Property - how can I remove my name from a mortgage?


#1

My spouse and I have separated and are less than 2 months away from filing for divorce. We have a house and a townhouse, both occupied by renters. In our separation agreement he stated that he would buy me out of the townhouse, had it appraised and based on the equity would pay me $5k, and I would no longer own the townhouse. However, he did not do his research and based on the economy, is unable to refinance because there is not 20% equity. Is there any other way to remove my name from the mortgage? I know I can get off the deed, but I want to be off the mortgage in the event he chooses to default. Or can we refinance based on the situation??


#2

You can’t refinance based on the situation, and the bank can not be forced to remove you from the mortgage. If you have a commercial loan there is a chance the bank may… but they have no reason to. In a separation agreement sometimes it may require the person refinance, or just accept responsibility for the debt, however they can’t force the bank to issue a new loan, and you maybe could later sue if he defaults, but if he is defaulting its probably b/c he doesn’t have money.


#3

The house will have to be re-financed, or the bank will have to agree to release you from the mortgage.