removing a co-borrower from a mortgage loan

Guest

What if the lender doesn't accept this? Should I refinnace? look for another lender?

gmakerley · Posted: Tue Apr 07, 2009 1:18 pm Post subject:

my gut-level reaction to how the bank will view your situation is not favorable, maria. since only 3 months have elapsed from the time you went on that loan as a cosigner, your parents will not have established much of a track record; a track record is key in their attempt to refinance.
you may well be stuck at this time.

gmakerley · Posted: Tue Apr 07, 2009 1:19 pm Post subject:

if your dad is making "cash" income, there's not much flexibility in lending guidelines to help you out in this situation.

devidas_padir · Joined: 01 Mar 2009 Posts: 49 6.41 Dollars($)

It can be done but here are the reasons why the lenders don't take the risk-
1. The person remaining on the mortagage may be 'less efficient' to repay the loan in bank's opinion
2. There is a risk that, if the remainder gets defaulted, the lender's decision goes wrong by allowing a person to own a deliquent property -whose loan was already rejected for less fullfilling documents. Thus the decision maker may be questioned for that.

gmakerley · Posted: Thu Apr 09, 2009 6:18 am Post subject:

Guest

Hi. I was added to my father's loan via novation.. all we did was record a grant deed that added me to title. They did not run my credit or check my income.. however, now I want out of this liability and they won't take me off without refinancing which is not possible... they lender offered to take my name off the loan by removing me from title but they say I am still liable in case of default from my father.. how is this possible that I am trapped? I never signed any loan documents or promissory notes.. just sent them a copy of the recorded title..

Im thinking that the people at the assumptions dept. (GMAC) are confused and think that I was initially a coborrower on the loan when I was not..

Any help would be appreciated..

jenkin7 · Posted: Sat Apr 11, 2009 2:31 am Post subject:

Hi Marvin,

They are right in saying that even if you remove your name off the title, you will still be liable for the mortgage in case of a default. A refinance seems to be the only way to remove you from the loan.

Guest

Six years ago I used to work as mortgage loan processor and if we showed another person made the payments on a debt for the last 12 months (usually via copies of the cleared checks) we wouldn't hold the debt against the borrower. I don't know if they still do this. However, the borrower may not qualify for 1st time home buyer programs, and any late payments wouldn't be a problem.

Guest

Sorry, late payments WOULD be a problem.

gmakerley · Posted: Tue May 05, 2009 9:07 am Post subject:

garner, you are correct in what you've said. i'm not certain that every underwriter will apply the same standard when a different party is making payments. i'd like to think that's the case, but we've seen such enormous changes in how loans are processed, underwritten and closed in the last couple of years, that it's anyone's guess.

it still ought to be valid, though.

dilipgagare · Joined: 26 Mar 2009 Posts: 59 0.19 Dollars($)

Dear friend this is very difficult to transfer but you can discuss with lender tell your problem he will give you proper advoice.
And you should confirm with your uncle to transfrring ownership.

Thanks
Dilip

gmakerley · Posted: Sat May 09, 2009 10:10 am Post subject:

dilip!!!!!!! to whom are you responding? are you even reading these? at all???

Guest

I am getting refiancing done on my home loan along with my husband but i am removing my name from co-borrower. If i remove my name will it effect my credit score in any ways ?

gmakerley · Posted: Thu May 28, 2009 10:36 am Post subject:

brio, i suspect the ultimate result is going to be negligible. your credit report would show you as having been obligated on what is now a paid in full mortgage loan. that you no longer would have that loan as an active, open account wouldn't hurt you nor would it benefit you all that much.

Guest

hi, my mom and my sister helped us to buy a houses 5 years ago. i would like to know if there is a way that we can remove my mom from the loan without refinancing. a quitclaim deed has already been signed by my husband and i and the lender is awared.

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