I am a co-owner on my son's mortgage. How do I go about removing my name from the ownership and mortgage loan?
Answers | 4
You will need to refinance this loan with a new one in just your son's name. This is the only way that your name will come off the mortgage.
Typcially that is the case, however some lenders depending on loan type and acutal owner/investor of Loan. With the lenders permission, if your son has been make timely payments for a substantial amount to time with no mortgage lates and can qualify for the payment on his own, they may consider...it may not have to be a full refinance yet more of streamline process.... Check to see if your lender particpates with HARP as well.
Hi Clark, I agree with Mike that the most likely solution is for your son to refinance the loan into his name, based on his credit, income, and debt ratios. You would simply sign a quit claim deed giving him your interest in the property. It is unusual/unlikely these days for lenders to remove a borrower from a loan, since loans are sold on the secondary market as Mortgage Backed Securities, and the servicer who is collecting the payments typically doesn't have the latitude to alter the terms of the existing loan, including the obligated parties. Hope that helps, I write loans nationally, let me know if you have further questions. Ted
Son refinances alone or you both sell the property and pay off the loan