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Novation for a father/daughter condo?

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ab0720 Joined: 12 May 2011 Posts: 1 1.36 Dollars($)	Posted: Thu May 12, 2011 9:00 am    Post subject: Novation for a father/daughter condo? Like 0 Dislike 0 A short background: My father and I purchased a condo in 2006 with myself as the primary resident and he as the secondary home holder. I have moved out of the property, and will be leaving the state. The property took a loss of well over $100k, and it is an ARM. My father is hoping to turn it into a rental property. We are going to pursue a n ovation to remove me from the mortgage agreement. Given that he is already a co-borrower, has significantly higher income and great credit, I am optimistic that it will be approved. What should I expect in terms of this process, ie, paperwork, procedures, and fees?
dipaligopale Joined: 25 May 2010 Posts: 790 22.70 Dollars($)	Posted: Thu May 12, 2011 8:13 pm    Post subject: Like 0 Dislike 0 Hi ab0720, Welcome to Mortgagefit, As far as this situation is concerned, lender will surely ask to opt for refinance instead of novation..because they prefer it....As you have told that your father's credit is very good and good income history as well so you can check it out with the lender whether he qualifies for the refinance on his own or not?... As far as novation's fees and documents are concerned it may differ from state to state and thus you are advised to contact local attorney.... Feel free to ask any further query if you have..... DIPA _________________ 1.The best of intentions must still have directions !--Unknown author 2.When I hear somebody sigh, "Life is hard," I am always tempted to ask, "Compared to what?" - Sydney J. Harris
adonis Joined: 22 Oct 2005 Posts: 10562 Location: ALASKA 1089.18 Dollars($)	Posted: Thu May 12, 2011 9:29 pm    Post subject: Like 0 Dislike 0 Hi ab, It will be the sole discretion of the lender whether or not the lender will approve a novation. The lenders mainly prefer refinance over novation. It is the lender who will be able to guide you better in order to know about paperwork, fees, etc. _________________ Procrastination is the enemy of your financial success

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