2009.09.22 15:20:50

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The most common question we are asked as Colorado mortgage professionals regarding a divorce is “how do I get my ex off the mortgage?”

Name Delete Assumption

Name Delete Assumption is the least know’ of the three options. Contact the servicer of your mortgage, (the company that sends you the monthly mortgage statement), and inquire if they will allow for Name Delete Assumption.  If the servicer does allow for Name Delete Assumption they will require that the remaining partner on the mortgage can indeed qualify for the mortgage and will be required to apply for the mortgage anew. Have in mind that no new appraisal is required and the terms of the loan like the  interest rate with remain the same. Once the servicer has approved the application for the mortgage they will release the departing partner and require the remaining partner to re-affirm the debt and security instrument. Name Delete Assumption is the least expensive option as the lender will usually only charge approximately $500.00 - $1,000.00 for underwriting, etc.

This option can be quite tedious and if you do not want to go through this process yourself please contact us and we will contact your lender on your behalf at no cost to you.

Refinance

If the servicer does not allow for Name Delete Assumption, the next option would be to refinance the mortgage.  If the remaining partner wishes to remain in the home for the near future then this is the next best option for removing a departing partner on a mortgage. If the remaining partner is able to qualify for a new mortgage loan the departing partner would be required to execute a “Quit Claim Deed” at time of close of the refinance, that would then transfer the departing partner’s ownership of the home to the remaining partner.     

Sell

If the remaining partner can’t qualify for a Name Delete Assumption or a refinance the only option left to remove a person from the mortgage is to sell the home.  Contact a Realtor you are both comfortable working with and arrange for the home to be listed for sale.  As always make sure the Realtor has a track record of selling homes in your neighborhood, has several newer references for you to contact and is in good standings with the local board of Realtors.

If none of the above mentioned options are a possibility, the partners would have to keep the home in their names and continue to pay the monthly mortgage. 

First Choice Mortgage Company’s is committed to be an information and education resource for the Colorado mortgage consumer and a full range of mortgage tools can be found on our website  www.FirstChoiceMortgageCoLLC.com. We pride ourselves on being a full-service mortgage company where you get the advantage of experienced mortgage professionals, great rates and a very wide range of mortgage products.