Simple assumption

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I own and live in a home that I purchased with my, then girlfriend. We have since broken up and I would like to buy her out, remove her name from the deed, loan, and insurance and do a simple assumption. Does this release her from her mortgage responsibility?

jameshogg · Posted: Mon Apr 21, 2008 10:54 pm Post subject: RE: release loan responsibility

Hi James,

Welcome to forums.

If you do a simple assumption, you will be able to release the other person from the loan. But an assumption is associated with buying the property and along with it taking responsibility of the loan. But in this situation, you are simply buying out the other person, so it's not assumption. Either you'll have to refinance or do a novation.

Check out for more on How to release one from the loan .

Thanks

adonis · Posted: Tue Apr 22, 2008 2:53 am Post subject:

To remove your girlfriend from the title, you need to make her sign on a quitclaim deed (not a grant deed because there's a loan on the home) and transfer the property-interest over to you. And for the transfer of the loan, probably you'd have to refinance.

gmakerley · Posted: Tue Apr 22, 2008 10:55 am Post subject:

once a person signs a loan note, that signature is valid until the loan is paid in full - unless a lender finds it worthwhile to release the person from responsibility.

my own experience in this area indicates this to be a rarity; but from the postings i have seen on here, it would seem to much more prevalent than i had thought.

Guest 0.10 Dollars($)

Thank you All! It is forums like this that make it easier to speak about situations that we are not familar with! It sounds like I should look into the novation formailty with my mortgage company first. It does seem odd though that when I called them, they led me down the simple assumption road first.

helping_user · Posted: Tue Apr 22, 2008 11:53 pm Post subject: RE:

Welcome back James.

Yeah indeed it's strange! I don't understand why the lender recommended an assumption when it's totally associated with home buying or selling. I think novation is a better option and you can discuss it with your lender. However, chances are, he'll ask fo a refinance as it's a popular option compared to novation.

Thanks.

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