Removing your name from a mortgage loan

Property is jointly owned by siblings, both names are on the mortgage loan. One sibling wants to move out but she is financially bound to the loan. The loan was approved based on the siblings financial information together, now the other sibling didn’t qualify for the amount of the original based solely on his financial information alone by the original loan company still he managed to qualify for a loan through other lending company. Is this possible? How can the other sibling disassociate herself from the original loan? What would be the proper course of action? Selling the property?

Asked on September 7, 2017 under Real Estate Law, Maine


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

A mortgage is a contract. Like any other contract, it may only be modified--including to remove one party from it--with the consent of *all* parties to the contract. So you would need your sibling *and* the bank to agree to let you off the loan, which they will never do: releasing you from the loan does not help them (especially the lender), but rather hurts them by eliminating a person who can held accountable for (i.e. be required to pay) the loan. And if you can't get both the bank and your sibling to agree to let you out of the loan, the only way you can be removed is if the loan is paid off, whether by selling the property or by your sibling refinancing (if he can) in his name only.

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