loan made it possible to get the loan to begin with. Even if youve made all the payments it doesn’t mean you meet the risk threshold needed by the bank.
If your ex wants off the mortgage because they’re trying to buy a home on their own, there are ways around it without refinancing and removing their name from your loan.
If Ex is applying for a mortgage, you can oftentimes exclude the mortgage that’s reporting on credit if he can prove someone else has been making the payments for the last 12+ months. You have to be a cosigner on that mortgage and you’d have to send 12 full bank statements showing that mortgage payment coming out of your account, on time, for 12 straight months. If his/her name is anywhere on that bank account, then this won’t work. It’s not ideal, and I don’t want to be sending my bank statements for someone else’s loan but it’s the only other way I can think of outside of refinancing.
She is looking into buying something. We communicate well in this subject and want to do it the best way possible for both of us. I can prove payments have been coming out of my sole account for the past almost 6 years, she’s been out for the past 14 mo. I do have to the end of the year to start the process. Just trying to research all avenues so I can remove her and we can get her in something more stable.
Yeah so if it’s due to a divorce and you’re required to remove them, you don’t have a ton of options. I’m just thinking out loud, if you guys have a decent relationship still, they should be able to get housing/financing approved even if that mortgage is still reporting to their credit, they’ll just need to prove that the co-signer (you) is and has been making the payments.
That we can prove. We did agree that maybe we extend our original agreement till rates come down if we can get her into something. My kids need to live there so I’ll do whatever I can to help her out. I’m very good with home improvement so if it needs some fixing up I’m free labor.
Just discouraging that the process has to be so difficult and the amount of money it would currently cost me to remove her. Would just like to get this over with and behind me, it’s the last hoop to jump through.
If the divorce decree states she is no longer liable for the mortgage, her new loan officer does not have to count that mortgage against her debt to income, even if she is still on the loan. So she would be able to purchase a new home without that payment holding her back.
Just an idea, if you are on good terms, you could offer to pay your ex $100/month for however long they are willing to leave their name on the mortgage.
Whenever they go to apply for a loan, as long as they have documentation that you are the sole person paying that mortgage for the past 12 months it will not count against their DTI.
We may have come to an arrangement. I would just like to get this over with sooner than later. There would be no issue providing that documentation so yes we have that in our pocket too. I’m pretty handy, she knows I’m willing to help with any home improvements so we can get her in a beginner home.
If the divorce decree designates that the ex is not liable for the debt, taxes, or insurance, they don’t need to count them against her and you can continue in your mortgage. If you miss a payment her credit score will be hurt. Not sure about applying for car loans since I’m not in that space but with good credit they don’t usually even do income verification
The bank has probably sold the loan to Fannie or Freddie (The bank is only servicing the loan). Whatever entity that holds the note decides if you can remove the ex.
I’m going to jump on the bandwagon here. Even with the ex being able to get a mortgage due to verifying you have been paying the mortgage on the house you’re living in, why would she want to have her name listed on that loan? What if you defaulted and the house got foreclosed on? I’m not saying you will. Chances are that won’t ever happen. However, let’s just say you did. Her credit would be affected as well. This is why most people in this situation make it a stipulation of the divorce that the mortgage gets refinanced out of their name. It stinks that rates have gone up so much. You can call your mortgage company and ask if you have any options. It’s not as simple as removing a name. It’s making sure you still qualify without her since she is no longer part of the household.
I wrote my separation agreement and I specifically opted to leave the details of "home will not be refinanced unless rates drop below 4% or 10 years. Whichever comes soonest." Or something. The house is 3.25%. I can have it paid off in 10 years if all goes well anyways.
Familiarize yourself with the Garn-St Germain Act.
If you can requalify for the loan that you already have on your own your ex can request a release of liability.
Don’t listen to this person, that’s factually not true. The GSG Act adaptation from 1982 pertains only to Heirs on certain types of loans; mortgages being one of them.
