Can I be forced to refinance?

Brette’s Answer: It is difficult to force someone to refinance because it’s up to the bank whether he qualifies for a loan. What indemnification means is that if he fails to pay and the bank comes after you, you can in turn sue him for the costs you face.

Can you decide not to refinance?

You can back out of a home refinance, within a certain grace period, for any reason, but you may face a fees or penalty if you choose to cancel or otherwise can’t refinance. When a refinance doesn’t go through, you typically must cut your losses for certain up-front costs you paid during the refinance process.

When can I walk away from a refinance?

If you are refinancing a mortgage, you have until midnight of the third business day after the transaction to rescind (cancel) the mortgage contract. The right of rescission refers to the right of a consumer to cancel certain types of loans.

What happens if I can’t refinance after divorce?

If you’re not willing or able to sell or refinance the marital home, your other choice is to keep the home and the mortgage intact. Both parties remain on the existing loan and liable for the payment. This requires specific language in the divorce agreement about who will make the mortgage payments each month.

Can I take my husband off the mortgage?

You usually do this by filing a quitclaim deed, in which your ex-spouse gives up all rights to the property. Your ex should sign the quitclaim deed in front of a notary. One this document is notarized, you file it with the county. This publicly removes the former partner’s name from the property deed and the mortgage.

Can I change my mind about refinancing my mortgage?

Yes. For certain types of mortgages, after you sign your mortgage closing documents, you may be able to change your mind. You have the right to cancel, also known as the right of rescission, for most non-purchase money mortgages. Refinances and home equity loans are examples of non-purchase money mortgages.

Can I walk away from a rate lock?

You can back out of a mortgage rate lock, but there are consequences. Backing out of a rate lock means giving up the application you’ve put time and money into. You’ll have to start your mortgage application over from the start, and you’ll likely have to re-pay fees like the credit check and home appraisal.

How do you cancel a refinance?

An individual who wishes to cancel the transaction would fill out the form, sign it, and send it to the bank attorney on the transaction. The attorney would then send it to the lender, who cancels the funding of the loan.

Can my husband refinance without me?

It is not possible for one spouse to refinance a joint mortgage without the other borrower’s knowledge or consent — that would be mortgage fraud. In addition, the spouse remaining on the mortgage needs to be able to qualify for the loan on their own.