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removing a co-borrower from a mortgage loan

I have a big problem
I own three multi-family houses.. the first house, my uncle helped me buy it because I couldn't qualify for the loan myself. It is almost 4 years now. He was trying to buy a house a month ago, and the lender told him that he has a house under him and he don't qualify for another loan. My question is, is there anyway I can remove him from the mortgage without refinancing. Currently I have a 5.5 30 year fix on the mortgage, and I don't want to lose the rate nor refinance.

sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

Your uncle's name can be removed from the mortgage. But for that, you will have to request the lender. It is up to him as to whether he will allow you to take a co-borrower's name off the loan.

Thanks,

Sara.

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kelvinvin's picture
kelvinvin | Joined: August 30, 2006 01:56 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have already contact my lender Washington Mutual and they sent me an assumption package.. now, I have checked my loan and it says that the loan is not assumable. is there anyway around? would the bank allow it, even though is not assumable?
some of the papers are confused to me, because I just want to remove him from the loan, and it asked me like if I was applying for a loan or something. I have asked for help on the branch and nobody knows. is there a place where I could go to help me with the application?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi kelvin,

I have even heard that a lender can remove co-borrower's name from the loan only after a certain number of payments have been done at regular intervals.

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Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Kelvin,

I think you should show all the loan papers to a mortgage attorney and take his advice on this issue. It is better that you clarify all your doubts regarding the legal papers and then sign the papers to get the loan amount.

Thanks,

Caron.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Generally, it is difficult to remove a co-borrower's name from the loan, as the person is equally responsible for the entire loan balance. There are cases where the court may decide that a co-borrower is no longer responsible for the loan. Then the primary borrower thinks of refinancing the existing loan in order to remove the co-borrower.

hope this can help.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

What happens to a mortgage loan if the co -borrower dies on a fixed rate contract. Would I have to re-apply

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

what impact if any if the deceased co-borrowers name remained on the mortgage contract.

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

[b:70ae81bb7b]rosa[/b:70ae81bb7b]...as long as you continue to make mortgage payments as stipulated in your promissory note, you won't run into any difficulties.

[/b]mary[b:70ae81bb7b]...a coborrower's name stays on a mortgage contract whether deceased or not, until such time as the loan is paid in full. in other words, there is no impact.[/b:70ae81bb7b]

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

bad form above - i meant to put mary's name in bold and the text in standard type

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kamlangkue's picture
kamlangkue | Joined: October 13, 2008 12:05 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

It is up to your uncle, ask him first.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My exhusband and I are divorced. He lives in the house that was once occupied by us. I have gave him the home, but he can not get it refianced to remove my name. Is there any way to have my name removed with out refiancing?

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

renee, there is a process called [url=http://www.mortgagefit.com/know-how/novation-mtg.html]novation[/url] that you can attempt with the lender. essentially, if the lender feels safe in keeping your former spouse as the only borrower and eliminating you, they might see fit to release you from liability.

the only other method for removal of your name is the refinance route.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi I bought a house with my parents 3 months ago, the only reason I was added to the loan was that my dad makes cash money and the lender couldnt grant him a loan so my parents aske dme to be added to teh loan as I make documented money. I am getting married in 6 month and would like to be removed from the loan , any advice on the process?

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savior70's picture
savior70 | Joined: March 25, 2009 05:14 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi

Your parents need to refinance the mortgage in their names to remove yours from it. You can also do a Novation to take your name off the loan. However, the lender's approval is required for that which is why I think you should contact your lender and discuss this with them.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

What if the lender doesn't accept this? Should I refinnace? look for another lender?

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

my gut-level reaction to how the bank will view your situation is not favorable, maria. since only 3 months have elapsed from the time you went on that loan as a cosigner, your parents will not have established much of a track record; a track record is key in their attempt to [url=http://www.mortgagefit.com/refinance.html]refinance[/url].
you may well be stuck at this time.

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

if your dad is making "cash" income, there's not much flexibility in lending guidelines to help you out in this situation.

