Any modification to an existing co-mortgage loan can seem challenging. For example, you might want to remove your or your borrower partner’s name from the mortgage. All you have to do is to write a letter to the corresponding loan company to process your request.
A sample letter to remove name from mortgage might be helpful to understand how you can address the loan company and present your request. Let’s check out how you can write a letter to remove your name or your co-mortgage borrower’s name from a particular mortgage loan.
How Can You Remove a Name from a Co-Mortgage Loan?
You should check out what possible ways are available to remove your or anyone else’s name from a co-mortgage loan before you jump to a sample letter to remove name from mortgage.
Typically, a few legitimate ways can help you to withdraw your or your mortgage partner’s name from the mortgage loan. They are:
- Loan assumption
- Loan modification
- Refinance the Mortgage
- Quitclaim deed
Among these 3 processes, loan assumption is the simplest way to remove your name from the mortgage loan. It also offers you full responsibility for the mortgage and removes the intended name from all the connecting documents.
However, a loan modification request permits you to request a change in the interest rate. On the other hand, a quitclaim deed lets you legally transfer interest in real estate as a grantor to a grantee.
Let’s revise these terms a bit more before checking a sample letter to remove name from mortgage loans:
Loan Assumption
A loan assumption gives you the easiest way to remove your name from the mortgage. You can request that your lender erase a particular name from the mortgage if multiple names are on the respective document. Asking your lender to offer you a loan assumption can do the job.
What does a loan assumption do, by the way? It gives you full responsibility for the mortgage loan and eliminates others from its documents. A loan assumption is the quickest way to make your wish come true. Other parties must request the lender to release them from the mortgage liability.
However, many lenders don’t agree to go for a loan assumption. Lenders can’t chase you for payments if the responsible parties refuse to repay the mortgage loan. Therefore, you can ask your lender if they accept your request.
Loan Modification
A sample letter to remove your name from a mortgage can include a loan modification request. Remember that a loan modification is almost similar to refinancing a mortgage loan. However, you can request to bring some changes to the terms and conditions of the loan with a loan modification.
If your lender accepts your request for a loan modification, you can ask the authority to remove your or anybody else’s name from the mortgage loan. Besides removing a name from a co-borrower mortgage loan, you can request your lender to change the interest rate.
Undoubtedly, you have to provide legal documents to support your request. For example, you can submit a legal separation or divorce document to convince the loan company that you want a modification for obvious reasons.
Refinance the Mortgage
Another effective way to get your name removed from the mortgage is to refinance the loan. Refinancing the mortgage will remove all the names from the mortgage loan. In addition, the lender will assign only one single owner-borrower for the mortgage.
On a contrary note, you might not opt for a refinance of the mortgage any time you want. For instance, refinancing the mortgage will let you apply for a new home loan by repaying the last mortgage. So, refinancing the existing mortgage will force you to pay out the co-borrower if you want the co-borrower’s name discarded.
Otherwise, you must refinance your share and withdraw your liabilities from other joint accounts and mortgages. However, you must possess the following things to refinance your mortgage:
- Acceptable credit
- Equity
- Steady Income
- Considerable debt-to-income ratio
Quitclaim Deed
Will you write a letter to remove your ex’s name from the mortgage? Probably, you don’t want to refinance the mortgage. We have an easier way out for you. A quitclaim deed will help you to solve the situation and legalise your transfer to a real estate account.
So, a quitclaim deed is a legal document that permits you to transfer interest in real estate as a grantor to a grantee. When can you select a quitclaim deed to remove a name from the mortgage loan? You can go for a quitclaim deed in situations like separation or divorce.
To issue a quitclaim deed, your ex-spouse or partner must sign the document before a notary. After your ex-spouse signs the document, you can withdraw your name from the mortgage loan.
How to Write a Letter to Remove Your Name from a Mortgage Loan?
A sample letter to remove name from mortgage loan is highly useful. Still, we have answered some common questions that might pop up in your mind. For example, whom should you address to request name removal from your mortgage loan?
You can directly address the loan company’s name and not anybody or designation in general, such as manager, executive, etc. Moreover, ensure that you mention the address of the loan company. You can search for the address online or find it on the envelope of the loan company.
What documents do you need to remove your name from the mortgage loan? You can contact your lender to learn which documents you must submit for the request. Additionally, you should have the loan account number to readily draw the lender’s attention to your request.
Besides this, you can ask the lender whether you are eligible to remove your name from the mortgage loan or not. It’s better to ask for an explanation if the lender declares you ineligible. Let’s review a sample letter to remove name from a mortgage.
A Sample Letter to Remove Name from Mortgage
[Your Name]
[Your Address]
[Date]
[Name of the Lender/ Loan Company]
[Lender or Loan Company’s Address]
Re: A Request to Remove a Name from the Mortage Loan Account [Loan Account Number]
Dear [Lender’s Name],
I hereby declare that I have a joint mortgage loan account with my ex-partner, and here’s the account number [the loan account number]. We have decided on a mutual separation, so I want to withdraw my name from the mortgage loan account.
So, please review this account and let me know whether I am eligible to get my name removed from the mortgage and all its legal obligations. Also, please provide me with an explanation along with the following if you find out that I am not eligible:
- Why am I ineligible to get my name removed from the mortgage?
- How can I qualify for the removal?
- What is your recommended policy to withdraw a name from the mortgage loan?
- What documents are important to file a claim?
- Is there any chance that there can be modifications to these requirements any time soon? Will there be any future changes to me after I get released from this obligation?
Please update me regarding these queries so that I can take the necessary steps. In addition, you can let me know when I can be eligible to get my name removed from the mortgage and its obligation.
I hope to hear from you soon regarding this matter.
Best regards,
[Your Name]
[Your Contact Info]
In Conclusion…
You can make changes to the sample letter and input your information accordingly. A sample letter to remove your name from a mortgage will make the job easy for you, no doubt.
However, your lender might suggest a cosigner release, selling your home, paying off your home, etc., instead of removing your name from the mortgage loan. Therefore, discuss this matter with your financial advisor before committing to any suggestion from the lender.
