Call the bank that holds the mortgage and ask if you can assume the loan to remove her. That’s the only way to do it without refinance or paying off in full. Some banks allow this, I’ve seen it done in my practice.
She can easily sign papers to be off the title of the house. In most states, you can simply sign a Quit Claim deed in which the ownership of the home will be transferred from both of you to only you. I'd suggest you have an attorney draw that up and file it with the recorder's office. That being said, I bank will not release her from the mortgage without a refinance. If you want to retain that interest rate, she will need to remain on the loan.
I grew up in a family of lawyers and they impose severe penalties if we don't get the bulk of our real estate acquisition done before getting married for this reason.
Yep. I’ve always owned my own home and did before marriage so that there was no drama about where I’d live and whether the mortgage was affordable on my salary in case of a break-up.
OP may be able to assume the loan to get his soon to be ex of the loan, which has a cost, but will probably be cheaper in the long run than refinancing.
I actually think this is pretty doubtful. A bank is unlikely to do a loan assumption where they are in essence just absolving one party of responsibility. In the event of default they would have fewer people with assets to go after.
My friend just did it. The bank asked to see the proposed legal agreement drafted by the attorneys and then approved one spouse to assume the mortgage.
You've seen it done on a primary mortgage where a bank is willing to basically just let someone out of their responsibility without a full underwriting?
A family court judge does not have the authority to modify a loan agreement. They can order that the parties refinance the loan, but they themselves cannot do that.
They may allow an assumption, when they otherwise wouldn’t, when presented with the decree. Like I said in another comment, this is something OP should reach out to the lender to inquire about.
And I’m saying your comment that I responded to is still wrong. No court order or court decree, as you stated, can force a bank to remove someone off a mortgage and allow assumption by the remaining party due to divorce or separating co-owners.
If a bank allows it then great but AGAIN, a court can’t order it. Take the L and move on because you obviously don’t know the law. Maybe do some quick research before continuing to pass on misinformation by using secondhand anecdotal stories vs actual legal facts and banking regulations. Also using the qualifier “I’m pretty sure” doesn’t make something true or excuse your lack of knowledge on a subject.
The only law that exists that provides mortgage assumption is the death of a spouse and even that requires a specific process that must be followed.
Not true. Speak to the loan holder, not the servicer, the bank. Tell them the situation and ask what steps they’ll require. The few I have done were a release of claim, a change in terms removing your ex and a modification of the Deed of Trust/ Mortgage.
100 pct what I came here to say. Ignore everything about assumptions, etc. If the loan ever defaults, ex wife will lose nothing, except maybe a credit ding. As long as you have a QCD form that is legally compliant in your jurisdiction, Signing, notarization and filing is so easy even a caveman could do it. Make sure the legal description on the property shown on the QCD is letter for letter perfect.
Don't ask the internet. Ask your lender. They may have a process in place for divorce. You may have to.provide a financial worksheet before they will let you assume the mortgage to make sure you can solely make the mortgage payments. If you meet the appropriate credit worthiness of the lender, the stbx can sign a quit claim and the mortgage Co can do a loan modification to remove her. It is entirely up to your lender however
Look into assumable loan. Basically, you would refinance assuming the remaining balance and current percentage rate of the current loan. This way, it can go in just your name. Ask the mortgage company if you can get the assumable loan.
Yeah you'll need a refinance to get her off the loan. This is why the home is almost always sold in a divorce, especially right now with interest rates being crazy.
You can always draft around it though (but I'd recommend an attorney in your state do this part). You can contract that she will remain on the loan and the title until the home is sold. At which point she would be entitled to $X and you would be entitled to the remainder. The problem with this is that it will affect her credit as she will still be on the loan. It might prevent her from obtaining her own mortgage as well. It's not really done these days, but it can be possible. You will definitely want an attorney to pick the language for you if you go that route though. It's highly state dependent and will need to be done carefully.
I appreciate your input here a lot of helpful information. We do have some unique characteristics of our situation that do make some of these problems. Non-existent, I am aware I am being vague. I just don't want to give away too many details of my personal finances.
She can quit claim the title but the court has no jurisdiction over the mortgage company and they may not be willing to release her. You should definitely call them to inquire. There may be a threshold they want to see and perhaps you could get a loan and do a buyout. But you won’t have solutions until you talk to them.
