Remove a Co-borrower missing 28 years of the mortgage Loan having 2months to settle it.

Thank you for the question. The right approach depends on whether you are trying to remove the person from (1) the loan obligation, (2) the property title, or (3) both. Those are legally separate issues.

Let’s start with trying to remove someone from a mortgage. As a practical and legal matter, a co-borrower cannot be "taken off" the mortgage loan unilaterally. The lender/servicer is not required to release a borrower simply because the other borrower has been making the payments. Typically, the only ways to remove a co-borrower from the loan are:

• Pay the loan off in full (which ends everyone's obligations under the note), or

• Refinance into a new loan in your name alone (which pays off the existing loan), or

• Obtain a written release/assumption arrangement that the lender voluntarily agrees to (this is uncommon for standard residential loans and is entirely lender-driven).

Because you are so close to paying off the loan, refinancing probably does not make financial sense. 

Depending on the circumstances, the simplest option may be to pay the remaining balance and close the loan. When a loan is paid in full, the lender must release its lien (the deed of trust) from the property records. Now, this does not "remove" a co-borrower from the historical loan documents, but it does show that the property is free and clear from the lender's security interest. After the final payment, you can typically confirm that a recorded release has been issued by the Public Trustee and recorded in the county where the property is located. The Public Trustee will also mark the promissory note “canceled” or “paid.” 

If the co-borrower is also on the deed/title, paying off the loan won’t remove them from ownership. The title can generally be changed only by a properly executed and recorded deed (e.g., a quitclaim deed) or by a court order in a divorce or partition case.

A partition action could be an option for you to explore. In a partition case, if both parties hold valid legal title to the property, the court would sell the property and distribute the proceeds equitably to each owner based on the contributions made during the co-ownership period. If your goal is to ensure the co-borrower has no ownership interest going forward, you might focus on the title side (deed/court order) rather than the lender side. You may need to go to court to resolve ownership disputes and, in the right type of case, order someone to transfer their interest in the property (or enforce an existing order, such as a divorce decree). However, courts generally do not force a lender to rewrite a private loan contract to remove a borrower. In other words, litigation may help with title/ownership issues, but it is usually not an efficient way to "remove" someone from the loan, especially with only two months left.

Based on the information you’ve provided, I’d recommend speaking with a real estate attorney who can gather more details from you and outline the clearest path to achieving your goal. Our team is happy to sit down with you to discuss the details of your case and help you create the best strategy for your circumstances. Feel free to schedule a consultation online or call 303-688-0944.