Taking a Name Off the Mortgage Due to Divorce

 

The divorce process is a confusing, stressful, and busy process; there are a lot of things to consider and to take care of to make sure that both parties get what they want and deserve. Of course, one of the things that is a big deal in the divorce process that can be tricky is the house; what do you do with that? What if you have a mortgage? Well, in this article we will explore three ways that you can get one of the names off the mortgage, if that is the option you chose.

 

1. The first option is to take on an assumed loan. When you do an assumed loan, it simply means that one of you is willing to take on the remainder of the mortgage and make payments on it by yourself. You are assuming responsibility of the mortgage. If you are able to comfortably assume the mortgage, this is certainly an easier option. If you decide to do this option, the party assuming the mortgage will have to provide evidence that they can afford it.
   1. You will have to take a look at the conditions of your mortgage. Some mortgages cannot be assumed.
   2. The second option you can do is to refinance the mortgage. When you decide whose name will be removed from the loan, you will have to make sure that the one will remain on the mortgage to refinance it can do so; you have to make sure that they will qualify for refinancing. In order to qualify for the refinancing, the party will have to provide proof that they can afford the monthly payments as well as the refinancing costs.
      1. You will want to contact a mortgage lender about refinancing and they will give you information about the process and what you will need. They will be able to see if you qualify based on the information you supply.
      2. Give all documentation to the loan officer. This new mortgage will only have the one borrower's name on the mortgage. The information you will have to supply is:

                                               i.     Monthly income via pay stubs.

                                              ii.     Info on your monthly debt such as credit cards, home equity, school loans, and car loans.

                                            iii.     Assets and savings.

                                            iv.     Your credit score.

                                              v.     Determine the costs for closing the mortgage.

1. The third option for removing a name on the mortgage is to sell the home.

 

If you are looking to refinance a mortgage in California, refinance a mortgage in Virginia, or refinance a mortgage in Colorado, then contact TrueFi – a financial services company.