I mostly agree with Mr. Whipple. My perspective diverges only on the issue of how standard it is for lenders to re-write the financing. Lenders made the joint loan based on joint income, joint assets, etc. They will not just automatically re-write the loan to have only one person and half the assets backing the loan. The spouse who gets the house will have to qualify for the loan alone. Some lenders will do this as a loan modification for a fee, provided the spouse staying on the loan qualifies and the old loan is more favorable to the lender than current loans (e.g. higher interest rate). Many, probably at least a majority, of the lenders, however, require a full refinance, particularly if the joint loan is on better terms for the borrower than the current lending environment.

I mostly agree with Mr. Whipple. My perspective diverges only on the issue of how standard it is for lenders to re-write the financing. Lenders made the joint loan based on joint income, joint assets, etc. They will not just automatically re-write the loan to have only one person and half the assets backing the loan. The spouse who gets the house will have to qualify for the loan alone. Some lenders will do this as a loan modification for a fee, provided the spouse staying on the loan qualifies and the old loan is more favorable to the lender than current loans (e.g. higher interest rate). Many, probably at least a majority, of the lenders, however, require a full refinance, particularly if the joint loan is on better terms for the borrower than the current lending environment.