co-owner's of home

Guest 0.10 Dollars($)

Good morning; i own my house w/ someone; situation has taken a turn for the worse and now need to get him off deed and mortgage. Am not having any luck refinancing to get him cash but any other suggestions and should i take him off deed before i make financial leeway? thank you

blue · Posted: Wed Aug 29, 2007 11:18 am Post subject:

Hi Kim,

Welcome to Mortgagefit discussion board.

To take his name off the loan you will have to get it refinanced in your name otherwise he will remain on the note.

Right now you can ask him to quit claim his share in the house over to you. And after some time when you can meet the requirements specified by lender, refinance the loan in your name.

But before the title transfer discuss this issue with the lender and whether you would be allowed to continue the mortgage without having to refinance for some time until you can qualify.

Do let me know if you have any other questions.

Thanks
Blue

Guest 0.10 Dollars($)

Hi Blue - thanks for the info. To clarify, discuss w/ the lender if I can ?? We're both on the loan and deed right now (although I'm am currently the only one paying the mortgage). Where would I look to see when the market will start shifting the other way to see about the 125% 2nd mortgage?

thank you

Guest 0.10 Dollars($)

"Where would I look to see when the market will start shifting the other way to see about the 125% 2nd mortgage? "

It will be difficult for you to get 125% mortgage as most lenders don't do it presently because of the recent problems that mortgage industry is going through.

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

Hi Kim,

If you cannot refinance, you can for a novation. It is a legal process by which your husband can be substituted from the loan. Your husband will sign on the novation document and will transfer the loan solely to you. In this way, he will be free of liability of making the payments. But the transfer is not possible without the lender’s approval. Your lender must allow you for the transfer of loan.

I think it will be better if you remove your husband from the deed earlier than you go for the novation process. After the title gets transferred, he will not be able to claim any share of the property.

evolovik26 · Posted: Sat Sep 01, 2007 7:39 pm Post subject:

I am assuming the other person wants something out of it? (if not he just needs to quitclaim the deed over to you. If they want money you can agree to a sum you can pay out of your savings.(but he has no guarantees there and might be reluctant to do so on your good word alone), you can refinance to get them the money. You can sell the property and get him the money (probably not what you had in mind), or you can draw up a contract with a lawyer to pay X at the time you next refi or sell the property.
Thouse are the few options that i can think off.

rdhanda · Joined: 31 Aug 2007 Posts: 5 3.44 Dollars($)

KIM.
If u can not afford to pay hime and neither u want to keep the same person for the reasons u can change them and keep another person who can pay more money and out of which u settle ur issues with the older one and get rid of one and keep some for u also for ur benefits...rdhanda

Guest 0.10 Dollars($)

Evolovik,

I agree with you that the other person wants some money from Kim in return of his share. It is no doubt good if she pays him the amount out of her savings. But what do you think if she uses the fund from her retirement account? Will there be any downside to this?

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

Withdrawing from retirement account is not a very good idea most of the times as if the person is unable to repay in time then he would have to face income tax on that amount as well penalty.

Miller

rdhanda · Joined: 31 Aug 2007 Posts: 5 3.44 Dollars($)

I have taken a housing loan for the home I PURCHASED 07 YEARS BACK
and still have to pay for another 20 years due to increase in interests of banks which was 12 years previously.Do i take money from my provident fund to repay or continue with the same plan.My children are very young and will completel their education nearly when I will get my retirement.IF I pay from my pf amont I WILL NOT be left with any money after retirement.Please suggest....Rdhanda

rdhanda · Joined: 31 Aug 2007 Posts: 5 3.44 Dollars($)

I ALSO SUGGEST NOT TO TAKE ANY MONEY FROM YOUR RETIREMENT FUND BECAUSE THIS IS U NEED AFTER RETIRMENT FOR YOUR STTLEMENT....RAJEEVDHANDA

livinginnky · Posted: Sun Sep 09, 2007 2:09 pm Post subject:

I have question for you? And then some advice maybe. Why does he want cash? If there is not any equity in the home no matter how many payments you made together there is no equity. I see and hear it all the time. "I made all these payments for this house I want half the profit". What profit? If you made 100 payments and only took off $5000 in principle what do you owe him? $2500 maximum and not half of the total payments.

You should find out if you can get his name off the deed. You would talk to a Title Company or Real Estate Attorney in your area. You won't be able to get his name off the loan unless you refinance or get your current lender to agree. The positive is if you are making the payments and the checks are in your name they are your payments no matter who's name is on the loan with you. Another thing is what is the worst thing that could happen with his name on the mortgage, what he makes a payment when you don't know about it.

He does not have the right to extort money out of you. If you are making the payments keep doing so. With proper legal help the house will be yours anyway.

125% mortgages are never a good solution. Well maybe .01% of the time.

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

Hi Rdhanda,

Even I feel that you should not consider taking out money from your provident fund account as you may need that money later after your retirement. It is better if you manage to take out some money from your personal savings account. This will help you to make interest payments towards the loan.

carnahandavid · Joined: 21 Dec 2006 Posts: 239 58.40 Dollars($)

Rdhanda,

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