Release from Mortgage

[LincolnGirl555]

What is the name of your state? Nebraska
My husband and I owned a house for only 14 months before i moved out. There is hardly any equity and I am not asking for him to buy me out, I simply want my name removed from the mortgage. I have been told two different things by 2 different lawyers. 1. He must refinance by himself to remove my name - this will Cost him thousands in closing costs which he does not have 2. that my name can simply be removed as part of the divorce. Which is correct?

 

[imaqt]

First of all I know of many cases where the court orders either one person to buy the other out or a judge can order both parties to sell and split the cost/profit. Have you contacted the mortgage company and asked them how to remove your name from the mortgage?
Here is a site I refer people to often, it has quite a few basics http://www.divorcesoftware.com/splitgen/contents/legalgn_ne.htm

Also Nebraska is an "equitable distribution" jurisdiction. The spouses retain their separate property acquired prior to the marriage. All of the spouse's marital property, including any gifts and inheritances acquired during the marriage, may be divided, based on a consideration of the following factors: (1) the contribution of each spouse to the acquisition of the marital property, including the contribution of each spouse as homemaker; (2) the economic circumstances of each spouse at the time the division of property is to become effective; (3) the length of the marriage; and (4) any custodial provisions for the children. [Revised Statutes of Nebraska; Chapter 42-365].

 

[LincolnGirl555]

I do not feel it is necessary for him to buy me out - we purchased the house together before we were married and he provided most of the money for earnest money and closing costs. This offsets the amount of principle I have paid towards the house. He wants to keep the house and I do not have a problem with that. I simply want to remove my name for finacial responsibility purposes. Why did two different lawyers tell me two different things about how to get this taken care of?

 

[imaqt]

Why did two different lawyers tell me two different things about how to get this taken care of?

Because when lawyers see dollar signs they try to tell you something that you want to hear so you will pay them! The lawyer that said your ex could refinance that would cost your ex a bit of money probably thought you had an ax to grind with your ex and you would love to see him pay out. The other lawyer was probably hoping that he could rake you in by making it easy for you and maybe you would pay him to do your divorce decree.

Are you filing for divorce on your own or with an attorney? Like I said before call the mortgage company and ask what legal rememedies you can do to get your name off the mortgage.

 

[LincolnGirl555]

I didn't tell either lawyer which way I would like to see things done, simply asked how it would have to be done -- so neither should have really seen what they thought I wanted to hear. I would like to do this without an attorney because I cannot really afford to hire one. I have not officially hired one yet. I have contacted the mortgage company via email and they told me he would have to qualify for the loan by himself. I assume they would say this because that is how they prefer to have it done to protect themselves.

I don't understand how a lawyer could tell me that this is unneccessary. If I have them proceed assuming that it is simply a matter of removing my name, I am concerned we will run in to trouble later. Which way follows the law?

 

[JETX]

"Why did two different lawyers tell me two different things about how to get this taken care of?"
Possibly because you are asking the questions incorrectly.

There are TWO issues that you should be looking at, and the answers you have received are both correct, one for each issue.
1) Mortgage: The mortgage company approved the application after considering the credit histories and incomes from BOTH of you. They will not just release you from obligation to repay the note. That is why you were advised that he needed to refinance the property solely in his name. That will release you from any financial obligation. The only other alternative would be for the mortgage company to give you a written release (very unlikely).
2) Title: Your name can be removed from the title simply by doing a 'quit claim' transferring your title ownership to him (or someone else). This does not require any permission and very little cost (recording fees).

 

[LincolnGirl555]

I specifically asked them both - about removing my name from the mortgage as well as the title.

 

[JETX]

Do I understand you correctly that you now know what you have to do and why, but are just asking us to try to 'devine' why two attorneys may have answered you differently. If so, then we really can't answer that since we were not there to hear the questions asked, nor the answers received.

My answer stands. You CANNOT get released from the mortgage obligation as a result of divorce, and you can transfer ownership of the property.

You're welcome.

 

[stephenk]

removing your name from the title does NOT release you from any obligations under the mortgage agreement. If hubby does not maintain payments, the bank can come after you.

Can your hubby refinance based on his own income?

 

[LincolnGirl555]

I know that removing my name from the title does not release me from the mortgage responsibilities. I don't believe he will be able to refinance, although he has been making payments for the last 6 months on his own -- I don't believe the numbers will satisfy the mortgage company. Technically he can afford it, but I don't think they will see it that way.

I am simply confused by the two lawyers. Yes - I would prefer to simply be removed and be done. I do not necessarily want to sell the house because we are trying to be agreeable with each other -- he has given me some things in the house that I wanted. i don't want to force the sale of the house because he does want to keep it. We would both like to see this move quickly and easily -- selling the house would NOT be that, and him refinancing (if possible) will cost him thousands in closing costs which he does not have. It would be easier on both of us not to sell the house or refinance, but if I proceed with the lawyer who told me this is not necessary -- I do not want to get caught up in a lot of problems if we find out later that is not how it needs to be done.

 

[stealth2]

It's extremely unlikely that you can get off the mortgage w/o him refinancing - the mortgage company is not bound by your divorce decree. I would run from the lawyer who told you otherwise.