How to Remove Your Ex from the Mortgage
Even though you might feel free- as a matter of fact, you will be legally free- from your ex, the process that comes next is known for being extremely awkward and too long. Moreover, there are couples that decide not to divorce even though they don’t love each other just to avoid this process. However, in the real estate world, the union between you and your ex will not be removed unless your take her or him out of the mortgage.
Not even in trial
Mortgage terms that were established when you and your spouse decided to opt for it remain liable. So, both you and your ex will have to face the lender if a default happens. Both credit scores will suffer a huge lost if this happened, so let business be business. If you don´t want to go through that and you are totally sure that your ex will not be a good sport, then the only possible way is naming her/him off the mortgage.
Here we give you four options you may choose if you´re looking to remove your ex from your mortgage. Some of them are really quick and easy, some require patience and cooperation from both sides. It all depends on how your communication with your partner is.
Refinancing the loan to your name
Even though it takes some hard work, this is known to be the best option. If your stats have enough equity, credit, and income, you will be able to refinance. The hardest part of this is that you will need to prove the lenders that you are able to pay the required, so this may lead to a lot of paper work to support it.
Of course, this can only be possible when your ex accepts to give you the house. If not, then you should look for another solution.
Sell the house
This is easiest and most fair way out. You can get into an agreement with your partner if some of you paid more for the house. However, this may be harder than it sounds if you have a bigger debt than what the house is worth.
Remember that you can always opt for a short sale. The property is sold but the net proceeds do not cover all the liens against it. Even though it has some setbacks, many markets have recovered from it.
The loan assumption
This is also known to be one of the simplest solutions. It consists in informing the lender that you are taking over the mortgage and that you want a loan assumption. That way, you will be taking full responsibility and remove your ex from the note.
Getting an FHA or VA streamline refinance
This type of mortgage lets you take a borrower off title and also reduce the size of your monthly payments. You must prove that you assumed the loan more than six months ago in order to get it.