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Getting a Name off a loan without a refinance

I purchased a home with my wife several years ago I am now getting a divorce and my wife wants her name off the loan. We are upside down on the house currently and the interest rate is high and I can not afford to refinance. Is there a way to take her name off the loan without refinancing, I have been making the payment for the last year without her income. If this isn't possible anyone have any advice. by MikeRamsey from Los Gatos, California. May 18th 2010 Reply


Gregorio Denny (GVDenny)
#254 ranked lender in California - 380 contributions

Unfortunately, this is a common situation these days and there is actually one way to do this. If your loan is owned by Fannie Mae or Freddie Mac, you may have options depending on how far upside down you are.Both Fannie Mae's Du Refi Plus and Freddie Mac's Open access, allow for the the removal of a co-borrower subject to the following: "Borrower being removed from loan must also be removed from deed Remaining borrower(s) must provide evidence of 12 month payment history from own funds. "Feel free to contact me for more info on these programs and to see if you qualify. Gregorio Denny WeFixRates.Com

May 18th 2010
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James Haro (alamomtg)
#206 ranked lender in California - 2 contributions

You have not mentioned what type of loan you have. If your loan is an adjustable rate loan that is not currently in a fixed rate period, the loan may be assumeable. You may want to contact the loan servicing department of your lender if you meet these requirements and request a loan assumption package. James 510-708-1872

May 18th 2010
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Christopher Arco (1stNationwide)
#3 ranked lender in California - 46 contributions

A bit limited on this one, you may either sell or refinance the loan. The Note was secured using bother persons socials, so a re write or a pay off are the only options. You can however remove the person from Title, but they will still remain as a responsible party to the loan.

May 18th 2010
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