Question by sparkles: Anyone ever hear of a realease of liability from a mortgage? I am divorced and my ex can’t refinance.?
The mortgage is in both of our names and the mortgage company is sending me the proper paperwork for this release. Does anyone know how this works?
Best answer:
Answer by mortgageguru
If you qualified with both of you at the time…both are responsible. If the husband cant on his own qualify for the refinance, the lender may want the wife to stay on the loan. What you are saying doesnt make sense. If the ex husband cant refinance, then they would want the wife on the loan still. If he can qualify on his own, they the wife can get a release from the responsibility of the loan. Basically, the wife needs to know that a release from the liability just means she will not be responsible for the debt of the mortgage…a great idea if she no longer lives there. e-mortgagenetwork.com
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Yes, I went through it several years ago.
First your ex must be able to carry the mortgage on his own. If the bank doesn’t like your ex’s financials, they may not release you. If they accept the ex’s financials, you will be released completely and the bank can’t come back on you.
The process is fairly easy, just filling out some paper work and generally showing your divorce decry that says the house is to go to your ex or some split of the assets where the house’s equity is part of the ex’s asset. But they may not require this if the divorce is final and the ex easily qualifies.
Banks don’t like to release one mortgage holder because with two names on the mortgage they have more potential to collect. But this is exactly why you want out. If your ex doesn’t pay on time, you are liable. It is worth bunches for you to get out of the mortgage with your credit rating in tact.
The other option would be to sell the house and pay off the mortgage, but you didn’t throw that out as an option.
If you are saying that the bank is sending you the paperwork, that would indicate that the bank is willing to release you. So does that mean you are walking away from the house?
What of the equity that you (both) earned while you were married? If that was settled in the divorce (ie: you got money, he got the house) then it sounds like you are getting off of the mortgage and the deed on the property. This sounds like a pretty big deal that should have been (or was) included in your divorce. My advice: get your divorce papers together, take the letter from the bank and go to a real-estate lawyer (or your divorce lawyer if you are still in contact). This should cost you ~$100, but you do not want to be on the hook for the mortgage (or the property taxes if the deed was not changed), that could cost you thousands if your Ex screws it up. This should be done right, get a lawyer to help you, not us anonymous bums giving free advice on Yahoo.