When it comes to securing a loan for a home, a joint mortgage is often the right decision. A joint mortgage is when two people are listed as borrowers for a loan. For larger loan amounts, joint mortgages improve approval chances due to combined income and assets—and can help you pay off your mortgage faster.
While there are many benefits, life can take unexpected turns. A joint mortgage may need to be dissolved due to death or divorce/separation. In some cases, the mortgage transfers to the surviving borrower, but this isn’t always guaranteed—especially during divorce proceedings.
Removing a name from a mortgage involves legal steps. Working with a mortgage broker is strongly recommended to guide you through the process efficiently.
At Mares Mortgage, we make financing your home simple. Here’s your complete guide to getting out of a mortgage.
Related: Questions to Ask a Mortgage Lender
A straightforward option—if financially possible—is to pay off the mortgage. This requires both borrowers' consent and the financial means to complete the payment. Once paid off, an attorney should help facilitate the process and ensure a reconveyance is issued. This document proves the loan is paid in full and the lien has been removed from the title.
Another option is to find a new co-borrower or co-signer. This is typically done through refinancing. The new co-borrower does not need to occupy the home—parents, for example, often co-sign for their children to help them qualify. Both parties must meet qualification requirements to refinance the loan.
You may ask the lender for a release of liability. If the remaining co-borrower can demonstrate they are financially capable of handling the payments alone, the lender may release the other borrower from the loan. Required documents usually include pay stubs, tax returns, and proof of creditworthiness.
Related: Reasons to Refinance Your Home
Filing for bankruptcy under Chapter 7 can discharge your obligation from the mortgage. The remaining borrower would take on full responsibility for the loan. This is typically considered a last resort and should only be explored with legal guidance.
Selling the home to pay off the mortgage is another option. It absolves both parties from future obligations and provides a clean break. Ensure your name is removed from all property records and mortgage documentation post-sale.
Refinancing allows the borrower who plans to stay on the loan to apply for a new loan in their name only. This person must qualify based on their own income, credit, and assets. A mortgage broker can help locate suitable refinancing options to increase approval chances.
Mortgage assumption means one party takes full responsibility for the existing mortgage, keeping the original terms (interest rate, loan term, etc.). Loans backed by the FHA or VA are usually assumable. Lender approval is still required, and an assumption agreement will be issued upon completion.
A loan modification adjusts the terms of an existing mortgage—often to lower the monthly payment. A lender may agree to remove a co-borrower if the remaining borrower proves they can manage the new terms alone. Most modifications are approved due to temporary financial hardship, which must be documented.
There are many valid reasons why someone might want their name removed from a mortgage. Choosing the right method—whether it's refinancing, selling, or loan modification—is critical. A professional mortgage broker can guide you through these options with clarity and ease.
Contact Mares Mortgage today to explore mortgage loans and financing solutions that fit your needs.
