Two people who purchase a house together without marriage

danderson1 · Joined: 27 Mar 2008 Posts: 2 1.74 Dollars($)

Our son, who was engaged, bought a house a year ago with his fiance. We, his parents put a lot of money in the house to make it liveable, she in turn has not invested any money in the house. We do have receipts. She no longer wants to be engaged, but also cannot afford the house, our son on the other hand can. He doesn't want to sale it, but also doesn't think she should benefit from the money we invested to make it liveable ($20,000).

Is there a way to get her name of the mortgage without refinancing? And if the house goes up for sale, how can we get our money back. She no longer wants to be in the house, she doesn't own anything inside, our son does. She just wants out of the mortgage.

larry · Joined: 27 Jun 2007 Posts: 2490 330.05 Dollars($)

Hi danderson,

Welcome to the forum.

Is she on the deed too? If so then she will have to quitclaim her share of property your son. So does she agree to do so?

Other than refinancing you can request the lender for novation. But the lenders do not always agree for that.

If you make the mortgage payments on time then the lender would not have any problem even if she is on the mortgage.

Feel free to ask if you have any further questions.

Best of luck,
Larry

danderson1 · Joined: 27 Mar 2008 Posts: 2 1.74 Dollars($)

So you are saying if we draw up the papers, she can quitclain her interest in the property to our son if she so agrees? And will that remove her name from the mortgage also? As well as the deed?

larry · Joined: 27 Jun 2007 Posts: 2490 330.05 Dollars($)

Hi danderson,

Welcome back.

If she quitclaim her share of the property to your son then that will only remove her from the deed. But your son will have to refinance the mortgage or do a novation to release her from the mortgage obligation.

Feel free to ask if you have any further questions.

Best of luck,
Larry

Jeanette · Posted: Thu Mar 27, 2008 8:15 pm Post subject:

Welcome to Mortgage Fit Danderson,

As Larry mentioned first thing your son have to do is a quitclaim to release her from the deed. Second, he must refinance the property in his name and possibly a co-borrower and get her off the loan. That is the normal procedure. You can ask your lender about novation and see if they will be willing to go that route with you.

Thanks and good luck,

Jeanette SMith
Mortgage Planner
Union Mortgage Group

0.10 Dollars($)

thank you all, this has been very helpful

michelle · Posted: Sat Apr 05, 2008 5:49 pm Post subject:

Welcome to the forums danderson,

It appears that others have addressed the issue of the ex-fiance and the mortgage/deed quite well. I would like to address the money you have invested in the home.

Was the money you put into the home intended to be a gift or did you at some point expect repayment? If this money was giving to your son and his fiance' with the expectation of repayment, you may be able to place a lien on the home so that when the property is sold or refinanced you can get your money back. Please be cautious of doing so though, as this will increase the amount your son will need to borrow when it is time to refinance.

I would recommend that you contact a real estate attorney regarding your situation and he/she should be able to offer the best legal opinion on whether or not to place the lien and also options on how to prevent the fiance' from benefiting from your investment. If you can provide enough documentation regarding your investment, it may be possible for an attorney to ensure that she does not get any of that as equity.

Please let us know if you have any further questions or concerns.

gmakerley · Posted: Mon Apr 07, 2008 10:36 am Post subject:

your son's fiancee is not required to quit claim her interest in the property to him. she can do so if she chooses, of course; this would not eliminate her obligation under the mortgage, however.

as to your money - unless you were anticipating repayment of that money, i don't believe you have much of a claim on it. the young lady may benefit from the funds you expended if she does not agree to a quit-claim and the home is sold, thereby releasing proceeds to her.

again, as michelle suggested, you would be wise to discuss your options with a local real estate attorney; to see what your recourse is, if any.

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