Legal Question in Real Estate Law in Virginia

Re: Do we need to refinance?

Most lenders do not allow names to be removed or switched on an outstanding mortgage. In part, the reason is that your ex-wife is now equally responsible, so the lender does not want to release her. Since you say you need to buy your wife out, a refinance may be a source of funds. An attorney may be able to help you complete this transaction.

Re: Do we need to refinance?

In theory you can... through a "novation". However, most lenders are unwilling to do so because as you can imagine your wife was given the loan based on her own qualifications... now the bank knows nothing (really) about your future wife: the bank would then need to qualify her, release your ex wife and put your wife on the mortgage as well. Chances are that even if they are willing to go through the trouble of making it happen you would still incur so much expenses that you are probably better off refinancing, placing your future wife on the Deed (not only on the mortgage... this is to protect your future wife!!!) and buying your ex wife out and placing the buy-out as a "line item" directly on the HUD-1. Keep in mind that if you're refinancing your primary residence there are three business days during which you have the right to change your mind (federal law), so make sure that you tell your ex that she will not be getting her money until the rescission period is over (on the 4th BUSINESS day). I see it all the time where angry ex spouses get alarmed and feel scammed when they realize that they do not get their money at the table!!