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Purchase house with family

Posted on: 30th Jan, 2007 02:48 pm

My brother and I purchase a house together. He is living in the house with his family and he is paying the mortgage but he been late with it. The loan is sole in my name and he is co-owner. How can I get my name out and tranfer the loan to him?

Need solution
yes if the loan goes into default your credit score will get negatively affected. your brother should refinance the loan in his own name.
Posted on: 30th Jan, 2007 03:03 pm
i agree with juoer, as your brother is co-owner of the house, if his credit profile is good then the lender will agree to have the mortgage refinanced in his name. this way you will have no obligation left to make payments towards the mortgage and it will also not appear of your credit report.

if you also want to transfer rights you have over the property in his name then a quit claim deed can be used.

jeff harrington
Posted on: 30th Jan, 2007 03:09 pm
My brother credits is not good that why I was ask to him to bring his credit up but now my relation with my family is unstable.
Posted on: 30th Jan, 2007 03:15 pm
In this situation also the mortgage can be refinanced but rates will be higher than normal. If possible you can wait for some more time to let his credit score improve and then refinance the mortgage.
Posted on: 30th Jan, 2007 03:37 pm
hi kkhamsingratsombat,

consult the lender if novation will be allowed. it is a method by which the mortgage can be transferred in your brother's name with the same terms and conditions for the loan as they are now.
Posted on: 30th Jan, 2007 03:50 pm
Welcome KKhamsingratsombat,

To me novation seems to be a better option than refinance as it will save thousands of dollars which you pay otherwise in a refinance. To know more on this, refer to a thread where the community has discussed about Refinance and Novation .
Posted on: 30th Jan, 2007 08:31 pm
I hate to be pessimistic about this, but why in the world would the lender consider novation on a loan with delinquent pay history?


I feel for you in this situation. Mixing finances with family can really put a strain on relationships. That being said, your choices are probably fairly simple at this point.

1) have your brother pay you, then you pay the lender. That way you know the loan is paid on time. If your brother doesn't pay you in time or doesn't pay the full amount you can choose to save your own credit history by making the payment for him. At least you have some control

2) write up some type of agreement between the two of you. What does he think is fair for you to do if he stops making payments? have it in writing to deal with future problems.

3) if he can qualify to refinance, try and get him to take over the mortgage with a new note in his name. If he has paid (and can prove it) the last 12 mortgage payments without being OVER 30 DAYS LATE more than twice he may very well be able to get financing. It may be a higher rate then he has now, but apparently the way it is now isn't something you feel comfortable continuning with...right?

The best way to deal with a financial issue among friends or family is to stay unemotional. Try to approach each solution as you would with a complete stranger. Be as businesslike as possible.

good luck.
Posted on: 30th Jan, 2007 10:21 pm
Thanks for the information Ken. I was unaware of this whole thing. But I am sure I"ll get to learn a lot from you through this forums.
Posted on: 31st Jan, 2007 03:12 am
I agree with Ken, in normal circumstances lenders hardly agree to novation. When the person is not regular with the payments there are very bleak chances they would agree to such an option.
Posted on: 31st Jan, 2007 06:32 pm
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