when a married couple files for divorce, if ordered by the judge can one of the parties sign off on mortgage?

Question

Can one person "assume" the mortgage without re-financing? If ordered by the courts judgement that the home stay in one name only, is the written judgement enough for the other party to submit to title holder to remove name and all such financial responsibility?

Answer 1

Well, if the mortgage company wants to allow it they can. A judge cannot order the mortage company to do anything. Most likely the mortgage company will require you to refinance, as there are a lot of changes to be made. Interest rates, etc may change. Also, the person keeping the home will have to pay the other party 1/2 the equity you both own in the home.

But, no, a judge cannot order the mortgage company to let one person off the mortgage without refinancing. Before you were dealing with two incomes, two credit reports, etc. Now, since they are only dealing with one, the mortgage company may want some changes made to the mortgage. Rightfully, the mortgage company can determine that they will not finance the home with only the one party. If you are keeping the home, have somewhat questinable credit, and don't make much, they may not want to do business with you. Or, they may want a higher interest rate.

That is just the way it works. The judge will order you two to split everything, and who gets what. They cannot tell a private business what they are going to do with the money they lending people.

Answer 2

The judge can order you to execute a quit-claim deed relinguishing your rights to the house, however, that does not relieve your legal obligations to the mortgage. The only way to do that will be to refinance so that only his/her name is on the mortgage. There may be an addendum that can be done depending on your mortgage, if you can show them the court order or divorce papers, but not to my knowledge. You would have to contact the mortgage company to find out for sure.

Good luck

Answer 3

The above are correct. And heaven help you if your ex doesn't refinance before having the house foreclosed on. My sister is finally (9 years later) climbing out of the hole her ex left her in when he stopped paying on the house which he was awarded by the court.