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asinsilvia · Joined: 18 Nov 2006 Posts: 1 4.95 Dollars($)

What is novation? Can anyone define it for me...

mcole · Posted: Sun Nov 19, 2006 6:39 am Post subject: re: what is novation

Greetings,

Typically, novation means substituting a new debtor or creditor on an existing loan. It's not something you can just do on your own, as the lender would have to approve the substitution and the new debtor.

Cool

sara · Posted: Sun Nov 19, 2006 9:10 pm Post subject: RE: what is novation?

Hi Asinsilvia,

Novation is a legal process by which a person on a loan can transfer the loan to some other person thereby making himself free from the liability of making the payments. But the transfer is possible only if the lender allows for it.

I am not sure as to in which situation you may apply novation. But you can read through our previous discussions on Novation if you are interested to know more about the process. You will be able to go through the discussions at:

http://www.mortgagefit.com/discuss/about2128.html
http://www.mortgagefit.com/discuss/quitclaimdeed-novation.html .

Thanks,

Sara

Guest

I am in the process of a divorce and my future x-husband wants to refinance the house but can't until my name is off the house, (so he says) what steps do I have to go through to get this done, I have called the mortgage co. & they told me I will have to pay $125 & a copy of the purchase agreement for them? Is this correct? Or is there another way to do this? Thanks

evolovik26 · Posted: Mon Jul 21, 2008 9:29 pm Post subject:

If you no longer want to have ownership rights t te house then it is that simple. You sign a quitclaim deed and you are no longer have any ownership of the house. Then your husband is sole owner and can refinance. But just make sure you realize that once quitclaim the house to him its his and you have no rights to it.

Guest

I am in the process of divorce and my future ex husband wants to keep the house and says he can't get refinanced. Is there a way to give him the property and the loan responsibilities since he's in agreement? I have heard of novation... is it possible in this case? I have moved out and he's paying and I would like to eventually purchase my own property.

Niicss · Posted: Wed Aug 06, 2008 4:34 am Post subject: re: novation on mortgage

Welcome Mary.

You can quitclaim only if your husband can refinance the mortgage or the mortgage company agrees for novation. If your husband cannot refinance the mortgage then talk with the mortgage company and check out whether they can accept the novation?

Guest

i and my daughter are on her home loan,her husband who was making all payments just filed chapter 7, i want my name removed from the loan making it only my daughters obligation and not ruin my credit. is this possible? Apart from refinance, I've also heard of novation. Can I go for it?

sara

Hi Tina,

Welcome to the forums.

You can remove your name from the loan if the lender allows your daughter to refinance the loan in her name only. As far as novation is concerned, it would be completely your lender's discretion. In most cases, lenders prefer refinance to novation. The chapter 7 filing shouldn't affect you and your daughter if you two or either of you can start making payments instead of the husband. Does the lender know that the husband was making payments on your behalf?

I'd also like to know whether your son-in-law has included the mortgage in the bankruptcy?

Take Care

Guest

Hi, my mom's house/property is facing foreclosure and my husband and I would like to try and assume her mortgage and have a quitclaim deed done. I don't want her to have any responsibilities to the property, we want to have it in our names. Our credit isn't good, i'm not sure if we'd be able to refinance. We would sell our own property to do this, if it's possible. Any suggestions? I realize that the quitclaim deed wouldn't stop the foreclosure but if we took over the ownership of the house, couldn't we just pay the mortgage and live in the house until we could refinance? If we can't refinance, can be sign a novation agreement? Can you let us know what it is all about?

jenkin7 · Posted: Tue Aug 19, 2008 6:15 am Post subject: re: what is novation

Hello Heather.

Welcome to the forums.

If you are buying the property from your mother then you may assume the loan. So talk with the mortgage company and check out whether they can allow you to assume the loan. Otherwise you will have to refinance the mortgage on your name.

Novation is a process to transfer the mortgage from one person to another. You will have to contact the lender in order to check out if he would accept a novation in your case. In most cases, lenders ask for a refinance.

Feel free to ask the community if you have further questions.

Guest

Hi. I bought a second home. Can my sister who is renting my first home file for homestead? Thank you Ginny

sara · Posted: Mon Sep 01, 2008 2:40 am Post subject: RE: who can file homestead?

Hi Ginny,

Welcome to the forums.

Homestead can be filed by owner of a property and those who rightfully occupy the property by lease. The property should be the principal residence of the owner or the lessee.

Joint tenants or tenants in common may be regarded as owners who can file homestead unless only one owner intends to acquire a homestead on the property.

Take Care

Guest

My ex and I split up and he is living in the house we were buying together. I want my name off the house and I need to know how to do it. He said I needed to sign a quitclaim deed. Will that take my name off the house and will my credit not be effected anymore when he is late on the payments? What if he can't refinance the loan in his name? I've heard of novation...what is it? can he go for it?

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.12 Dollars($)

Hi Kellie,

He will have to refinance the mortgage into only his name. By just removing you from title, it does not remove the obligation from the mortgage. So if he is late on a payment it will show on your credit report until this is done. He can refinance and have you removed from title at the same time. The title company can do this together at the closing. Timing may be in your favor since rates have just dipped quite a bit in the last couple weeks. With good credit, the rate could certainly be less than what it is on the current mortgage.

Novation, as mcole says in his above post, is all about substituting one debtor with another on an existing loans. It will depend upon his lender whether or not he would get it.

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Novation - Transfer mortgage to another individual