Few options for name-removal from mortgage
Posted on behalf of Michael D'Amico of D'Amico & Pettinicchi, LLC on Dec 13, 2013 in Property Division
Connecticut residents who are in the process of divorcing may be interested in what they can do in the situation of needing to have a name removed from a mortgage. Property settlement agreements that leave a house and its mortgage with one of the spouses often require that the spouse who retains possession of the property to refinance the mortgage and have the second spouse's name removed from the debt obligation.
If the property holding spouse does not follow through and have the second name removed, there is not very much that the other person can do. In some cases, the house may not be able to be refinanced because the debt is for more than the house's current market value. In addition, lenders may be reluctant to write a mortgage for just one income-earner.
Going back to family court and having the non-compliance addressed as a contempt of court action is possible, but likely not enforceable. Making phone calls and helping to secure a lender for the ex-spouse may be the only feasible action for the non-property holding spouse. The spouse has an interest to have his or her name removed to show that he or she is no longer responsible for mortgage payments and has no liability exposure to the property.
Real estate holdings may be one of the more complex types of assets that need to be addressed in a property settlement agreement. An attorney who is knowledgeable in the procedures required by family court may be able to assist the parties as they divorce and allocate their assets. An attorney may be able to assure that the paperwork is drawn up and filed correctly and provide input into what could be considered both a legal and equitable division of assets.
Source: FOX Business, "Ex Won't Refinance to Take My Name Off House", Justin Harelik, December 04, 2013