by haytham fox
Question by Anon: What do I have to do to remove someone off my mortgage?
I just closed on my house on the second of February and the person that I signed the mortgage with decided that they weren’t mature enough to take on the responsibility of owning a home. I have my loan through USDA Rural Development and I am wondering what my options are such as if I can do a loan adjustment or do I have to refinance the loan?
Answer by Phillybad
You were qualified for the loan with the other borrower, so you would have to refinance the loan to get the other persons name off the loan. Now, sometimes you can remove the persons name from the deed, but it remains on the mortgage note. I would call the agent that closed your loan and ask them what you can do. Remember, the other person will still have claim to half the house even if you pay the mortgage, so you have to resolve this matter. Good Luck!
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The downside of USDA is there is a recapture, so if you need to refi to get your co-borrower off this early, there are going to be penalties. And you will have to qualify for another loan. Good luck.
The only way to get someone off the mortgage is to refinance. However, I wouldn’t worry about the mortgage. I would worry about the deed. This person still owns 50% of the property, even if they never pay you a penny.
I would offer to pay them $ 500-$ 1000 to have them sign a quit claim deed removing themselves from the deed. As long as you keep up the payments, there will not be a problem.