transfer of ownership on co-borrowers

djere · Joined: 17 Nov 2007 Posts: 1 1.57 Dollars($)

4 yrs ago my friend and i purchased a house for 210,000 and the idea was to fix it up and live in it until one wanted out or to have sole owership of the house. 2 yrs ago i kicked him out due to our friendship deteriating and living conditions worsening. i want out of this house yesterday, he would like to have the house but is unable to refinace the home in his name right now due to he is self employeed and really can not afford the house on his own, not my problem. is there away to transfer the remaining balance of the mortgage to his name, he is a co-borrower, and remove my name from the mortgage, deed, or any other legal reprecussions if he were unable to make payments on it in the future? he has to wait 3-4 months to prove his income for tax purposes to the bank, and with the economy in michigan, i have my doubts that he will be eligable to be refinanced. what is my best course of action to remove my name and responsibility of the mortgage to simply move on with my life and not be stuck with a bum or a friend finanically hurting me? he also is late on mortgage payments every month and it hurts my credit score long before it reaches his being as that i am the first one named on the mortgage. please advise. thank you.

0.10 Dollars($)

Hi Djere,

Well, you are not going to like what I have to say...but unfortunately, there is no easy solution to your predicament. It would nt be difficult to get your name off the deed...but I woudn't recommend that. The only way you can get off the mortgage, knowing that there are already multiple late payments, is for him to refinance it into his name only. That is the only way you will be able to achieve that.

He might want to consider working towards being able to refinance it...meaning talking with an experienced mortgage broker that will help guide him on what he needs to do to become an eligible borrower...he may already be, but self-employed loans have become more difficult to get...but it isn't impossible, and just requires makeing a plan and working it.

He coulds also focus on getting a roommate to help offset his expense with the mortgage, so he can start making his payments on time. Right now, there is little or no leniency with lenders on late payments for self employed borrowers, or any borrower for that matter...but again, I think the key is making a realistic pan and working towards refinancing.

The only good news that I can report is that regardless of who's name is first on the mrtgage, both people with get equal derogatory marks on their creidt for late payments...if that makes you feel any better.

Sorry I didn't have better news...

kpatrick · Posted: Sat Nov 17, 2007 6:23 pm Post subject:

Oops! Sorry, I didn't notice I wasn't logged in...that was me above.

jenkin7 · Joined: 04 Jun 2007 Posts: 939 140.77 Dollars($)

Hello Djere,

Even I agree with Kpatrick.

The only way to take your name out of the mortgage is refinancing it in your friend's name only. Now, with his present financial situation, it seems difficult for him to do that.

He has to remove the late payments from his credit and improve the score before the lender agrees to work out a refinance.

He also has to qualify for a mortgage assumption if you want to transfer the remaining mortgage over to him.

Guest 0.10 Dollars($)

so jenkin you mean djere should sell the home to her friend because if she doesn't sell, how does assumption come in?

jenkin7 · Joined: 04 Jun 2007 Posts: 939 140.77 Dollars($)

Hello Tina,

You are correct.

Djere has to sell the home to her friend so that he may assume the existing mortgage. But he can do that only when the loan is assumable and he is approved by the lender.

lisascherzer · Joined: 04 Jan 2008 Posts: 599 69.58 Dollars($)

Unfortunately the only way to remove your name from the mortgage is to have him refinance only in his name. What about selling the home? That might be an option.

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