Legal Question in Real Estate Law in Maryland
release of co-borrower option for divorce?
My spouse and I bought at the height
of the market (0% down) and now
we're getting a divorce and afraid we
won't have much equity and my
husband, who is keeping the house,
will not be approved for a loan if he
refinances. What is the difference
b/w ''Release of co-borrower'' and
refinancing? I don't want to be
responsible for the mortgage once we
are divorced and I don't want my
choice to impact me buying another
home down the road.
1 Answer from Attorneys
Re: release of co-borrower option for divorce?
A release of co-borrower would require the lender to agree to the release without being paid, and is not very likely to happen. A refinance pays off the existing mortgage with a new mortgage, in this case one taken out by your husband only (which would also require you to deed your interest in the property to him). In this economy, it is quite possible that neither could be done.
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