If you are partnered with a co-mortgage borrower and want to remove your name or the other person’s name from the mortgage then you will be happy to know that it is possible to remove a name from a mortgage. You have to submit a request to the lender to remove the name from the mortgage.
Key Takeaways
- There are quite a few ways you can remove a name from a mortgage like a loan assumption, loan modification, quitclaim deed, etc.
- A loan assumption is the easiest way you can remove your name from the mortgage
- A loan assumption will give you full responsibility for the mortgage and removes the other from all the documents
- A loan modification allows you to request an interest rate change
- A quitclaim deed is a type of legal document that allows you to transfer interest in real estate as a grantor to a grantee
Remove Name from Mortgage Sample Letter
| [Your Name] [Your Return Address] [Date] [Loan Company Name] [Correspondence Address on Your Bill] Re: Request to Remove the Name from Mortgage [Account number for the loan, if you have it] Dear [Loan Company Name]: I am writing to request that I be released from my obligation to repay any loans associated with this account. Please conduct a review of this account and determine my eligibility to be released from my obligation. If you determine that I am not eligible, please provide an explanation, including the following: -For what reason(s) am I ineligible to remove from the mortgage? -What steps do I need to take to qualify for the removal? -What is your current name remove policy? -Do you anticipate modifying these requirements in the future? Will any future modifications apply to me when I seek to be released from this obligation? If I am unable to exercise this option at this time, please update/annotate this account or accounts to reflect that I intend to do so as soon as possible. Please contact me at the point in time at which I am eligible to be removed from the mortgage. In addition, if you are unable to provide any of the information or documentation I have requested or otherwise cannot comply with this request, please provide an explanation. Thank you for your cooperation. Sincerely, [Your Name] [Your Contact Info] |
How to Remove a Name from a Mortgage
Under some circumstances, it is possible to remove a name from a mortgage. Below are the ways you will be able to remove your name from a mortgage –
- A loan assumption
- A loan modification
- A quitclaim deed
- Refinance the Mortgage
1. A Loan Assumption
This is the easiest way you can remove your name from the mortgage. If there are multiple names on the mortgage then you can tell your lender that you want to take over the mortgage completely. So, you can ask the lender to provide you with a loan assumption. A loan assumption will give you full responsibility for the mortgage and removes the other from all the documents. This is the fastest way because refinance process needs more time.
Here, other parties have to request a release from liability. If the other party refuses to pay the loan then a release from the mortgage will prevent the lender from going after you for payments. Therefore, many lenders don’t agree with a loan assumption. So, you should contact the lenders about the loan assumption and see what they say about it.
2. A Loan Modification
You can also request a loan modification and remove your name from the mortgage. A loan modification is quite similar to refinancing but in a loan modification, you can request changes to the terms of the loan. If the lender agrees to a loan modification, then you can request the lender to remove the name from the mortgage. Another benefit of a loan modification is you can request an interest rate change. You have to provide documents like divorce or legal separation to convince the lender for a loan modification.
3. A Quitclaim Deed
This is the easiest way you can remove your ex’s name from a mortgage without refinancing it. A quitclaim deed is a type of legal document that allows you to transfer interest in real estate as a grantor to a grantee. If there is an incident like divorce or separation then you can request a quitclaim deed. Here, your ex-spouse has to sign the quitclaim deed in front of a notary. Once your ex-spouse gives the signature, the name will be removed from the mortgage.
4. Refinance the Mortgage
This is another great way you can remove your mane from the mortgage. Here, you have to refinance the mortgage under a single owner-borrower and remove other names. This process will allow you to apply for a new home loan by paying an existing mortgage. In this process, you have to pay out the co-owner whose name will be removed from the mortgage. You can also remove yourself from the mortgage by refinancing your share as well as from any joint and several liabilities for that particular mortgage. But, you should keep in mind that you must have acceptable credit, debt to income ratio, equity, and income to refinance the mortgage.
FAQs about A Sample Letter to Remove Name from Mortgage
How do I remove my ex from my mortgage?
If you want to remove your ex from the mortgage then you have to fill a quitclaim deed. In a quitclaim deed, your ex will give up all rights to the property by signing the deed in front of a notary. Then you have to notarize the document and once you do it, it will remove your former partner’s name from the mortgage.
Can a co-borrower be removed from a mortgage?
Yes, it is possible to remove a co-borrower from a mortgage. There are various ways you can do it. They are –
- A loan assumption
- A loan modification
- A cosigner release
- A quitclaim deed
- Refinance the Mortgage
- Sell your home
- Pay off your home, etc.
How do I get my name off the mortgage after divorce?
Some of the easiest ways to get your name off the mortgage after divorce are –
- A quitclaim deed
- Refinance the loan
- Pay off the loan
- Refinance the loan
- Sell the property, etc.
Can a joint mortgage be transferred to one person?
Yes, a joint mortgage can be transferred to one person and the process is known as a “transfer of equity.” However, you will need permission from the lender before you can change the name of a mortgage.
References:
https://www.signnow.com/fill-and-sign-pdf-form/29973-home-ownership-letter-form
https://files.consumerfinance.gov/f/201404_cfpb_inquiry-letter_how-to-be-released-as-cosigner.doc
Last Updated on November 4, 2022 by Magalie D.
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.
