How to Remove an Ex-Wife from a Mortgage Loan

To remove a cosigner from a mortgage, you must refinance the property.

The only way to remove a former spouse from a mortgage debt is through refinancing the original mortgage. The spouse is placed on the mortgage debt and deed until a new debt and deed are created. This can present a problem, especially if the former spouse's income was used to qualify for the loan. Additionally, until the former spouse is removed from the debt, he is not only still liable for the loan, it is still listed on his credit report.

Difficulty:

Moderately Easy

Instructions

Things You'll Need

• Mortgage loan application
• 2 months of bank statements
• 2 months of pay stubs
• 2 years of tax returns
• Appraisal
• Divorce decree

1. Fill out a mortgage loan application called a Uniform Residential Loan Application with your mortgage lender. It will ask for your full legal name, date of birth, address, Social Security number and employment and income information.

2. Provide your lender with pay stubs for two months, all pages of your two most recent bank statements, tax returns for the past two years, a copy of your divorce decree and a check to pay for the appraisal.

3. Allow the lender to order an appraisal on the house and check your credit report and credit score. Once this has been done, fill out all disclosures and allow the lender to process the paperwork.

4. Sign the closing paperwork and request a copy of the new deed that is filed in only your name. Follow up with your former spouse to inform him of the refinance. Tell him to check his credit report in about 60 days to ensure that the mortgage debt has been removed from his credit report.

Tips & Warnings

• Prior to refinancing, check your credit report and score. To qualify for the best rates, you must have an excellent credit score. Pay down your credit card balances to less than 30 percent of their limits and ensure that there are no errors on your credit report.

• If you used your former spouse's income to qualify for the original debt, you may have trouble qualifying for the new mortgage. Prior to negotiation on the house with your former spouse, it may be a good idea to have both spouses get pre-qualified for a mortgage to see if either can qualify for the debt on their own.

References

• Federal Reserve: A Consumer's Guide to Mortgage Refinancing
• Expert Law: Dividing the Marital Home in Divorce