There are so many loose ends that need to be addressed with a divorce. Some of them can be overlooked, even by some divorce attorneys. One of the most common is removing a person’s name from a home deed. Many couples in Salt Lake City buy a house a with dreams of living happily ever after. But what happens when the marriage ends in divorce? It can sometimes get complicated, especially when both parties have their name on the mortgage and deed.
Here is a common scenario. You filed for divorce about three years ago. During that time, the court ruled your former spouse can finance the home at their convenience to get you off the deed and loan. Can you force your ex to to remove your name? If you are still on the deed, does your former spouse require a signature to refinance? Here are some solutions.
Notify the Mortgage Lender
The first step is to contact the mortgage lender. Let them know your former spouse will be taking over full responsibility of the mortgage after the divorce. Ask for a loan assumption to ensure your ex-spouse will assume full responsibility of the loan and remove you from the promissory note. By requesting a loan assumption, you are allowed to leave the loan, while keeping it intact. Your former spouse will then maintain the interest rate and balance for the remainder of the loan.
Request a Release of Liability
After you have notified the mortgage lender, ask if you can obtain a release of liability. If your former spouse is unable to repay the loan, the release will eliminate your obligation. A release of liability has numerous benefits. Should you miss any payments or have any significant liability, your credit is protected. Keep in mind, not all lenders will grant a release. Before it can be granted, the lender will carefully examine your former spouse’s ability to repay the loan on their own. The lender may also need to seek approval from a third party investor
Remove Your Name from the Title
It is also important to remove your name from title. It can be done by applying for a quitclaim deed or interspousal grant deed. It declares you no longer have interest in ownership of the property and your ex will assume full ownership responsibility.
Most loan assumptions cost 1 percent of the loan amount. You may have to pay the lender between $300 to $1,000 along with administrative fees that range from $250 to $500. Removing your name from a joint mortgage may seem like a tedious process. But it can save you plenty of headaches down the road.
A Salt Lake City Divorce Attorney Can Help
Divorce can sometimes get messy. Among the most complicated issues are resolving joint mortgage loans. Although a divorce attorney may not be the first place to ask for real estate advice, they can point clients to the right direction. Attorney Emy A. Cordano is more than just a Salt Lake City divorce attorney. She is a legal advocate who is committed to helping her clients move on with their lives long after divorce. She and her legal team can help address everything from basic questions about family to complex divorce issues that need to be resolved. To learn more, contact her office today and schedule a consultation to discuss your case.