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devidas_padir's picture
devidas_padir | Joined: March 1, 2009 12:17 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

It can be done but here are the reasons why the lenders don't take the risk-
1. The person remaining on the mortagage may be 'less efficient' to repay the loan in bank's opinion
2. There is a risk that, if the remainder gets defaulted, the lender's decision goes wrong by allowing a person to own a deliquent property -whose loan was already rejected for less fullfilling documents. Thus the decision maker may be questioned for that.

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

huh?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi. I was added to my father's loan via [url=http://www.mortgagefit.com/know-how/novation-mtg.html]novation[/url].. all we did was record a grant deed that added me to title. They did not run my credit or check my income.. however, now I want out of this liability and they won't take me off without refinancing which is not possible... they lender offered to take my name off the loan by removing me from title but they say I am still liable in case of default from my father.. how is this possible that I am trapped? I never signed any loan documents or promissory notes.. just sent them a copy of the recorded title..

Im thinking that the people at the assumptions dept. (GMAC) are confused and think that I was initially a coborrower on the loan when I was not..

Any help would be appreciated..

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jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Marvin,

They are right in saying that even if you remove your name off the title, you will still be liable for the mortgage in case of a default. A refinance seems to be the only way to remove you from the loan.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Six years ago I used to work as mortgage loan processor and if we showed another person made the payments on a debt for the last 12 months (usually via copies of the cleared checks) we wouldn't hold the debt against the borrower. I don't know if they still do this. However, the borrower may not qualify for 1st time home buyer programs, and any late payments wouldn't be a problem.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Sorry, late payments WOULD be a problem.

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

garner, you are correct in what you've said. i'm not certain that every underwriter will apply the same standard when a different party is making payments. i'd like to think that's the case, but we've seen such enormous changes in how loans are processed, underwritten and closed in the last couple of years, that it's anyone's guess.

it still ought to be valid, though.

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dilipgagare's picture
dilipgagare | Joined: March 26, 2009 04:41 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Dear friend this is very difficult to transfer but you can discuss with lender tell your problem he will give you proper advoice.
And you should confirm with your uncle to transfrring ownership.

Thanks
Dilip

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

dilip!!!!!!! to whom are you responding? are you even reading these? at all???

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am getting refiancing done on my home loan along with my husband but i am removing my name from co-borrower. If i remove my name will it effect my credit score in any ways ?

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

brio, i suspect the ultimate result is going to be negligible. your credit report would show you as having been obligated on what is now a paid in full mortgage loan. that you no longer would have that loan as an active, open account wouldn't hurt you nor would it benefit you all that much.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

hi, my mom and my sister helped us to buy a houses 5 years ago. i would like to know if there is a way that we can remove my mom from the loan without refinancing. a quitclaim deed has already been signed by my husband and i and the lender is awared.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

hi, my mom and my sister helped us to buy a houses 5 years ago. i would like to know if there is a way that we can remove my mom from the loan without refinancing. a quitclaim deed has already been signed by my husband and i and the lender is awared.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Can a coborrower put a house up for sale when the borrower is living in the house

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

"putting a house up for sale" is, frankly, different than selling it. i suppose it's entirely possible to do that. however, if someone comes along to buy that home, all owners must be available to sign the appropriate documents for the sale.

that may not answer your question the way you were hoping, but i think it sheds some light on the situation for you. please respond if you need more clarity.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

From what I understand. If I want to get out of a loan where my dad is primary and I am co borrower, chances are it can be done and I wont be held responsible by any means.

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eric1's picture
eric1 | Joined: January 4, 2009 03:52 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Ishaq,

Refer to the following thread...

http://www.mortgagefit.com/problems/removename-refinance.html

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hello,
My sister and I recently purchased a house together just like in May, I was really stupid enough to do this with her and I've run into many problems because of this house, and I told her that to remove my name all she has to do is refinance, she doesn't believe me, So What should I tell her so that she believes me and try to get my name removed from the house so I wont end up killing myself in the end??

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savior70's picture
savior70 | Joined: March 25, 2009 05:14 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

A refinance will surely take your name off the loan if your sister refinances in her own name. But she needs to have good credit score and sufficient income in order to qualify for the refinance on her own. What you can do to make her believe you is, let her talk with a lender regarding this and let her ask him if a refinance would indeed take your name off the loan. This should give her the answers to all her queries.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

but I heard that you have to wait a certain time to be able to refinance, is that true?

