How can I transfer my name off the house loan into the co-bo

hurtnme · Joined: 05 Dec 2007 Posts: 7 3.96 Dollars($)

Hello. I'm a recent home owner. My boyfriend and I were planning on getting married so we bought a house together about 6months ago and are currently living in it. However, we have decided to split apart. Sad... Sad

But now we have a house loan over our head. What do we do about that? I want to just sell the house, but he declines that idea. The market is down and we think we may lose money and have to owe more if you sell. So we've thrown around the idea of just one of us just keeping the house. In that case.. How would we get the co-borrower off the loan? I'm so stressed and need lots of help.. I know that If I were to give him the house I would have to file a quit claim deed. But, that doesn't take my name off the mortgage! I want my name off everything!! How do I do that?! Hope you can help.

Guest 0.10 Dollars($)

Hello,

You can ask your boyfriend to refinance to remove your name from the mortgage. You can also ask him to do a novation and for that you need to take consent from your lender.

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi hurtnme,

Welcome to this forum.

You are right. If you signs a quitclaim deed, that will not remove your name from the loan. Jonny has rightly suggested you to task your boyfriend to refinance before you sign a quitclaim deed.

I will suggest instead of novation, request your boyfriend to refinance and remove your name from the mortgage.

Feel free to ask if you have any further questions.

Thanks,
Larry

hurtnme · Joined: 05 Dec 2007 Posts: 7 3.96 Dollars($)

thanks for your suggestions. If we were to refinance and only leave the loan in his name, would we be faced with any fees? Would I get anything out of the house? Or would I just get off the mortgage? Thanks so much for replying.. I'm severely in OVER MY HEAD with nowhere to turn!!

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi,

If you quitclaims and you boyfriend refinance the existing mortgage, he will be the sole owner of the property and he will have pay the mortgage. You will be neither on the title of the property nor on the mortgage. You will have no financial obligation regarding this property.

"Would I get anything out of the house?"
You can request him to give you your share of equity if there is any. That means you are asking him to buy you out.

Thanks,
Larry

hurtnme · Joined: 05 Dec 2007 Posts: 7 3.96 Dollars($)

Thanks again for responding. I spoke with my lender. They suggested that we request a assumption agreement. What is that? I tried to look it up online, it just says that the person will take over the debt. So If He filled out the assumption agreement, he would be responsible for the mortgage fully, and I'd be out of the picture completely? Even if he does not refinance? Then, I would also have to do a qut claim deed too?? Why? Does that just have me give up my rights to the property? Does any of this require an attorney? Or can we do it all on our own, if we can keep it civil without letting it get too ugly??

shane · Posted: Wed Dec 05, 2007 4:01 pm Post subject:

An assumption agreement is one individual assumes sole liability for the mortgage, it also has to be OK'd with the lender, however if they were the one suggesting it they might be OK with it. The reason why they wouldn't be OK with it is they would have 1 less person to hold responsible for the mortgage payment. You would also have to quit claim off the property, the assumption agreement just has him assume the mortgage. You can probably do it without an attorney's assistance, your lender might even be able to provide you the assumption agreement form. If you are worried about doing this then I would consult an attorney. Here's an example of a mortgage assumption agreement, note what it says at the bottom of the last page.

http://www.legalforms.name/Real%20Estate%20forms/mortgageassumptionagr eement.pdf

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi,

What you got online regarding "assumption agreement" is right.

"I would also have to do a qut claim deed too?? Why? Does that just have me give up my rights to the property?"
As he is assuming your share of mortgage, you can quitclaim and that means you will have no interest in the property but before that you should ask him to give you your share of the equity.

"Does any of this require an attorney?" It is better if you take help from an attorney.

Thanks,
Larry

hurtnme · Joined: 05 Dec 2007 Posts: 7 3.96 Dollars($)

So, I talked with an attorney now. Actually a divorce attorney. Since this is kind of like a divorce. Because we have to split the house adn all of our belongings. So, the attorney said that we should keep the house and try to build more equity.. Weird.. because why would we keep it together if we are separating? He thinks we should be civil to gain equity.. Nice suggestions but.. NO thank you.. I want out.. and done with it!! So, if I do end up doing the assumption agreement, and the quit claim deed, I will be set free from the loan.. but With the assumption agreement, does the loan agency have to run his credit and make sure he can afford it on his own first? What if they do that and he can't pass to take the loan on his own? Would that happen? So, then, I do all that, and he does pass... Let's just say. How would I go about finding the equity that's in my house?? and how would he get the money to give to me? If it's gained like $20,000 equity, he doesn't just have that kind of money laying around to give to me.. How would that work? Thanks again so much for all your help.. It's helping me get the ball rolling.. but Yes, I have talked to the loan agency and tried to figure out my options, I've now talked to an attorney and tried to figure out what he can do for me, but I have made NO progress at all... How do I act on this?! Thanks so much!

shane · Posted: Wed Dec 05, 2007 11:23 pm Post subject:

It would be up to the lender to say what guidelines/procedures are for him to assume the mortgage. If I was a lender I'd make sure the remaining borrower would still be able to afford the payments on their own, might not require a credit check, but at least an inquiry into his income & other payments he has. If he can't pass their guidelines, then you would have to remain on the mortgage.

An appraisal is a good way to find out what the home is worth, usually costs $300-400 depending on which part of the country you are in. If there was equity and you wanted it, and he agreed to give it to you, then he would need to either come up with cash to pay you off, refinance the home and withdraw some of the equity, or enter into some plan to pay you off over time.

In order to get the ball rolling you'd call up the lender and say, "Let's start the mortgage assumption process."

Guest 0.10 Dollars($)

my soon to be husband is putting me on deed. what do we fill in for "to-wit"?

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi pixie,

Welcome to this forum.

You have to fill legal descriptions in that section. Do not try to fill it on your own. Take help of an attorney.

Do not forget to notarize the deed and record the deed in your county recorder office.

Thanks,
Larry

Guest 0.10 Dollars($)

I am in a similar situation with my best friend, I am moving out to get a house with my girlfriend, and he wants sole ownership. However, since the market is bad, the condo will likely be appraised at less than the value of the mortgage. Am I obligated to pay anything, since we are not selling or taking a loss? Or would it just be a matter of him putting more money down to refinance. Thanks!!

0.10 Dollars($)

Hello Pete,

Has your friend agreed to do a refinance? Have you already consulted your lender?

If your friend is doing a refinance in his name only then you are not obligated to pay anything. He will have to pay the closing costs associated with the refinance.

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.03 Dollars($)

one of you need to refinance to remove the other from the mortgage. As far as title goes, the quit claim deed can be done at the same time.

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