Oklahoma Divorce | Can I Remove My Name from the Mortgage?

The Quick Answer is: Probably not, but read on…

If you want to remove a name from an existing mortgage loan the mortgage loan must have an assumable clause. Most mortgages do not have an assumable clause.

Without the assumable clause, there is nothing you can do about taking your name off the existing mortgage loan.

The lender approved both of you for the loan and you signed the home loan documents together. With this, you are both equally responsible for repaying the loan.

How Can One Remove Their Name from the Home Loan?

The way to remove a name from the existing home loan is to refinance the loan in the name of the person who is keeping the home.

The person who is refinancing the home will need to qualify for the new loan on their own as all refinance loans are just new loans.

If the one who wants to keep the home cannot qualify for the new (refinance) loan on their own the home will need to be sold to a new owner, which will allow the existing mortgage to be paid off and this will remove both of you from the existing mortgage loan.

If Your Existing Mortgage Loan Does Have an Assumable Clause

If your existing home loan does have an assumable clause and you want to remove a name from the mortgage the person who is keeping the house must have the ability to qualify for the mortgage on their own, removing the other person from the responsibility of the repayment of the loan.

VA Loans with An Assumable Clause

Some VA home loans have an assumable clause, but in most cases, the assumable clause will state that only another Veteran can assume the mortgage loan. In addition, they too must qualify for the assumable loan.

Quit Claim Deed – Be Very, Very Careful!

One way to remove a person from any legal interest in a house is with the signing of a Quit Claim Deed.

However, signing a Quit Claim Deed does NOT remove the person who is signing the Quit Claim from the responsibility of the mortgage. The person signing the Quit Claim form will only be giving away any legal rights and ‘say-so’ to the property.

After you sign a Quit Claim Deed you will still be personally responsible for any existing mortgage loans on the house, and this can greatly limit your ability to buy a house again in the future.

When you sign a Quit Claim Deed on a property you can place yourself in a very precarious position, and it can potentially ruin your credit and your ability to buy another house for many years.