How to Remove an Ex-Spouse From Loan After Quitclaim Deed

Removing someone from a deed is sometimes much simpler than removing them from a mortgage.

Quitclaim deeds are legal documents that either transfer ownership or change ownership on a piece of real estate. Often, these documents are used to put parties, such as a son or a daughter, onto a land title after the property has been purchased. Removing someone from a title is a relatively simple task with a quitclaim, but removing someone from a loan is a bit more difficult.

Instructions

1. Confirm that the quitclaim deed has been filed with the local registrar of deeds. The document is not considered legal until both parties (the person remaining on the title and the person being removed) have signed the quitclaim, it has been notarized by a licensed notary public and recorded at the county's register of deeds. You should be able to look up the document online. If not, go to the registrar of deeds office and have an abstracter help you find the document. Make sure it has a stamp that confirms it's been recorded.

2. Begin searching for a lender. While an ex-spouse may now be off the title of the house, he or she is still on the mortgage. To remove the spouse from the loan, you'll need to refinance the loan entirely. There is no way around this. Begin researching FHA-approved lenders -- use the link in the Resources section to find one. FHA lenders can offer government backed loans that require only minimal downpayments.

3. Ensure you have enough income to carry a loan on your own. While your ex-spouse may be off the title, you were likely approved for the loan with each other. This means you must subtract your spouse's income from the debt-to-income ratio calculation: the amount of obligations (per month) divided by the amount of income (per month). So, if you have $2,000 in bills (including the mortgage) and a monthly salary of $4,500 (before taxes, usually), your DIR is 44 percent -- a rather high ratio. Speak with your lender for their restrictions on DIRs.

4. Consider putting someone else on the mortgage and the deed to help with mortgage payments if your income alone will not support the new loan. While it's not advisable to put a girlfriend or boyfriend on the house (as they would now own half the property), you might consider a family member who lives with you or a new spouse, if applicable.

5. Refinance the mortgage without your ex-spouse on the loan. Be sure to send all canceled loan paperwork to your ex-spouse for his or her records. Also, make sure he or she has a copy of the quitclaim deed for their records.

References

• MortgageFit: Deed, Quitclaim and Property Transfer FAQs
• Envision Lending Group: Quitclaim Deed Refinance

Resources

• U.S. Dept. of Housing and Urban Development: FHA-approved lenders