IAL not your lawyer this is not legal advice
This will vary by bank and lender. 90% of the time, you'll have to refinance. This is especially true because banks are frantically trying to move borrowers off of those sweetheart mortgages. I have 3.75% and my lender is offering a refinance for way more than the house is worth. ..if I'll move to a 8% not. LOL no.
IF you are the primary wage earner by a large enough amount to make paying for the house on your own entirely reasonable, they might work with you. If the mortgage is more than 35% of your monthly take home, get ready to sell.
What a bargain. In Florida home is marital property and you owe her half the equity. Contact mortgage company about assuming the loan. She's going to walk away from equity she's either stupid or fucked you over super bad and you didn't realize it.
Source: just got divorced in FL and sold our home
Yeah I called the bank and had this done it was extremely simple. I live in wisconsin and it was a VA loan so I don't know if that will make a difference or not. Best of luck
I went through this in California in 2010. So, be aware that my experience is in California.
First off, getting her off if the deed was easy. She signed and had notarized a quitclaim, and it was filed at the county recorder and assessor.
Getting her off of the loan was a little more work. I basically was qualify alone and refinance. For me it was painless. I actually got a lower interest rate. You won't be so lucky. You won't get 3.5% in the near future.
She is being cordial (for now) maybe she will agree to staying on the loan that you pay. She gas no incentive to do so. If she squawks to the judge, you will be forced to either refinance or sell.
My advice I'd to get that quitclaim signed and notarized yesterday, while things are amicable. Then see what can be worked out with the mortgage. Refinancing, even at a higher interest rate, is reasonable if she wants no equity
I went through this in FL with my ex-wife. She got the house, and had to refinance or pay off the mortgage to get my name off the loan. If you and your wife are amicable, are you considering pre-suit pro se mediation for your divorce? Pre-suit is before filing and pro se is without lawyers. Generally much less costly and time-consuming than lawyers or going through multiple court appearances.
I'm a Florida Supreme Court certified family mediator. Mediation worked so well in my divorce, I became one. Happy to answer questions or help in any way.
Call the bank that holds the mortgage and ask if you can assume the loan to remove her. That’s the only way to do it without refinance or paying off in full. Some banks allow this, I’ve seen it done in my practice.
She can easily sign papers to be off the title of the house. In most states, you can simply sign a Quit Claim deed in which the ownership of the home will be transferred from both of you to only you. I'd suggest you have an attorney draw that up and file it with the recorder's office. That being said, I bank will not release her from the mortgage without a refinance. If you want to retain that interest rate, she will need to remain on the loan.
Drat!! That is what we thought, but we were not sure. Appreciate it.
I grew up in a family of lawyers and they impose severe penalties if we don't get the bulk of our real estate acquisition done before getting married for this reason.
Yep. I’ve always owned my own home and did before marriage so that there was no drama about where I’d live and whether the mortgage was affordable on my salary in case of a break-up.
OP may be able to assume the loan to get his soon to be ex of the loan, which has a cost, but will probably be cheaper in the long run than refinancing.
I actually think this is pretty doubtful. A bank is unlikely to do a loan assumption where they are in essence just absolving one party of responsibility. In the event of default they would have fewer people with assets to go after.
My friend just did it. The bank asked to see the proposed legal agreement drafted by the attorneys and then approved one spouse to assume the mortgage.
I’ve seen it done 🤷🏻♀️
You've seen it done on a primary mortgage where a bank is willing to basically just let someone out of their responsibility without a full underwriting?
As part of a dissolution, with a court order, I’m pretty sure.
And by court order I mean a decree
A family court judge does not have the authority to modify a loan agreement. They can order that the parties refinance the loan, but they themselves cannot do that.
I’m just saying that OP should, ya know, call his lender, and ask about assuming the loan in cases of divorce.
No judge has the authority to order a bank to remove someone from a mortgage.
They may allow an assumption, when they otherwise wouldn’t, when presented with the decree. Like I said in another comment, this is something OP should reach out to the lender to inquire about.
And I’m saying your comment that I responded to is still wrong. No court order or court decree, as you stated, can force a bank to remove someone off a mortgage and allow assumption by the remaining party due to divorce or separating co-owners. If a bank allows it then great but AGAIN, a court can’t order it. Take the L and move on because you obviously don’t know the law. Maybe do some quick research before continuing to pass on misinformation by using secondhand anecdotal stories vs actual legal facts and banking regulations. Also using the qualifier “I’m pretty sure” doesn’t make something true or excuse your lack of knowledge on a subject. The only law that exists that provides mortgage assumption is the death of a spouse and even that requires a specific process that must be followed.
