Legal matters on when a name is on the deed but not the mort

diamondeehops · Joined: 14 Sep 2007 Posts: 1 1.36 Dollars($)

my son and his ex fiance bought a house but they she called the wedding off 3 weeks before date. she is living in the house. her name is on the deed but she was not able to be put on the loan because of her credit so it is only in my sons name. He no longer wants the house but she wont move as she says its her house too but yet she doesnt want to take any financial responsibility for it. what are his options and why would they put someones name on the deed and not be able to be put on the loan.

livinginnky · Posted: Fri Sep 14, 2007 3:20 pm Post subject:

Well the first lesson is never ever put a girlfriend on a deed. I know they were getting married but they could have added her after. It's like a prenup. I usually have this conversation for my clients if needed. It just doesn't make sense for someone like your son to take that risk for any reason. Even if they were already married if she didn't have to be on the deed then she shouldn't be on it.

Now to the situation at hand. He needs an attorney. Depending on your state and situation she may have a right to be there (her name is on the deed). It is a frustrating situation he has to pay or else face foreclosure. She gets to live there for free.

If he has a chance he needs to prove that he is paying for it and she contributes nothing.

Who pays the mortgage? Both of them? Or do the payments come from his checking account? Do they share the account?

miller_st · Joined: 17 Jan 2007 Posts: 917 168.82 Dollars($)

If your son does not want the house and has no problem if it is sold then there is one option known as partition lawsuit. Through a partition lawsuit, house can be sold and mortgage balance paid off.

How much the mortgage was for? I mean the ltv ratio for the mortgage, like 70%, 80% or more.

Depending on the ltv ratio, after the sale, there would be some balance left which would then be divided among both of them.

If you want more information about partition lawsuit then kindly go through the following page: http://www.mortgagefit.com/know-how/removecoborrower.html

Miller

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Diamondeehops,

When your son does not want to keep the house, then he can quitclaim it to his ex fiance. After getting the complete ownership rights to the property, the lender may require to refinance the loan in her name.

And if she does not agree to refinance, you can do a novation and transfer the liabilities of the mortgage in her name. This will at the same time remove your name from the loan. You will have no further responsibilities to pay it off.

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