Because mortgages are loans from financial institutions to specific individuals, changing the name often entails more than simply informing the lender. A simplified process exists when the same borrower adopts a new name due to marriage or divorce. But adding or deleting borrowers is more complex. The mortgage company must approve changes that alter the persons obligated for loan repayment.
Same Person With New Name
Obtain a copy of your marriage license or divorce decree if your name has changed from how it’s stated on the mortgage.
Call the mortgage company and request information about changing the loan into your new name.
Complete the documents in a name change kit provided by the mortgage lender, or visit the local office of the mortgage company to execute the documents in person, if allowed.
Call the customer service department of the mortgage lender and explain the reason for a name change. Be prepared to apply for a new mortgage if you want to add or remove someone’s name on the loan.
Contact a title company or a real estate attorney to request execution of the legal process for transferring the property to the person you want named on the mortgage.
Discuss your situation with a mortgage broker, who can help you apply for a mortgage that replaces the current one. You might have to make a downpayment that reduces the new mortgage amount. This depends upon the property value and credit worthiness of the new person named on the mortgage.
Tell the mortgage lender that approves a loan in the new borrower’s name which title company or attorney is conducting the property transfer. Those parties will exchange documents for either a new mortgage or an assumption of the old mortgage into the new person’s name.