removing one sibbling’s name off the home loan and deed

Get Legal Help Today

 Secured with SHA-256 Encryption

removing one sibbling’s name off the home loan and deed

2 sibblings are listed on a home loan and deed. One of them has not been working for over 1 year and is probably not going to be working anytime soon due to mental illness. The sibbling not working agrees to have his name removed to mitigate risk to the home. what is the process for doing this – should we get a lawyer or contact the bank? Payments have been on time loan is about 1year old.

Asked on June 22, 2009 under Real Estate Law, Maryland

Answers:

S.J.H., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

There are different issues between getting one off a deed and one off a mortgage. Getting one off the deed is easy, if the person being removed is in agreement. What needs to be done is a deed transfer with all accompanying documentation. Each state has different forms that need to be signed in addition to a deed. This could be tax forms or registry forms so you need to speak to the clerk of the County in which the deed is filed or a real estate attorney. However, the fact one is removed from the deed does not mean he/she is removed from the mortgage. The only way this can be done without refinancing is to have the bank agree to remove the other sibling. If the mortgage is current and has been on time for over a year, and you can show that you have been making all the payments, the bank may agree to remove the other sibling from the mortgage. You need to contact the bank to see if they are amenable. If not, you are going to have to buy out the other sibling by refinancing and paying off the mortgage to get the other sibling off the mortgage. I suggest you contact a lawyer in your area for advice on these issues.  

B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

The easiest way to do this is for the working sibling to buy the non-working sibling's interest by refinancing the home in the working sibling's name only.  I understand that this may not be possible, especially right now.  Sometimes, a lender will agree to remove one person, but the few times I've seen it done, the lender insisted on a substantial (5 figures) pay-down on the loan principal as part of the deal.

I think talking to a lawyer is the right place to start.  I'm not a Maryland attorney, and there are some variations in the law and procedure.  It's important that the paperwork be done correctly.  Also, there may be other facts that come into play here, beyond what you've outlined.  One place to find a lawyer who can help you with this is our website, http://attorneypages.com


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption