Mostly referencing divorce situations. If the divorce decree gives the home to one person why would the other stay obligated? If the loan qualifed with double income and a single spouse can’t support payments then foreclosure is already in place to remedy that?
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The mortgage lender is a separate entity to a divorce court that awarded one spouse the home and lenders do not care about the general personal life of the borrower(s). All parties that signed onto a mortgage agreement are fully liable for repaying the debt i.e. both spouses at the time the mortgage was created.
Lenders often include a “due-on-sale” clause in the mortgage agreement that makes the mortgage unassumable. Lenders do this so that in the event that interest rates have risen, the lender can loan out that money to a new borrower at a higher interest rate. Any lender would prefer to be receiving more interest than less interest.
If interest rates have dropped below the rate on the original mortgage, new borrowers would not be wise to assume the mortgage at a higher rate.
Also, just because two (or more) people want to buy the same house, that does not mean they have similar default risk profiles.
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