How do you release someone from financial liablity from a mortgage, if two people are on the loan?
2006-10-13 08:47:29 · 11 answers · asked by MiMi78 2 in Business & Finance ➔ Renting & Real Estate
How doe you release someone from financial responsiblity and remove the loan off the other party's credit report.
2006-10-13 08:49:04 · update #1
Quitclaim won't do it. The remaining people on the loan must requalify on their own in order to get the lender to release someone. This basically means "You have to refinance."
Sorry, but the lender based their decision to lend upon that person being responsible for the loan also. They won't let them off the contract that says, "I agree to pay..." without being certain (within underwriting guidelines, anyway) that the remaining people can make the payments.
2006-10-13 08:59:05 · answer #1 · answered by Searchlight Crusade 5 · 4⤊ 0⤋
Quit Claim won't work. refinance is an option. Another way to do this without refinancing is to create a trust, place the property into the trust, have the trust make the loan payments and have the other person relinquish their rights to the trust. That way, the lender can't call the loan. Then that person shows proof to all three credit bureas that the trust is making the loan payments and the credit bureas will remove the mortgage/loan info from the credit report.
Regards
2006-10-13 11:49:48 · answer #2 · answered by Anonymous · 1⤊ 0⤋
To get her off the loan, you have to refinance the property in your name only. Your ex then signs a quitclaim deed to the property. When the refinance funds, the mortgage and the deed are then recorded in your name only. If you can't refinance the property (like you owe more than it's worth), you're stuck until the value comes back up. Unless you get foreclosed on or sell it as a short sale. With either of those options, your ex gets the bad marks on her credit report, too.
2016-03-18 09:03:13 · answer #3 · answered by Marie 4 · 0⤊ 0⤋
if you want to remove someone from mortgage payment liability- you have to refinance your property without this person on the loan. after this, this person credit will show mortgage account closed.
2006-10-13 18:24:40 · answer #4 · answered by bianca 4 · 0⤊ 0⤋
You need to ask the lender to provide you with a "Release of Liability" document which does what is says. Not many lenders will do this so you may need to refinance and take the other person off the loan and title to the property.
This site has many reports that will most likely answer most of your questions -- www.paynotaxesforlife.com
2006-10-13 08:58:30 · answer #5 · answered by Pay No Taxes For Life 2 · 2⤊ 1⤋
As others have said, you have to refinance. Theoretically the lender might release one of the borrowers, but it doesn't really work this way.
A quit claim transfers ownership of the property, it does not close a borrower's debt.
2006-10-13 09:54:47 · answer #6 · answered by Adoptive Father 6 · 1⤊ 0⤋
Remaining parties on the loan wil have to qualify for the refinance on their own. Quit claim is not the answer.
2006-10-14 02:51:01 · answer #7 · answered by Anonymous · 0⤊ 0⤋
refinance your mortgage, there are good rates out there right now, you might save some money as well as solve your problem
2006-10-13 08:59:41 · answer #8 · answered by jenna8989 1 · 2⤊ 0⤋
I think it's called a quit claim deed.....you can call your mortgage company about this
2006-10-13 08:49:00 · answer #9 · answered by Brainiac 4 · 0⤊ 2⤋
Really interesting question, looking forward to going through the answers
2016-07-27 21:45:48 · answer #10 · answered by ? 3 · 0⤊ 0⤋