Has your ex-spouse been ordered to refinance your marital home out of your name as part of your divorce? How can you remove a spouse's name from a mortgage? This is a super common occurrence; when one party is awarded the home in a divorce, that party usually has to remove the other party's name from the mortgage. The way to do this is usually through a refinance. Once the spouse who is keeping the home refinances, the house will be in that person's name alone . The other spouse's credit will be cleared of that loan, which will free up that spouse to purchase a new residence.
But what happens when the ex-spouse keeps the home and then does not refinance as ordered in the final decree of divorce? Now the spouse who does not have the home cannot purchase a new home because his/her credit report still shows the mortgage from the old home. Further, that spouse will also have a tough time obtaining other loans like car loans and credit cards. What can be done in this situation?
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