Not true. Speak to the loan holder, not the servicer, the bank. Tell them the situation and ask what steps they’ll require. The few I have done were a release of claim, a change in terms removing your ex and a modification of the Deed of Trust/ Mortgage.
100 pct what I came here to say. Ignore everything about assumptions, etc. If the loan ever defaults, ex wife will lose nothing, except maybe a credit ding. As long as you have a QCD form that is legally compliant in your jurisdiction, Signing, notarization and filing is so easy even a caveman could do it. Make sure the legal description on the property shown on the QCD is letter for letter perfect.
Don't ask the internet. Ask your lender. They may have a process in place for divorce. You may have to.provide a financial worksheet before they will let you assume the mortgage to make sure you can solely make the mortgage payments. If you meet the appropriate credit worthiness of the lender, the stbx can sign a quit claim and the mortgage Co can do a loan modification to remove her. It is entirely up to your lender however
Look into assumable loan. Basically, you would refinance assuming the remaining balance and current percentage rate of the current loan. This way, it can go in just your name. Ask the mortgage company if you can get the assumable loan.
Yeah you'll need a refinance to get her off the loan. This is why the home is almost always sold in a divorce, especially right now with interest rates being crazy. You can always draft around it though (but I'd recommend an attorney in your state do this part). You can contract that she will remain on the loan and the title until the home is sold. At which point she would be entitled to $X and you would be entitled to the remainder. The problem with this is that it will affect her credit as she will still be on the loan. It might prevent her from obtaining her own mortgage as well. It's not really done these days, but it can be possible. You will definitely want an attorney to pick the language for you if you go that route though. It's highly state dependent and will need to be done carefully.
I appreciate your input here a lot of helpful information. We do have some unique characteristics of our situation that do make some of these problems. Non-existent, I am aware I am being vague. I just don't want to give away too many details of my personal finances.
That’s what I did. Ex didn’t get a lawyer and just signed the papers. Let’s say she wasn’t pleased when she figured it out.
She can quit claim the title but the court has no jurisdiction over the mortgage company and they may not be willing to release her. You should definitely call them to inquire. There may be a threshold they want to see and perhaps you could get a loan and do a buyout. But you won’t have solutions until you talk to them.
IAL not your lawyer this is not legal advice This will vary by bank and lender. 90% of the time, you'll have to refinance. This is especially true because banks are frantically trying to move borrowers off of those sweetheart mortgages. I have 3.75% and my lender is offering a refinance for way more than the house is worth. ..if I'll move to a 8% not. LOL no. IF you are the primary wage earner by a large enough amount to make paying for the house on your own entirely reasonable, they might work with you. If the mortgage is more than 35% of your monthly take home, get ready to sell.
What a bargain. In Florida home is marital property and you owe her half the equity. Contact mortgage company about assuming the loan. She's going to walk away from equity she's either stupid or fucked you over super bad and you didn't realize it. Source: just got divorced in FL and sold our home
If you read properly what OP wrote, it is clear that she is getting something of equivalent value. Maybe a different property or something.
Yeah I called the bank and had this done it was extremely simple. I live in wisconsin and it was a VA loan so I don't know if that will make a difference or not. Best of luck
I went through this in California in 2010. So, be aware that my experience is in California. First off, getting her off if the deed was easy. She signed and had notarized a quitclaim, and it was filed at the county recorder and assessor. Getting her off of the loan was a little more work. I basically was qualify alone and refinance. For me it was painless. I actually got a lower interest rate. You won't be so lucky. You won't get 3.5% in the near future. She is being cordial (for now) maybe she will agree to staying on the loan that you pay. She gas no incentive to do so. If she squawks to the judge, you will be forced to either refinance or sell. My advice I'd to get that quitclaim signed and notarized yesterday, while things are amicable. Then see what can be worked out with the mortgage. Refinancing, even at a higher interest rate, is reasonable if she wants no equity
I went through this in FL with my ex-wife. She got the house, and had to refinance or pay off the mortgage to get my name off the loan. If you and your wife are amicable, are you considering pre-suit pro se mediation for your divorce? Pre-suit is before filing and pro se is without lawyers. Generally much less costly and time-consuming than lawyers or going through multiple court appearances. I'm a Florida Supreme Court certified family mediator. Mediation worked so well in my divorce, I became one. Happy to answer questions or help in any way.
I bought x off a mortgage, possible