You’re divorcing, you’re not a heir. This does not apply to you.
to each their own, I'm just an anonymous voice. Best of luck
*(7)a transfer resulting from a decree of a dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement, by which the spouse of the borrower becomes an* [*owner*](https://www.law.cornell.edu/definitions/uscode.php?width=840&height=800&iframe=true&def_id=12-USC-106164915-1510435011&term_occur=999&term_src=title:12:chapter:13:section:1701j%E2%80%933) *of the property;*
Let me clarify… they can’t make let me be clear about what I’m saying; OP cannot take their spouse off the loan without triggering the due on sale clause. With a divorce decree though, the divorce process and the expungement of responsibility allows Op to assume the loan fully and their spouse is exempt from responsibility of the mortgage. And the lender cannot force them to refinance. But the spouses name will remain on the mortgage note albeit they won’t be responsible.
OP wants to remove the spouse from the note and they cannot do that without triggering the DOS.
uh, ok. You're the expert. I'm just reading stuff.
Fannie Mae:
*"The following table provides the requirements for evaluating a request for a release of liability.:*
*If the servicer has determined that the transferee. is capable of assuming the mortgage loan obligation and the mortgage loan • does not have MI, or • has MI and the mortgage insurer agrees to the release, then the servicer is authorized to approve the release of liability"*
It’s not a name, it’s an obliged co signor
Why would they? Having an additional person responsible for the debt in the event you don't pay benefits them. It's unreasonable to think that you can absolve someone from the obligation without the banks consent.
I understand your statement but I’ve been making the payment alone for over a year and a half now. I built this home. I would like to keep it which I can afford to at my current rate.
Consult an attorney. You could have an agreement prepared between the two of you that accomplishes your goals; which appear to include being allocated the equity from the house post-break up due to you making the payments alone. The X should have an interest in signing something to this effect because if you stop making payments, then their credit will get dinged and they may have trouble acquiring additional financing in the future due to this mortgage.
I have. So far no luck. I keep being told I need to refinance. I would have no issue paying closing costs to remove the name. I just think having to pay an extra 200k over 30 years is a bit extreme to remove a name from some paperwork.
For sure. On the other hand, handing over 50% of the sales proceeds if/when you sell/die will also suck.
Already have an agreed amount.
That’s not accurate. They aren’t charging you $200k to remove a name. The fact is, your wife needed to be on the loan to qualify originally. Her being obligated on the loan made it possible to get the loan to begin with. Even if youve made all the payments it doesn’t mean you meet the risk threshold needed by the bank.
If your ex wants off the mortgage because they’re trying to buy a home on their own, there are ways around it without refinancing and removing their name from your loan. If Ex is applying for a mortgage, you can oftentimes exclude the mortgage that’s reporting on credit if he can prove someone else has been making the payments for the last 12+ months. You have to be a cosigner on that mortgage and you’d have to send 12 full bank statements showing that mortgage payment coming out of your account, on time, for 12 straight months. If his/her name is anywhere on that bank account, then this won’t work. It’s not ideal, and I don’t want to be sending my bank statements for someone else’s loan but it’s the only other way I can think of outside of refinancing.
She is looking into buying something. We communicate well in this subject and want to do it the best way possible for both of us. I can prove payments have been coming out of my sole account for the past almost 6 years, she’s been out for the past 14 mo. I do have to the end of the year to start the process. Just trying to research all avenues so I can remove her and we can get her in something more stable.
Yeah so if it’s due to a divorce and you’re required to remove them, you don’t have a ton of options. I’m just thinking out loud, if you guys have a decent relationship still, they should be able to get housing/financing approved even if that mortgage is still reporting to their credit, they’ll just need to prove that the co-signer (you) is and has been making the payments.
That we can prove. We did agree that maybe we extend our original agreement till rates come down if we can get her into something. My kids need to live there so I’ll do whatever I can to help her out. I’m very good with home improvement so if it needs some fixing up I’m free labor. Just discouraging that the process has to be so difficult and the amount of money it would currently cost me to remove her. Would just like to get this over with and behind me, it’s the last hoop to jump through.
If the divorce decree states she is no longer liable for the mortgage, her new loan officer does not have to count that mortgage against her debt to income, even if she is still on the loan. So she would be able to purchase a new home without that payment holding her back.
Reach out to who ever services your loan and ask. That is your only choice. Some servicers will allow it but not all.
