Posted: Thu Feb 08, 2007 6:23 am Post subject: How can a co-borrower remove themself from a mortgage loan?
I am separated and have not lived in the house since January 2006 and he is paying the mortagage and has always paid the mortgage. NOw he is paying the mortgage very and it is ruining my credit. But now he cannot refinance because of his credit and I don't know if he will be willing to sell the house.
As a co-owner of the house you can start a partition lawsuit through which the house would be sold. After the sale the proceeds will be divided by the court between both of you. Partition lawsuit can be started by any of the co-owners of the house even if other owners do not agree to sell the house.
The loan can then be paid off from the amount which is received out of the sale. As you are not staying in the house anymore, it will be better for you to have the house sold. The defaults on the mortgage are unnecessarily hurting your credit.
Do let me know if you have any other questions.
Thanks
Blue _________________ Lets help each other. Try my blog
If he does not agree to sell the house and continues to default then you can start a partition lawsuit as Blue mentioned.
After you file, the court will issue summons to him. You will be required to get an appraisal of the house and after which judgment will be issued. The judgment is called interlocutory judgment of partition for sale. The court will then appoint one real estate personnel to sell the house. After it is sold the court will provide you with an order approving the sale and for the proceeds to be distributed between both of you.
You would also be able to recover the involved costs and some part of the attorney fees from the proceeds that will be distributed to him. The reason is that as per laws one who starts the lawsuit is considered to be doing so on behalf of all other owners of the house.
But I would advice that you take help of an attorney to know the other details on how to proceed in this regard.
It is not that easy to remove co-borrower from the loan. This will depend more upon the lender. One can surely refinance to get the co-borrower removed. But then the co-borrower you mention here cannot refinance due to poor credit. So, you need to talk to the lender and request him to remove the person's name from the loan.
Refer to similar discussions on How to remove co-borrower from loan for more knowledge. _________________ Procrastination is the enemy of your financial sucess
Posted: Fri Feb 09, 2007 11:49 pm Post subject: RE: partition lawsuit is not possible after legal separation
Hi pmorketter,
I hope you haven't gone through a divorce or any legal separation agreement as that does not allow you to go for partition lawsuit. So, presuming that there isn't any such separation between you and the co-borrower (your husband I suppose) and both of your names are on the title, you can file a partition lawsuit.
Posted: Wed Nov 14, 2007 7:39 am Post subject: trying to sell the house, but EX won't agree
Most of the other post I have come across on this subject deal with the party who left the house wanting to sell and the party who stayed wanting to keep the property. My situation is different. I bought a house with my fiance' in Spring of 06. The peak of the housing market. I have been trying to sell for most of 07. I finally got an offer for $15k less than I paid and 2k less than I owe. On top of this I still have to pay realtors fees. My ex refused to sell the property unless I paid her another 10k. I can't even afford to stay in the house, which is why I am willing to sell at a loss. I am in the process of filing a partition lawsuit. How will this work? Will I be able to put it back on the market like before or will can be forced to take a lesser settlement? Who will be responsible for the cost of selling when the partition is ordered.
Thanks
Posted: Wed Nov 21, 2007 7:55 am Post subject: question for David
David you mentioned in your above post that in a partition lawsuit the proceeds from the house are distributed between the 2 parties. What if there is still a negative balance after paying the mortgage and realestate cost? Would that cost have to be split between the 2 parties?
Thanks
IN case of Partition Lawsuit, after paying the mortgage and real estate cost, if f there is still a negative balance, I think both the parties will have to pay that balance equally.
pmorketter
