I currently live in NJ and own a condo in York, PA with my husband. We are in the process of refinancing our condo mortgage. When my husband met with our Wells Fargo mortgage agent, he decided to take my name off the mortgage since I was no longer receiving an income (I'm a stay-at-home mom.) When I spoke with my Wells Fargo mortgage agent about removing my name she informed me that my name would still be on the deed to the condo but I would not be financially responsible for paying the mortgage.
What are the pros and cons to having my name on the deed and not on the mortgage? Is my credit affected (positively or negatively?) In the event of a divorce or separation how would the condo be divided? Is it to my advantage to be on the mortgage?
1 Answer from Attorneys
Trying to keep my response simple: (1) Being on the Deed and not the Mortgage protects your interest in the property in all instances, including divorce and default on the mortgage. This should nor impact your credit, and can possibly enhance it as you will have no debt on the new report. The equity in the condo will be reduced by the new mortgage balance (it makes no real effect, as you are consenting to the new mortgage anyway, just not becomming responsible for its payment), but you should still have 1/2 ownership of the equity in all circumstances. (2) In actuality, this might increase your value if you outlived your husband while there was a mortqage balance, depending on Deed registration. This is a response to an Internet question and the reply is not intended to be legal advice or as creating an attorney-client relationship.