Also, the house is 1/2 mine and 1/2 my fathers. He has creditors going after him. If the creditor puts a lein on the house, can they affect my 1/2? Also, when the house sells-can the creditors go after the equity made?
2007-06-21 05:10:45 · 9 answers · asked by tradu77 1 in Business & Finance ➔ Renting & Real Estate
You can refinance, but in most cases it would be a waste of money if you expect the house to sell fairly quickly. You may pay closing costs on the refinance, and if you get an offer on the house before the refinancing is complete, you will probably be expected to pay all the costs anyway.
The answers to your other two questions are yes. If the creditors have already taken your father to court for a judgment against him, it may be worth refinancing to get his name off the title so they can't attach a lien to it. If not, you still have at least a couple of months before they can do that. It is a legal process they have to adhere to, not just file a paper saying they have a lien on it.
2007-06-21 05:19:40 · answer #1 · answered by Brian G 6 · 0⤊ 0⤋
1.) Refinancing a house costs money.
2.) The only way that you could refinance it alone would be for him to sign it over to you first.
3.) Yes a lien on the house from his debt will affect your half (it's not 1/2 like you own the kitchen and he owns the bathroom).
4.) Yes, when the house sells the liens will have to be paid before you are and if any creditor knows that you are selling they will be sure to lien your property if they can. Now, if there is no lien yet and you each get your cut of the money and go your seperate ways then they can not likely go after your share unless he tries to give you his share. For Example, if you or he are thinking that you will sell, get the money then he will claim BK it's not a good idea if he is going to give you his share because you when you file BK they ask if you've given anyone money and since you are both on the title to the house together they could probably subpeona your bank records to see if you are hiding money for him.
** If sale is inevitable then you might try this. Have him "Quit Claim" the property over to you. That means he gives up his claim to the property and get it filed with the county for property taxes. That will stop any more liens from his debt because he will no longer be the home-owner. It will not dissolve any liens that have already been posted. It depends on the type of loan you have as to whether they will even be notified. If the mortgage company is notified then they may force a refinance or sale. But by the time they are notified you may have already sold.
You could also just get your father to pay minimum amounts on his debt until the property is sold to keep any more liens from being posted.
2007-06-21 05:24:46 · answer #2 · answered by Not Laughing w/ U 3 · 0⤊ 0⤋
The creditors may have already cause you big trouble. If they have a lein on your house you will have to pay that first before anything else out of the sale. Also with your fathers name on the house and having bad credit you may not qualify for a refinance. Also, why do you want to refinance? This would have to be paid off as well as the mortage when the house is sold. These days you might refinance and not make enough on the sale to cover both the mortage and the refinance. I have a friend who refinanced while housing rates were high. He used the money as a down payment on his new house. Now the selling price of his prior home has dropped by about 70,000, its a condo and all have dropped. Every month he is operating in the hole, he has 3 mortages to pay, his condo, his refinance, and his new house. H'es about to lose both the condo and the new house. Be very careful in what you do in this real estate market.
2007-06-21 05:24:28 · answer #3 · answered by sweet sue 6 · 0⤊ 0⤋
There are several questions here.
Fannie Mae and Freddie Mac guidelines (most lenders use the guidelines when underwriting loans for approval) state that a property is unacceptable for financing if it has been listed for sale by the current owner within the last six months. There are always exceptions to the rule, but that is the guideline.
When a creditor puts a lien against a home it is against the title to the property, regardless of who else other than the debtor might be in title. If they lien the property you must pay them in full from the proceeds of sale in order to provide the buyer with clear title.
2007-06-21 05:18:34 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Most lenders won't let you refinance if the home is on the market, and actually for 6 months after it's been off the market.
There's a few (Citimortgage is one main one) that will let you refi, but only if you take it off market. But they don't make you wait 6 months like everyone else.
The creditor lien would impact the entire property. It's up to you and your dad to settle up your own accounts.
And I would think it's easier for the creditors to go after cash in the bank than cash tied up in equity in a home. He might consider putting his cash into an account that is not his.
2007-06-21 06:54:34 · answer #5 · answered by Yanswersmonitorsarenazis 5 · 0⤊ 0⤋
There are exceptions; you need a good loan officer to make it happen. I recommend First National Banc Corp. They do business in most states and are your best opportunity for someone to say yes. ADDITIONALLY, IF YOUR CREDIT IS SUSPECT, THEY SOMETIMES FRONT THE MONEY TO GET YOU INTO A CREDIT RESTORATION PROGRAM SO THAT YOU CAN QUALIFY FOR A LOAN. Check out the free evaluation form at the source website and a First National loan officer will contact you within 24 hours. Good luck.
On a side note, the same folks who have the free evaluation form also do debt arbitration and may be able to help your father save 50% or more on his delinquent debts through debt arbitration especially if he wants to use his equity to pay the bills.
2007-06-22 02:42:30 · answer #6 · answered by stephen l 2 · 0⤊ 0⤋
Ugly mess, but a lien against the property will prevent a clear title at time of sale. You can't put a lien on 'half of a property'.
With any kind of luck, there will be sufficient proceeds from the sale to pay off any such liens at time of closing, from your FATHER'S half of any proceeds/profit.
If this is not the case, you might be wise to buy out your father BEFORE any such liens can be filed, if he will agree to this. Of course, this would take a refinance on your part for the full amount of money needed to buy out your father. Then you have to agree with your father what the house is worth.
In other words, this ain't pretty, but you can get around it if your father is cooperative with you.
2007-06-21 05:23:51 · answer #7 · answered by acermill 7 · 0⤊ 0⤋
yes you can refinance & buy out your father's share. the creditors can put a lien. when the house is refinance or sold, that lien has to be paid. creditor can't go after the equity, they can only go after the debt.
2007-06-21 05:21:16 · answer #8 · answered by hi91977 3 · 0⤊ 0⤋
specific, you may, even nevertheless that is going to cost your cash to do the refi. in case you sell quickly, that is going to look like a waste, yet once you're caught with the domicile for a protracted time, possibly it develop into for the suitable. I refinanced a 12 months in the past, and that i'm promoting now. many times, even it particularly is considered too close, yet there is not any actual restrict on it...it basically does not appear like it would be to your earnings in case you may survive devoid of the refi.
2016-10-18 06:19:18 · answer #9 · answered by contino 4 · 0⤊ 0⤋