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eric1's picture
eric1 | Joined: January 4, 2009 03:52 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Please follow the link for your answer...

[url=http://www.mortgagefit.com/problems/removename-refinance.html]Remove A Name From A Mortgage[/url]

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi.. i currently am a co buyer on a mortgage loan.. the buyer got orders to another state with the military...how hard is it for myself and my wife to take over the loan and have his name removed?

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jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi jamisont,

The buyer who moved to a different state has ownership rights to the property. You cannot remove his name from title, unless he signs over the ownership to you. As far as the mortgage loan is concerned, you are a co-borrower, right? If it is right then you are equally responsible for the mortgage and if the buyer stops making payments, the lender will come after you. In case you want to take over the entire mortgage liability, you can refinance the loan in your name.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

co-borrower family wants half of the house the co-borrower never but a dime on te mortgage payments we went to court now i have to sell the house just to give them 25 percent. my credit not good so i cant refinace what im sppose to do, my house not selling i even brought the house down some but still not selling the decease want to take me back to court.

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savior70's picture
savior70 | Joined: March 25, 2009 05:14 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi boobala,

[quote:c572dfae7f] co-borrower family wants half of the house the co-borrower never but a dime on te mortgage payments we went to court now i have to sell the house just to give them 25 percent.[/quote:c572dfae7f]

The co-borrower is forcing you to sell the house, right? Is he on the property title, besides being on the mortgage? If he is in deed on the property title, he does have a right to the property and can claim his interest. But if he is not on the title, he cannot force you to sell the house. Do you use this property as your primary residence? If you do, then the court may not order a forced sale of the house, if you do not intend to sell it. You can consult a lawyer to know what rights you have in case the co-borrower takes this matter to court.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

my ex-girlfriends name is in-correct on our joint mortgage she signed , could she be void of this mortgage

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jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Austin,

Your ex-girlfriend's name may be spelt incorrectly on the mortgage deed due to some mistake, but this is unlikely to release her from her mortgage responsibilities. The fact that she signed on the mortgage note does not change in any way. She still remains responsible for the mortgage.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have gone through "Quit claim" and "Turn over mortgage" with my ex wife and was told that the "Turn over Mortgage" would remove my name and will not be liable for the mortgage anymore. 4 years has passed and now I got a call from a bank saying that I have a "black mark" in my credit because "I" have not paid mortgage in 60 days---Well, I don't have a mortgage as far as I know. I received a letter from the Countrywide then (4 years ago) acknowledging I am no longer liable for the mortgage. Unfortunately, since it has been so long, I can not locate that piece of paper anymore. Countrywide is now Bank of America and I am not sure how that piece of information from Countrywide did not carryover to Bank of America. Turn over mortgage does take out my name in the mortgage, right? How else, other than the now lost piece of paper, can I prove that I am no longer in that mortgage?

Thanks for your response!
Sorry, I posted this question in the "[url=http://www.mortgagefit.com/know-how/novation-mtg.html]novation[/url] forum" but I think this is the correct forum that is why I reposted....Thanks

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi DD!

Welcome to forums!

You're query has been replied to in the given page:
http://www.mortgagefit.com/know-how/novation-mtg-8.html#169711

Take a look at it. Hope it helps you.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

my husband has asked me to write a letter to a friend of his to say i am happy to take my name of the title deeds & the joint morgage, for a settlememt of money . Is this the right thing to do ?

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome pauline,

Will you be really happy to remove your name from the property and the joint mortgage for a settlement of money? If not, then you shouldn't be writing any such letter.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My grandmother was my co-borrower on my mortgage. She passed away 2 weeks ago.How do I go about removing her name? Or do I go on continuing to leave her name on the deed.I've had my place for 8yrs and 11mo. and in the process of looking for a loan modification. :cry:

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi dumervils,

You can remove her name from the property deed by filing an affidavit of heirship at the county recorder's office. As far as the mortgage is concerned, you'll have to [url=http://www.mortgagefit.com/refinance.html]refinance[/url] it to remove your grandmother from the docs.

Thanks

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