QLD Will Signing Agreement Take My Name Off the Mortgage?

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Foxkerrie777

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1 March 2017
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I have separated from my partner and he has seen a lawyer. My main concern is getting my name off the house and personal loan. The lawyer has sent me a 2nd agreement saying "If you are agreeable to the client's offer, he proposes to refinance the mortgage into his sole name".

If I sign this and send it back, does that mean this is a definite thing and my name will be removed? What happens if the bank says no to refinancing? Am I then stuck with the loans in my name and have no legal leg to stand on because I have signed this agreement?

I thought he has to prove refinance can be done before I sign the final document that will be sent to court.

Thanks for your help.
 

Rob Legat - SBPL

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16 February 2017
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Please appreciate my answer is coming from the perspective of being experienced in credit and debt; I'm not a family law practitioner.

Refinancing depends on an outside party (ie the bank). If it is successful, it will get your name off the loan as there will be a new loan paying out the existing one.

As for the agreement, there's no way of giving you a definitive answer as to what will happen without seeing its terms. From what you have said, your ex-partner is 'proposing' to refinance the mortgage. This is the correct way to be putting it, because he cannot guarantee it will happen. If it doesn't, your name will remain on the loan.

I have heard of courts make orders about liability for loans in this sort of instance, ordering that one party be solely responsible for payments. I don't know the practical effect, however, as the lender doesn't get informed or consulted before the order is made, so it may be that the 'released' party still has to pay the lender on demand but can make a claim against the 'owing' party for any loss suffered.
 
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Foxkerrie777

Member
1 March 2017
2
0
1
Please appreciate my answer is coming from the perspective of being experienced in credit and debt; I'm not a family law practitioner.

Refinancing depends on an outside party (ie the bank). If it is successful, it will get your name off the loan as there will be a new loan paying out the existing one.

As for the agreement, there's no way of giving you a definitive answer as to what will happen without seeing its terms. From what you have said, your ex-partner is 'proposing' to refinance the mortgage. This is the correct way to be putting it, because he cannot guarantee it will happen. If it doesn't, your name will remain on the loan.

I have heard of courts make orders about liability for loans in this sort of instance, ordering that one party be solely responsible for payments. I don't know the practical effect, however, as the lender doesn't get informed or consulted before the order is made, so it may be that the 'released' party still has to pay the lender on demand but can make a claim against the 'owing' party for any loss suffered.



Thank you for your reply, much appreciated.