A mortgage is a legally binding contract, so it is not possible to remove a name from the loan documents until the mortgage has been paid in full. According to the San Francisco Gate Home Guides, the mortgage loan can be refinanced in the name of the person who wishes to keep ownership of the home, or the property can be sold to settle the debt.Know More
Until the mortgage loan is refinanced or sold, both parties who signed the documents and were approved for the loan are equally responsible for making payments per the mortgage terms, according to Mortgage News Daily. Regardless of who is living in the home, both parties are subject to collection efforts if the payment terms are not adhered to, including negative credit reporting, wage garnishments, lawsuits and tax liens in both names.
As noted by the San Francisco Gate Home Guides, if the property is refinanced and a single party takes responsibility for the payments, the co-signer on the original loan must sign a quit-claim deed in order to be removed from the deed. The quit-claim deed is then recorded in the county where the property is located. The original co-signer must also surrender ownership rights to the property. For this reason, particularly in cases of divorce, a judge typically orders the home to be sold in order to relieve both parties from the ongoing obligations.Learn more about Credit & Lending
To get off a joint mortgage, the other party needs to agree to release you of the financial responsibility or the argument can be taken to court for a judge to decide. At a tactical level, the mortgage must be refinanced to remove one of the two parties from it.Full Answer >
PMI stands for private mortgage insurance, and it protects the lender from loss should the borrower default on the mortgage loan, according to Bankrate. Lenders require PMI if the down payment on a mortgage does not exceed 20 percent of the appraisal value or the sale price of the property.Full Answer >
To calculate a Federal Housing Administration mortgage insurance premium, first determine the loan amount, and then calculate the upfront mortgage insurance premium and the monthly premium, according to Joey Campbell for SF Gate. The upfront premium of 2.25 percent is usually financed. The monthly mortgage insurance premiums are paid along with the mortgage and property taxes.Full Answer >
Applying for a small business loan entails educating yourself on the process, gathering documents and filling out the application. Follow the lender's instructions carefully, ase an incomplete application or missing documentation can cause the lender to deny the loan.Full Answer >