The only way to legally remove a person's name from a mortgage contract is by refinancing the debt. The 'refinance' removes the person's name from the deed, and it reports the debt as "transferred" on that person's credit report. Without such a refinance, the person is still liable for the debt.
Contact your current mortgage lender and request a mortgage application, known as a Uniform Residential Loan Application. This application will require the disclosure of your full legal name, date of birth, social security number, your past two years of residence, employment and income information. If a co-borrower is going to be on the refinance, his or her information will have to be disclosed as well.
Provide your lender a complete application along with two months' worth of pay stubs and bank statements. Additionally, provide your lender with copies of your two most recent income tax returns. Additional documentation may be needed, such as social security statements, retirement account statements, and/or divorce decrees.
Allow the lender to process your application, check your credit, and order an appraisal on the property. At this point, certain disclosures will be given to you to review and sign. Note the names on the mortgage deed and the closing costs as listed on the Good Faith Estimate. Sign and date each document and return them all to your lender.
Upon approval of the refinance, sign and date all applicable paperwork at the closing, After the three day right of rescission period, if applicable, the mortgage will be complete. The three day right of rescission period gives the borrower the ability to revoke the mortgage refinance without penalty, if he or she so chooses.
The average closing process takes from 3 to 6 weeks; however, you can work to shorten the process as much as possible by providing the lender with complete and prompt information as needed.
Ask the closing agent for a copy of the new deed, which will reflect the removal of the other borrower. Ask the removed borrower to check his or her credit report within 60 days of the closing to ensure that the debt has been removed. While this should happen automatically, it should always be double checked.