Q: In MI. Does the party that loses the house in the divorce, but is still on the loan and title, have to sign if refi done
The current resident is wanting to refinance the loan to remove the other party who is remarried and no longer a resident from the loan and title.
A:
Generally when it comes to a divorce and real estate, the terms of the divorce decree (as agreed to by the parties and signed by the judge) prevail. Usually the divorce decree will state how the real estate is to be split between the parties. The provisions will often set a time for the property to be sold or refinanced. Often where there is equity in a property and in the event of a refinance, one party will receive an agreed upon figure from the refinance proceeds in exchange for them signing off on a deed that allows the other party to refinance the home in their own name.
DO NOT proceed with a mortgage loan application to refinance until you confirm the status of the divorce decree with your ex spouse and your mortgage bank / underwriter. Also, it is best to have an ex spouse deposit an already endorsed deed into escrow with the title company that will be closing the loan. Good luck!
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