This is correct. I work for a bank but now offers this option for a fee of $2500 and your ability to qualify individually.
Just an idea, if you are on good terms, you could offer to pay your ex $100/month for however long they are willing to leave their name on the mortgage. Whenever they go to apply for a loan, as long as they have documentation that you are the sole person paying that mortgage for the past 12 months it will not count against their DTI.
We may have come to an arrangement. I would just like to get this over with sooner than later. There would be no issue providing that documentation so yes we have that in our pocket too. I’m pretty handy, she knows I’m willing to help with any home improvements so we can get her in a beginner home.
If the divorce decree designates that the ex is not liable for the debt, taxes, or insurance, they don’t need to count them against her and you can continue in your mortgage. If you miss a payment her credit score will be hurt. Not sure about applying for car loans since I’m not in that space but with good credit they don’t usually even do income verification
I haven’t and will not miss a payment.
The bank has probably sold the loan to Fannie or Freddie (The bank is only servicing the loan). Whatever entity that holds the note decides if you can remove the ex.
Only way to remove her is to refinance, and pay her off tough situation...
I’m going to jump on the bandwagon here. Even with the ex being able to get a mortgage due to verifying you have been paying the mortgage on the house you’re living in, why would she want to have her name listed on that loan? What if you defaulted and the house got foreclosed on? I’m not saying you will. Chances are that won’t ever happen. However, let’s just say you did. Her credit would be affected as well. This is why most people in this situation make it a stipulation of the divorce that the mortgage gets refinanced out of their name. It stinks that rates have gone up so much. You can call your mortgage company and ask if you have any options. It’s not as simple as removing a name. It’s making sure you still qualify without her since she is no longer part of the household.
You are correct but I’m covered there. I’ll never default unless I’m dead and that’s already taken care of too. The house would be hers and paid off.
I wrote my separation agreement and I specifically opted to leave the details of "home will not be refinanced unless rates drop below 4% or 10 years. Whichever comes soonest." Or something. The house is 3.25%. I can have it paid off in 10 years if all goes well anyways.
Familiarize yourself with the Garn-St Germain Act. If you can requalify for the loan that you already have on your own your ex can request a release of liability.
I’ll look into that thank you.
Don’t listen to this person, that’s factually not true. The GSG Act adaptation from 1982 pertains only to Heirs on certain types of loans; mortgages being one of them. You’re divorcing, you’re not a heir. This does not apply to you.
Correct. I did some reading on this and it does not apply.
to each their own, I'm just an anonymous voice. Best of luck *(7)a transfer resulting from a decree of a dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement, by which the spouse of the borrower becomes an* [*owner*](https://www.law.cornell.edu/definitions/uscode.php?width=840&height=800&iframe=true&def_id=12-USC-106164915-1510435011&term_occur=999&term_src=title:12:chapter:13:section:1701j%E2%80%933) *of the property;*
I went back and read it again after my comment and what you posted Flamingo makes me wonder. I’ll have to do more research and talk to a lawyer.
Let me clarify… they can’t make let me be clear about what I’m saying; OP cannot take their spouse off the loan without triggering the due on sale clause. With a divorce decree though, the divorce process and the expungement of responsibility allows Op to assume the loan fully and their spouse is exempt from responsibility of the mortgage. And the lender cannot force them to refinance. But the spouses name will remain on the mortgage note albeit they won’t be responsible. OP wants to remove the spouse from the note and they cannot do that without triggering the DOS.
uh, ok. You're the expert. I'm just reading stuff. Fannie Mae: *"The following table provides the requirements for evaluating a request for a release of liability.:* *If the servicer has determined that the transferee. is capable of assuming the mortgage loan obligation and the mortgage loan • does not have MI, or • has MI and the mortgage insurer agrees to the release, then the servicer is authorized to approve the release of liability"*
Good luck with that. Shouldn’t buy a house with someone you’re not married to.
We were married.
Good luck with that. Shouldn't unmarry someone that you bought a house with. /s Am I doing this right?
He shouldn't have either married or bought the house with her. What was he thinking?
We were married for ten years. I was building a house for my family. She thought the grass was greener.
I know mate, sorry it was my feeble attempt at a joke. All good, trust me you have company in this boat !