How can I have my name removed from a mortgage?
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How can I have my name removed from a mortgage?
My husband purchased our home a few months prior to marriage. My name was not included. During the marriage he refinanced it and added me to mortgage and deed. We are living apart and he is living in home. How can I be removed from the debt?
Asked on April 2, 2016 under Family Law, Nebraska
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
First of all, your divorce does not effect financial liability of a mortgage since the bank was not a party to the divorce action. Therefore, even if your husband assumed all liability for the payments as part of your settlement, the bank need not remove your name from the mortgage. That having been said, there is a legal tool known as a "novation", that could possibly be of help in this situation (although they are not typically granted by mortgage lenders as they would rather have 2 people to look to for payment).
With a novation, the lender would agree to have your name removed from the mortgage. It can beaccomplished by having the party whose name will remain on the mortgage (i.e. your ex-husband) prove that they have paid the mortgage without the help of the party who wants their name removed (i.e. you). If the remaining party is current and has never been late with the monthly payments, the lender may allow them to remove the other's name. A lender may also allow a novation if the remaining party "buys" the other party's release by making a substantial payment to reduce the principal balance.
So then, if your husband is agreeable, he could ask the lender to have your name removed if he can offer proof that he is financially capable of making the mortgage payments on his own, or if you and he could work out some sort of lump sum payment to the lender.
What you may want to do now is to consult directly with a real estate attorney in your area; they can best advise you further.
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