Is it possible to remove my ex-husband as a co-borrower on a mortgage?

What is the difference between a co-borrower and a guarantor?

A co-borrower is a person who has equal rights and obligations with the title borrower. It is involved in order to increase the chances of receiving a loan. The income of the title (main) borrower and co-borrower are added up, so the likelihood of a positive decision on the part of the bank increases. Co-borrowers are subject to the same requirements as the main borrowers.

The guarantor is also a third party in the loan agreement, who acts as a guarantor of the borrower’s fulfillment of obligations to the lender. Unlike a co-borrower, a guarantor does not bear joint and several (equal) liability under the loan agreement. His liability arises if the main client does not fulfill his obligations to the bank. The diagram looks something like this:

1. The borrower stops paying on the loan.
2. The bank issues demands for debt repayment.
3. The borrower is unable to fulfill his obligations.
4. The bank issues demands to the guarantor.

Consequently, the co-borrower fulfills the obligations under the agreement together with the title borrower, and the guarantor - instead of him. In this case, the first one has the right to dispose of funds, as well as to a share of ownership in the real estate purchased with a mortgage. The guarantor does not have these preferences, since he does not bear joint liability on an equal basis with the main client of the bank.

How can you get a co-borrower out of a loan?

In fact, you need to re-issue the loan agreement. To do this, you need to contact the bank where the mortgage was issued and write an application to change the loan agreement. The application must indicate the reason for the change of actors.

In addition to the application, the bank will request documents. Which ones depend on the institution, each of them has its own policy. In most cases, they are asked to show a divorce certificate, passports of the debtors, and an agreement on the division of property.

For the bank, such betrayals are risks. The borrower receives a greater financial burden, but the co-borrower is no longer there. Therefore, they may again request a certificate of income.

Some banks will not make a final decision until they have spoken to both borrowers. This is necessary in order to ensure that all actions are legal: the co-borrower really voluntarily wants to give up housing and get rid of loan obligations.

If the bank makes a positive decision on the application, the borrower will be offered to enter into an additional agreement to the loan agreement or sign a new one.

All changes will need to be made to the Unified State Register of Real Estate by submitting documents and an application to Rosreestr. For this you will have to pay a state fee - from 200 to 1,000 rubles.

Who can be a co-borrower?

Any adult who meets the requirements of the credit institution can act in this capacity. Considering that the co-borrower is a full participant in the loan agreement, the involvement of minors for these purposes is not allowed.

For example, you can take the loan program of a conditional bank. Standard requirements for potential clients are as follows:

• Age appropriate.
• Availability of permanent income and employment - the data is documented.
• Permanent registration in the region where the agreement is concluded.
• Positive credit history.
• No heavy credit load.

Whatever requirements are imposed on the borrower, the bank sets the same requirements for the co-borrower. In certain situations, a person becomes a co-borrower automatically - in accordance with legal requirements. This is possible if the mortgage is issued by a person who is officially married. The second spouse enters into the agreement as a co-borrower, regardless of whether he meets the requirements of the credit institution or not.

basic information

But first things first, let's start with the definition: a co-borrower is a full-fledged participant in a credit transaction, whose income is taken into account when calculating the maximum loan size. This can be a spouse (mandatory if there is no prenuptial agreement), immediate relatives (parents, sisters and brothers, children, etc.) or a stranger, such as friends or colleagues.

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Each bank has certain requirements regarding the maximum number of people that can be attracted. As a rule, their number does not exceed 2-3 people. They can be a Russian citizen over 21 years of age who has official employment, sufficient income and a positive credit history.

Please note that all participants in the transaction undergo a full bank check of solvency, as well as all documents. The list will be the same as for the main borrower.

Who can withdraw from the contract?

It is allowed to change the composition of debtors under a loan agreement. With the consent of the bank, the following rearrangements can be made within the framework of one agreement:

Replacing the title borrower with another individual - transfer of debt obligations.

Replacement of one or more co-borrowers, or their withdrawal from the agreement without the involvement of other (alternative) persons.

Reassignment of status - replacement of the title borrower with a co-borrower and vice versa.

