Many divorced home owners find it very difficult to remove their name from their mortgage agreement. After buying out the equity stake in the house, the only option that many people have is to refinance according to a New York Family Lawyer. There is however, a much easier option that can help you to avoid the costs and difficulties with refinancing.
Refinancing can actually cost as much as 3-6% of the outstanding balance on the loan. There is however an easy way to avoid this cost. That’s to ask your lender to remove the other partners name from the loan which will leave the loan in only your name. Manhattan and Queens lawyers try to make their services affordable for clients who may not be millionaires.
While this sounds very easy, it’s not actually something that is possible with all lenders. This is known as a release of liability and normally they will need to do a separate credit check on both parties at the time of taking out the loan. They will also normally require both people to agree the changes which could be difficult in some divorces.
The NYC Family Lawyer mentions that this problem is very common and can be messy at times. Many lenders do not have any reason why they would want to take the other lenders name from the loan note.
It’s beneficial to both parties to have the name removed. This will protect the credit report of both. If the spouse did not pay other debts and the name remained on the loan then a lien could be placed against a property. In a similar way, ay missed payments on the mortgage could also damage the credit rating of your ex.
Normally when divorcing the property will either be sold, or one person will buy the stake from the other one. This will need to be completed within a few months. It’s also normally the case that the other party’s name will need to be removed from the mortgage within a year.
Removing your spouse’s name will typically cost between $300 and $1,000 depending on the lender you are with. You will also need to pay an application fee and the process is normally expected to take a minimum of one month.
If you are going through a messy divorce then a New York Family Attorney will be able to assist you. A New York Family Attorney will allow you to remain living in your family home and change the name on the loan. The Office of Stephen Bilkis and Associates can offer you support and guidance as well as a free consultation when you contact us at 1-800-NY-NY-LAW. We have offices in N York City, including Brooklyn, Queens, Manhattan, Staten Island and The Bronx and in Nassau County, Suffolk County and Westchester County.