[pgshanley]

My daughter's father co-signed for a mortgage loan for her family five years ago. I just learned that her name is not on the mortgage at all; she is leaving her husband who claims that the house is "his", not hers and he refuses to leave. My question is this: how can her father, the co-signer, remove himself from the mortgage liability since our daughter will not be living there anymore and can this situation be resolved within the divorce petition?

[twinkiedooter]

The only way to remove the father's name would be if the husband refinanced the house in his name only. Banks don't like to just remove a co-signer.

[pgshanley]

So actually, it's a mutual agreement between primary and co-signer to refinance?

[AK lawyer]

So actually, it's a mutual agreement between primary and co-signer to refinance?

Actually, it's an agreement between the bank and the primary. Bank agrees to lend primary the money necessary to pay off the existing mortgage and the primary agrees to pay the new loan according to its terms. This agreement is of course secured by a new mortgage. If it is approved by the bank, the old mortgage is paid off, and the co-signer's obligation is discharged.

... and can this situation be resolved within the divorce petition?

Definitely. Even if her name isn't on the title, the divorce court can award her an interest in the house, thus forcing husband to make a deal (which would probably amount to refiancing).