There are no restrictions on such actions. Changes in the composition of debtors are initiated by the main client. Exception: withdrawal or replacement of a co-borrower when it comes to an official family. It is prohibited to remove a spouse from a loan agreement if the marriage has not been officially dissolved, or if a marriage agreement (contract) has not been concluded between the parties.

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How to increase the chances of agreement?

The most important thing is to obtain the consent of the credit institution, but it is not a fact that it will be received. The Bank reserves the right to regulate the process and will refuse withdrawal or replacement if this affects its interests. If the risk increases as a result, the deal will not be approved.

The applicant’s task is to documentably prove to the bank that the risks will not increase as a result of the operation. That is, if we are talking about withdrawing a co-borrower from the transaction, then the borrower must document that he has a stable job and income that will allow him to repay the loan without any problems. In the case of a replacement, everything is similar - the new co-borrower should not be inferior in quality to the previous one.

How to get rid of co-borrowers during a divorce?

A spouse can become a co-borrower on a mortgage after a divorce only with the consent of the credit institution. Any change in the composition of debtors is possible after agreement with the bank. The exit procedure may vary depending on the rules established in a particular bank, but, in general, the algorithm consists of the same stages. To cease being a co-borrower, you must send a package of documents to the bank.

The entry of the second spouse into co-borrowers is a requirement of family law, which can be circumvented by drawing up a marriage contract. In all other cases, the spouses are co-borrowers. If the official marriage is terminated, one of the parties, if necessary, can withdraw from the debtors. Next, using the example of Sberbank of Russia, the procedure for withdrawing from being a co-borrower under a mortgage agreement will be described.

Options for solving this problem

Spouses who have decided to divorce and are co-borrowers on a mortgage obligation must:

1. Contribute mortgage funds as before , without changing the conditions for the return of funds and ownership of the premises. In this case, the spouses, after informing the bank, make payments according to the previous rules;
2. Apply for the transfer of property rights to only one spouse. In this case, it is necessary to apply to the banking organization with an application to transfer the debt to one of the spouses. If the application is satisfied, the bank draws up an additional agreement, which specifies the rights and obligations of the sole borrower, and also establishes a new frequency of payments and their amount;
3. Divide in court the rights of ownership of real estate , as well as obligations to repay the mortgage debt. To do this, you should file a civil lawsuit in court asking for the division of joint property. During the hearing, the court, based on the ratio of the spouses’ shares in property, will establish the procedure for subsequent payment of mortgage payments;
4. Pay off your mortgage early and then sell the property. Having chosen this way of resolving a controversial situation, please note that until the debt is fully repaid, the sale of property is unacceptable, since the property has the status of encumbered;
5. Refuse to fulfill obligations and wait for the property to be sold at auction by a banking organization. In this case, the encumbered apartment will be sold by the banking organization independently. The money received from the sale of real estate will be counted towards the repayment of the mortgage.

Regardless of the decision made, spouses must inform the banking organization about the divorce.

Changing the terms of the loan agreement

There are several ways to remove a co-borrower

1. Voluntarily, when contacting a banking institution with a corresponding application. In this case, the main borrower needs to find an additional second co-borrower instead of the retiring one. The retiring spouse, in turn, must express in writing his consent to withdraw from the obligation; this consent must be certified by a notary. If the banking organization agrees, as previously indicated, an additional agreement will be drawn up that will meet the new conditions;
2. The issue of distribution of obligations can be resolved without the participation of a credit institution. To do this, you must go to court. After the court’s decision has been made and it has entered into legal force, you should apply to the Russian Register for the issuance of a new certificate of ownership. The basis for issuing a new document will be a court decision. Next, with a court decision and a new certificate, you should contact the bank with an application to change the terms of the mortgage agreement.

Mortgage waiver

Based on the previously indicated information, we can conclude that mortgage waiver can be implemented in several ways:

1. Voluntarily by one of the spouses, by drawing up a written, notarized refusal to fulfill obligations, as well as a voluntary refusal of ownership of this property. If the banking organization agrees with this request, then it will initiate the re-registration of property rights with the registration authority, and will also draw up an additional agreement to the main agreement;
2. In court on the basis of a decision of a judicial authority. After the relevant decision is made, the main co-borrower acquires the right to re-register the property without the consent of the bank;
3. Based on the marriage contract, which must indicate that one of the spouses does not claim ownership of the mortgaged property during a divorce.