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removing a co-borrower from a mortgage loan

Posted on: 30th Aug, 2006 01:59 am
I have a big problem
I own three multi-family houses.. the first house, my uncle helped me buy it because I couldn't qualify for the loan myself. It is almost 4 years now. He was trying to buy a house a month ago, and the lender told him that he has a house under him and he don't qualify for another loan. My question is, is there anyway I can remove him from the mortgage without refinancing. Currently I have a 5.5 30 year fix on the mortgage, and I don't want to lose the rate nor refinance.
my gut-level reaction to how the bank will view your situation is not favorable, maria. since only 3 months have elapsed from the time you went on that loan as a cosigner, your parents will not have established much of a track record; a track record is key in their attempt to refinance.
you may well be stuck at this time.
Posted on: 07th Apr, 2009 01:18 pm
if your dad is making "cash" income, there's not much flexibility in lending guidelines to help you out in this situation.
Posted on: 07th Apr, 2009 01:19 pm
It can be done but here are the reasons why the lenders don't take the risk-
1. The person remaining on the mortagage may be 'less efficient' to repay the loan in bank's opinion
2. There is a risk that, if the remainder gets defaulted, the lender's decision goes wrong by allowing a person to own a deliquent property -whose loan was already rejected for less fullfilling documents. Thus the decision maker may be questioned for that.
Posted on: 08th Apr, 2009 11:58 pm
huh?
Posted on: 09th Apr, 2009 06:18 am
hi. i was added to my father's loan via novation.. all we did was record a grant deed that added me to title. they did not run my credit or check my income.. however, now i want out of this liability and they won't take me off without refinancing which is not possible... they lender offered to take my name off the loan by removing me from title but they say i am still liable in case of default from my father.. how is this possible that i am trapped? i never signed any loan documents or promissory notes.. just sent them a copy of the recorded title..

im thinking that the people at the assumptions dept. (gmac) are confused and think that i was initially a coborrower on the loan when i was not..

any help would be appreciated..
Posted on: 10th Apr, 2009 06:10 pm
Hi Marvin,

They are right in saying that even if you remove your name off the title, you will still be liable for the mortgage in case of a default. A refinance seems to be the only way to remove you from the loan.
Posted on: 11th Apr, 2009 02:31 am
Six years ago I used to work as mortgage loan processor and if we showed another person made the payments on a debt for the last 12 months (usually via copies of the cleared checks) we wouldn't hold the debt against the borrower. I don't know if they still do this. However, the borrower may not qualify for 1st time home buyer programs, and any late payments wouldn't be a problem.
Posted on: 05th May, 2009 09:03 am
Sorry, late payments WOULD be a problem.
Posted on: 05th May, 2009 09:04 am
garner, you are correct in what you've said. i'm not certain that every underwriter will apply the same standard when a different party is making payments. i'd like to think that's the case, but we've seen such enormous changes in how loans are processed, underwritten and closed in the last couple of years, that it's anyone's guess.

it still ought to be valid, though.
Posted on: 05th May, 2009 09:07 am
Dear friend this is very difficult to transfer but you can discuss with lender tell your problem he will give you proper advoice.
And you should confirm with your uncle to transfrring ownership.

Thanks
Dilip
Posted on: 09th May, 2009 07:50 am
dilip!!!!!!! to whom are you responding? are you even reading these? at all???
Posted on: 09th May, 2009 10:10 am
I am getting refiancing done on my home loan along with my husband but i am removing my name from co-borrower. If i remove my name will it effect my credit score in any ways ?
Posted on: 28th May, 2009 09:33 am
brio, i suspect the ultimate result is going to be negligible. your credit report would show you as having been obligated on what is now a paid in full mortgage loan. that you no longer would have that loan as an active, open account wouldn't hurt you nor would it benefit you all that much.
Posted on: 28th May, 2009 10:36 am
hi, my mom and my sister helped us to buy a houses 5 years ago. i would like to know if there is a way that we can remove my mom from the loan without refinancing. a quitclaim deed has already been signed by my husband and i and the lender is awared.
Posted on: 13th Jun, 2009 07:14 pm
hi, my mom and my sister helped us to buy a houses 5 years ago. i would like to know if there is a way that we can remove my mom from the loan without refinancing. a quitclaim deed has already been signed by my husband and i and the lender is awared.
Posted on: 13th Jun, 2009 07:14 pm
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