Divorces are complicated. Oftentimes, spouses have to split everything from bank accounts to furniture. While it's generally simple to divide personal property, deciding how to handle a joint mortgage is rather complicated. Whether you're getting a divorce or want to remove another person's name from a deed, this process involves more than simply calling the mortgage lender and making a request.
Decide who'll maintain the residence. Order a copy of your credit report and carefully assess your personal finances. Based on this information, determine whether you're in a financial position to afford the home without a co-debtor. If not, your co-debtor can take ownership of the home.
Refinance the mortgage loan. A mortgage refinance is the only way to take someone off a deed. After deciding who will keep the property, contact your home loan lender and complete a mortgage application. The person who retains the property will have to qualify for a new loan.
Bring a copy of the divorce decree to closing. If you're divorcing a spouse, lenders will ask to see a copy of the divorce decree. Bring this document to the loan closing. With marriages, this document is required to take a co-debtor or spouse off the deed.
Sign a quit claim deed. The person removing their name from the deed must sign a quit claim deed. By signing this document, the person gives up all ownership to the property and transfers all interest of the property to their former co-debtor.
Refinances are expensive. You'll typically have to pay an appraisal fee, an application fee and closing costs. To save money on a mortgage refinance, consider refinancing with your current lender. They may waive some of the fees.