Help. i want out?

Question

me and my boyfriend bought a house together.......well....i want out.....he can't refinance because of prepayment penalties....he can't qualify and assume loan because his credit sucks....if i just leave then my credit will go bad....i am scared and i don't know what to do. i want out so bad. we can't sell because it would take too long....ive exhausted all venues.....give me some ideas please.

Answer 1

After reading all the responses - there was a few good suggestions. I agree, call your Mortgage Lender, see if they can re-finance your home, in boy-friends name. I do not think they will wave the pre-payment, but it does not hurt to try.

What are your b-friends 3 credit scores? If your middle credit score is 500 or higher, anything is workable. He may only get 80 loan to value (on a 500 mid score)- say the home got appraised at 100,000 than he would get 80,000 (follow me). I take it you have only been in the home 1 possibly 2 years to have the pp. left. If the home has raised in value, than that would be a blessing for you. If his middle score is higher than 540 - he would be able to borrow more. 560 + can be 100 percent financing. Not sure if this helps or not.

Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.

Another thing is got to www.hud.gov

or

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Welcome to the USDA Income and Property Eligibility Site
1. This site is used to determine eligibility for certain USDA home loan programs. In order to be eligible for many USDA loans, household income must meet certain guidelines. Also, the home to be purchased must be located in an eligible rural area as defined by USDA.
To learn more about a USDA home loan program, click on the Loan Program Basics link on the left side of this screen and select one of USDA's home loan programs.
To determine if a property is located in an eligible rural area, click on the Property Eligibility link on the left side of the screen and select a Rural Development program. When you select a Rural Development program, you will be directed to the appropriate property eligibility screen for the Rural Development loan program you selected.
To determine income eligibility of an applicant/household, click on the Income Eligibility link on the left side of the screen and select a Rural Development program. When you select a Rural Development program, you will be directed to the appropriate income eligibility screen for the Rural Development loan program you selected.
To find out how to apply for a Rural Development Loan, click on the Contact Us link on the left side of the screen and then select a Rural Development Loan program.

Rural Housing Direct Loans are loans that are directly funded by the Government. These loans are available for low- and very low-income households to obtain homeownership. Applicants may obtain 100% financing to purchase an existing dwelling, purchase a site and construct a dwelling, or purchase newly constructed dwellings located in rural areas. Mortgage payments are based on the household's adjusted income. These loans are commonly referred to as Section 502 Direct Loans.
2. Purpose: Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.
Eligibility: Applicants for direct loans from HCFP must have very low or low incomes. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to review area income limits for this program. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance, which are typically within 22 to 26 percent of an applicant's income. However, payment subsidy is available to applicants to enhance repayment ability. Applicants must be unable to obtain credit elsewhere, yet have reasonable credit histories. Elderly and disabled persons applying for the program may have incomes up to 80 percent of area median income (AMI).
Terms: Loans are for up to 33 years (38 for those with incomes below 60 percent of AMI and who cannot afford 33-year terms). The term is 30 years for manufactured homes. The promissory note interest rate is set by HCFP based on the Government’s cost of money. However, that interest rate is modified by payment assistance subsidy.
Standards: Under the Section 502 program, housing must be modest in size, design, and cost. Modest housing is property that is considered modest for the area, does not have market value in excess of the applicable area loan limit, and does not have certain prohibited features. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards.
Approval: Rural Development officials should make a decision within 30 days of the Rural Development office's receipt of the application.
Basic Instruction: 7 CFR Part 3550 and HB-1-3550

Section 502 Guaranteed Loan Program:
1. Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.
Eligibility: Applicants for loans may have an income of up to 115% of the median income for the area. Area income limits for this program are here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories.
Approved lenders under the Single Family Housing Guaranteed Loan program include:
Any State housing agency;
Lenders approved by:
HUD for submission of applications for Federal Housing Mortgage Insurance or as an issuer of Ginnie Mae mortgage backed securities;
the U.S. Veterans Administration as a qualified mortgagee;
Fannie Mae for participation in family mortgage loans;
Freddie Mac for participation in family mortgage loans;
Any FCS (Farm Credit System) institution with direct lending authority;
Any lender participating in other USDA Rural Development and/or Farm Service Agency guaranteed loan programs.
Terms: Loans are for 30 years. The promissory note interest rate is set by the lender.
There is no required down payment. The lender must also determine repayment feasibility, using ratios of repayment (gross) income to PITI and to total family debt.
Standards: Under the Section 502 program, housing must be modest in size, design, and cost. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. New Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards. Existing manufactured housing will not be guaranteed unless it is already financed with an HCFP direct or guaranteed loan or it is Real Estate Owned (REO) formerly secured by an HCFP direct or guaranteed loan.
Approval: Rural Development officials have the authority to approve most Section 502 loan guarantee requests.
Basic Instruction:7 CFR Part 1980.

Answer 2

Wow tough question but I hear this alot more than you might think. Let me give you a couple ideas and I may be repeating somethings other have already said. So we can't sell as it would take to long and he can't refinance because he "credit sucks". It appears that you have two options, have someone lease it from you or have him find someone who will co-sign with him. If you have someone lease it make sure you have a contract. Now the co-signer can be anyone with decent credit. Forget about the prepayment penalties, your going to just have to eat those in order to get out. Your back is against the wall but you can get out with your good credit intact still. I hope this helps you but if you need help email me [e-mail].

Answer 3

Everything is negotiable and sometimes renegotiable. First, why is selling going to take too long. I have sold houses in hours? If you contact the mortgage lender and explain the situation and ask for a deferrment until the house is sold and then negotiate a prepayment penalty out of the proceeds. They are going to want the house listed with a realtor as proof that you are trying to sell. Ask for a recommendation from them if you don't have anyone you want to use. Try the realtor you bought the house from. He or she will already be familiar with it.

Whatever you do is going to take cooperation with your boyfriend. I gather from your tone that that might be the bigger problem!

Answer 4

these situations are always difficult. If your name is on the loan then you are partially responsible for the debt... if your name is on the deed then you are partially responsible for the property. Your credit is at risk unless your boyfriend is willing to cooperate with you or agrees to buy you out.

Unless you wish to rent out the home and the rent is enough to cover the mortage. This would allow you and your boyfriend to move out and keep your credit intact.

First review your mortgage documents, there may be a clause in there that won't allow you to lease the property to another person.... but under extreme circumstances the bank may reconsider or you just don't tell them.

Good luck.

Answer 5

Why don't you go explain the situation to the mortgage lender? And tell him that he may have to foreclose on the house because you don't want to keep up your obligations. In the future, never get involved in financial transactions with a boyfriend/girlfriend and never get a loan with prepayment penalties.

Answer 6

Go back to the mortgage consultant who helped you get the loan. Explain the situation and see what ideas they have.

Answer 7

Hook up with one of those places that buy your house for cash. You'll lose a lot of money, but you'll be out from under with your credit intact.

Answer 8

Sam B hit it on the head. The only way to completely FREE yourself from it will probably be to sell it.

Answer 9

you think you can survive, in today´s society! you don´t have any relatives where you can make a new start! J

Answer 10

sell and buy a new house

Answer 11

sound like u need judge judy or someone