Quit Claim Loan (foreclosure, mortgage, refinance)

[ginamie4you]

Me and my husband bought a house last November. We are both in the title and we are both on the loan. Is there a way I could remove my husband's name on the loan. We both have good credit scores but in case something happens to our house eg foreclosure, I want someone to be left with a good credit. Have anyone heard about this quit claim or do I have to refinance the house under my name only.

[EscapeCalifornia]

Was your combined income required to obtain the loan? I can't imagine the bank releasing him from the liability unless you reapplied and proved you qualified for the loan on your own.

[ginamie4you]

I should have applied on my own coz were making good money anyway. I think the only way I van take him out from the loan is to refinance the house on my own.

[IloveOC]

Talk to your mortgage holder - they may be able to do a qualifying assumption, which would qualify the one person who wants to be responsible for the note. They usually don't have as many extra fee's involved as if you do a whole new refinance. Depends on whether the loan has an assumable clause or not. I did one for a friend of mine who wanted his ex-wife off so she could buy her own house. I actually told him what to do and walked him thru the whole process because it was in his best interest. I could have refinanced the loan but it would have cost him over $3500 in closing costs and no sense in rolling all that back into the new loan - when the bank did it for $700. But he did need to meet all the income and credit guidelines the same as if he were buying a house.