How to remove someone off of a mortgage & auto loan?

[nv54]

Kansas, USA
Thank you in advance community. I have researched the options to remove someone from these loans and have found refinancing or creating a trust. I don't fully understand or know if creating a trust will work and the family member in this situation can't afford the option of refinancing the home and auto. If it is of any relevance, the family members spouse has left the residence and currently is not making payments on either loan, but has possession of the auto. Any information or guidance is most appreciated. Thank you.

 

[HomeGuru]

Kansas, USA
Thank you in advance community. I have researched the options to remove someone from these loans and have found refinancing or creating a trust. I don't fully understand or know if creating a trust will work and the family member in this situation can't afford the option of refinancing the home and auto. If it is of any relevance, the family members spouse has left the residence and currently is not making payments on either loan, but has possession of the auto. Any information or guidance is most appreciated. Thank you.

**A: you would need to pay off the loans. A trust has nothing to do with financing and removing someone from the loans.

 

[nv54]

thank you! i do know the loans would total a sum over 90,000 so a payoff is not an option. divorce and some settlement within that may be the only option. thanks again for your time

 

[HomeGuru]

Ok, good luck then.

 

[KevinRoy]

Reply

Kansas, USA
Thank you in advance community. I have researched the options to remove someone from these loans and have found refinancing or creating a trust. I don't fully understand or know if creating a trust will work and the family member in this situation can't afford the option of refinancing the home and auto. If it is of any relevance, the family members spouse has left the residence and currently is not making payments on either loan, but has possession of the auto. Any information or guidance is most appreciated. Thank you.

Quitclaim won't do it. The remaining people on the loan must re qualify on their own in order to get the lender to release someone. This basically means "You have to refinance."

Sorry, but the lender based their decision to lend upon that person being responsible for the loan also. They won't let them off the contract that says, "I agree to pay..." without being certain (within underwriting guidelines, anyway) that the remaining people can make the payments.

 

[HomeGuru]

HUh, no one was talking about quit claim.