Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

Novation - Release the liability from the loan

Posted on: 22nd May, 2006 04:56 pm
hello,

in order to get my name off a mortgage of a property which i signed a quit claim deed, the banker refused to refinance the other party but stated there is a way to get the debt not to show up on my credit report but yet i am still responsible for the mortgage? what is this process called, do you know? i am planning to meet with this banker in a few days but i sure would like to know a little bit about it before i meet with him.

thank you for your time. :?
Hi wade,

If your wife signed the release of liability on the home loan, she is no longer responsible for the loan debt. If her ex-husband was ordered in the divorce decree to refinance the loan within 60 days and he still has not done that, he is guilty of contempt of court. She can file a case against him to force him to either refinance or sell the home in order to release you from the liability.
Posted on: 21st Oct, 2009 11:47 pm
i disagree with the release of liability signed by a borrower being valid to remove someone's obligation, though it's possible that the contempt of court that jenkin cited can be obtained.

then again, if someone was to refinance, and attempted to do so only to get declined, i doubt that there's any remedy. now i don't know the particulars of this case, but i'd bet that's a lot more prevalent in modern times than in the past.
Posted on: 23rd Oct, 2009 06:40 pm
Hello, I am in need of any help I can get. I was seeing a girl last year. She refinanced her house and needed a co-signor. She got the refinance and I was placed on the loan as the c0-signor, but not put on the deed. We were NEVER married and she has been paying the loan for the last year and a half. We have not been together for over a year. I am trying to purchase a home but because of this the debt to income is to high. I asked her to refinance and also agreed to pay closing costs, she said she didn't care if I wanted to buy a house, I would never own one, if it's up to her.
Posted on: 07th Jan, 2010 05:10 pm
hi austin,

it sounds so unfair that she does not care if you want to buy a home, even though you had once helped her refinance her home. this is why people should always consider all the pros and cons before co-signing on a loan. after all, as a co-signer you are as much responsible for the loan as the main borrower. a novation is also unlikely to be possible. but you can still talk to the lender regarding this. since she can afford the mortgage and has been making payments on time, the lender may consider taking your name off the loan through a novation.
Posted on: 07th Jan, 2010 11:51 pm
jenkin7, you've hit the nail on the head there. a co-signer is equally liable as a borrower. even more important, if you feel it appropriate to enter the world of co-signatures, you'd better have an extraordinary knowledge of the person for whom you're signing. when i say i have seen a lady lose her home because she co-signed for her daughter, i speak truth. of course, she could have saved her home, but she was obstinate and felt it "wasn't fair" instead of trying to make the deal work and live up to her obligation.

it's unfortunate that your romance lasted only until the ink was dry on the mortgage documents. i am also convinced that novation is a thing of the past, but it's worth a shot. if you can somehow placate your former friend, perhaps she'll see the humane way to do things and agree to refinance so you can both then move on. remind her that she'll always be tied to you as long as that loan remains unpaid - if she's that sick of you, she'll agree to refinance then, we hope.

another tack you may wish to consider is to ask her if she'd be willing to provide documentation showing that she'd paid for at least the past 12 months (if and when you apply for a mortgage). you may find lenders willing to discount your obligation on that mortgage if you can document that you're not making the payments, that they are on time, and that she is actually making all of them.

don't give up - that's not going to benefit you either.
Posted on: 08th Jan, 2010 07:14 am
Posted on: 22nd Jan, 2010 07:37 am
marie, the risk you run in adding him to title is that your lender could demand payment in full. that, of course, could result in your refinancing the existing loan with both of you on the loan, if he now qualifies. of course, your continuing to make timely payments means that the lender isn't necessarily looking for trouble, either. it would certainly make sense to add him based on what you've said - that he's been making payments regularly. how long has it been, and has he been able to rehab his credit?
Posted on: 22nd Jan, 2010 04:37 pm
Can my wife be removed off a mortgage loan? We are still married but I would like to separate our credit debts. She is thinking of bk on her debts and I don't want it to affect the house or me. I'm already taking care of all the debts that are in both of our names, but she quit paying her bills because she cannot find work, and I can't take on anymore than Im doing now
Posted on: 24th Jan, 2010 04:49 pm
taking her off title immediately prior to her filing bankruptcy would cause much consternation in the bankruptcy court i believe.
Posted on: 24th Jan, 2010 07:48 pm
My brotheer is dying and wants to put my name on his house deed. Would I be better off tax wise to be on the deed, or to get the house in a will after his death?
Posted on: 22nd Feb, 2010 08:33 pm
Hi lucy,

If your brother leaves the property to you in a will, it will have to go through probate. The entire process of probate is generally long and costly. However, if adds you to the title as a joint tenant with the right of survivorship, you can have legal ownership to the property. When he is deceased, you can have the title solely in your name through the right of survivorship. The property will not have to go through probate in such a situation.
Posted on: 24th Feb, 2010 09:33 pm
I am recently seperated and my ex wants me to put our home in my name since I will be staying in the home, both our names are on the loan and Im not sure I can refinance because I dont have a full time job and we havent settled the alimony and child support situation yet can you give me some idas please!
Posted on: 19th Mar, 2010 05:41 am
rhonda, if you were to attempt to refinance the existing mortgage, you'd be wasting your time now. once the alimony/support situation is rectified, and you have a formal separation agreement (if any), things could change.

keep this in mind: without a full time job and without previous receipt of alimony and/or support, you won't qualify for a conventional loan (fannie mae/freddie mac) or an fha loan. there is a slim possibility that a local lender (such as credit union or small bank) might take a flyer on you depending on your credit, etc.

for most programs you must have been receiving alimony and/or support already and that means you must provide evidence.

your "ex" is jumping the gun - it's far too early for you to think about refinancing. if you are willing and able, that's wonderful; but it isn't about to happen anytime soon, i believe.
Posted on: 19th Mar, 2010 01:12 pm
I helped co-sign a mortgage for my brother about two years ago since he was unable to get a mortgage with his credit score. I'm wanting to release my name from the mortgage. He have went to our mortgage lender and he said they have denied him his request to refinance with his current credit score even though he haven't had any late mortgage payment in the last two years and also with his high income.

I'm planning on buying a house and need to remove my name from his mortgage so that I can get a mortgage of my own. Is there anything I can do to remove my name from his mortgage if he's not willing to refinance?
Posted on: 05th Apr, 2010 08:22 am
Hi Alexsmt,

There is no way you can remove your name from the mortgage unless your brother refinances in his own name. If he has good income and credit score there should not be any problem for him to refinance the loan. What are his current credit scores?

Till the time he refinances, your name will remain on the mortgage and you are as much responsible for the loan as your brother is. The lender would not want to take your name off the mortgage until it is paid off in full.
Posted on: 05th Apr, 2010 11:33 pm
Page loaded in 0.105 seconds.