dani asked:
I have a contract on a home and we’re supposed to close in one week. My boyfriend and I are both on the mortgage loan. I tried to get the mortgage broker to switch it to just be in my boyfriend’s name, without me involved. Well, he dragged his feet and today told me to do so would take another 21 days which would put us behind on closing and my bf is pressuring me to get over it so we don’t have to postpone. So, My question is, if I am on this joint mortgage loan with my bf, and something bad happens between us and I want out of the relationship, what can I do. I’ve heard I can have my name removed from the loan so that the lender can never come after me for funds in the future? is this true? Is it expensive/complicated? Or is the only option to refinance the mortgage just in his name? What is the process for this? Thanks for any help. I feel stuck between a rock and a hard place. Want to know my options should something go wrong with us… Thanks
Tony
I have a contract on a home and we’re supposed to close in one week. My boyfriend and I are both on the mortgage loan. I tried to get the mortgage broker to switch it to just be in my boyfriend’s name, without me involved. Well, he dragged his feet and today told me to do so would take another 21 days which would put us behind on closing and my bf is pressuring me to get over it so we don’t have to postpone. So, My question is, if I am on this joint mortgage loan with my bf, and something bad happens between us and I want out of the relationship, what can I do. I’ve heard I can have my name removed from the loan so that the lender can never come after me for funds in the future? is this true? Is it expensive/complicated? Or is the only option to refinance the mortgage just in his name? What is the process for this? Thanks for any help. I feel stuck between a rock and a hard place. Want to know my options should something go wrong with us… Thanks
Tony
Jesse
You will be responsible for payments as long as your name is on the mortgage. If it defaults it will be reflected on both your credit reports.
To get your name off the mortgage your b/f will need to refinance the mortgage. It will entail going through a lender and getting approved for a new mortgage, paying closing costs, etc. Basically all that you are both going through now.
On a personal note, it sounds like you aren’t all that sure of the future for you two. You need to think long and hard about this because if you are on the mortgage note and the relationship goes bad and ends up in a breakup it may not be easy to get him to even go for a new mortgage. If your name is on the title of the property (which it definitely should be if you are going to be financially responsible for the mortgage), you could try and force a sale of the house to get him to either buy you out (forcing a refinance) or force a sale to get you out of the debt.
Comment by Patrick — April 22, 2010 @ 11:18 pm
Timothy
First let me honest with you. When I read your post my first reaction was that you should not be signing to buy a house if you are already questioning the future of your relationship. Once you get that loan you are both responsible for the payment. Anyone who tells you different is full of it and isn’t looking out for your best interest. It’s a slow market and banks are desperate take the extra 21 days to get off the paperwork before it’s too late.
Comment by mohrloans — April 25, 2010 @ 4:27 pm
Danny
If it takes both of you to qualify now, it will take both of you to qualify later, and refinancing is the only way to get off once you are on. In all likelyhood he won’t be able to refi into his name for a long long time and you will be equally responsible. Listen to the people who have answered before me. DON’T SIGN! If your relationship is destroyed because you want to wait, then you have your answer to the relationship part of the question, you didn’t want to be stuck in that anyway.
Comment by Gregg — April 26, 2010 @ 11:22 am
Lloyd
yep,Talk to the mortgage company if your already on it they will tell you how to get out of it. If your not on it have him put the mortgage in his name and “quit claim deed ” you so that your name is also on the house deed, that’s what I did. He owes the mortgage but I own the house so he cant sell with out my permission. The only draw back is that you cant sell it without his permission. ( I didn’t think that far ahead at the time lol) Oh almost forgot if you didn’t have the mortgage yet don’t tell the mortgage company that he is going to Quit Claim you on the house, it’s not illegal but they don’t like it.
Comment by cinbadd65 — April 27, 2010 @ 2:22 am
Milton
Ok, first of all, the mortgage broker is LYING to you.
All they have to do is pull your information out of the file and send it back to the underwriter, which depending on the complexity of their system, can take anywhere from 15 MINUTES to 3 days. It’s called “removing a borrower”, it does not require originating a new loan, and it’s done all day, every day.
If you purchase this home with your boyfriend, and you break up, and if you cannot reach an agreement of who owns the house, your ONLY option, is to seek a legal remedy in court. Neither one of you will be able to sell or refinance without the signature of the other.
With that said, you can’t ‘sneak’ and have his name only on the loan, and don’t be suprised if your boyfriend might agree to be on the loan alone and DENY your name on title…after all, your name shouldn’t be on the title if you are not married and not on the hook for the loan.
What I think the mortgage broker is doing, is that it almost sounds like that you won’t qualify for the loan if only one of you are on it…and that is why he is lying in saying that it will take an additional 21 days.
Now, keep in mind, if BOTH of you are on the sales contract, that is NOT a legal reason to delay the closing, and you can get into some hot water with the sellers if you miss your closing date, especially at this late date.
At the same time, there is no way I would purchase a property with someone that I wasn’t related to by blood or marriage…too many legal issues that come up and as an unmarried couple.
Proceed with caution.
Comment by Mary B — April 28, 2010 @ 4:25 pm
Billy
if you are unsure do not place your name on the note,
if you two where to separate you will still be liable for the note until he refinanced, in today’s market, not knowing the terms of your loan, he might not be able to refinance any time soon, then you will be stuck to this guy even thought you are not dating because of the note
Comment by goz1111 — May 1, 2010 @ 2:46 am
Ray
Why would you be buying a house with your boyfriend? It doesn’t seem like you have much of a future together.
YOU ARE responsible for the mortgage payment if you sign. He would have to refinance – and you CAN’T MAKE HIM do that, so if you break up, chances are, he’ll just let the house go into foreclosure and you’ll BOTH be responsible.
Get your name off NOW or it’s never going to happen.
We’re talking about 21 days here, it’s not a big deal.
Comment by I_Love_McRedneck — May 2, 2010 @ 9:32 pm