How to Remove a Spouse From an Existing Mortgage Without Divorce

The Internet is flooded with information about how to remove a spouse from an existing mortgage in case of divorce. This article will focus on how to remove a spouse from an existing mortgage without divorce.

Things You'll Need

• Quit claim deed

Instructions

1. There is one simple way to remove your spouse from the mortgage and it is called a quit claim deed. This is the ideal way to transfer property between parties who trust each other because it is an easier and less expensive method to transfer title. When you opt for this method you will not need warranty deeds, escrow companies, lawyers and title companies.

2. You can use a quit claim deed to transfer the property title from individual ownership to a trust that you will control, and add or remove your spouse from the title. An executor can use this method to transfer title to an elected family member in an estate settlement.

3. Quit claim deeds are also common in real estate sales between parties bearing no relationship to one another, but they can be risky, so do your research very thoroughly before you venture into this area. You may want to use a title company, escrow company and lawyers to do the title search, process the warranty deed and generally make sure that everything is on the up and up. Distressed sellers also use this method to avoid foreclosure. In this circumstance, the title is transferred to a buyer who assumes mortgage payments.

4. When removing a spouse from the existing mortgage, it is the equivalent of granting a sole mortgage to the remaining partner. Normally lenders tend to be more flexible in this area when it involves divorce or separation because these circumstances are common. However, when there is no divorce you will have to show adequate proof of your ability to pay and give just cause as to why you wish to remove your spouse from the existing mortgage.

5. Call your lender to determine the income level required to pay the outstanding mortgage. Also find out the documents you will be required to bring to prove income level. Most often, it is three current pay stubs, a letter from the courts and a no objection letter from the spouse.

Tips & Warnings

• If you face difficulty in removing your spouse from the existing mortgage with your present lender, you always have the option of refinancing the property with another lender.

• Never miss mortgage payments while trying to remove a spouse from a mortgage. This can result in a bad credit score.

References

• US Legal Definitions
• Mortgage Fit

Resources

• what is a quit claim deed?