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Homeline of credit split issues

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  • Homeline of credit split issues

    So me and my girlfriend bought a house together and part of it was getting a Homeline of credit to do renos. The bank will remove my name from the mortgage no porblem and I will get paid out because she is deciding to keep the house. But the bank is saying they can't remove my name from the line of credit unless there is a court order or a legal separation agreement.
    What can be done about this? First off we should need a separation agreement, we were never married. A court order seems excessive. She is willing to assume the entire line of credit because she is staying in the house and benefiting from the equity built up from the renos. Please help me out on how to fix this. I just want my name off of it all so I can move on.

  • #2
    Banks won't release you from mortgage/ line of credits until they're paid off. If the money was provided based on 2 people, they won't relinquish their ability to sue both for the money back.

    Ex would need to get their own loan and transfer the debt.


    • #3
      The bank will remove my name from the mortgage, she just needs to be approved on her own for the remaining mortgage and pay me out. Can she not simply add the line of credit to the mortgage amount and dissolve it that way?


      • #4
        Yes she would need her own loan, then transfer to close.
        The problem is qualifying for a loan 2% over the already high interest rates, on a loan 2 incomes we're needed for.


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