I own a home with my father - who is in huge financial debt. I am fearful that he will default on the mtg and in turn that will effect my credit. I currently own a condo and my mtg has a high interest rate due to the ownership of the first home. What are my best options to get myself out of this situation. He wants to refinance to pay off his debt - but I believe he will be unable to do. I just want to save my credit before its too late.
2007-07-19 02:27:46 · 7 answers · asked by Carolyn D 1 in Business & Finance ➔ Renting & Real Estate
Him refinancing or selling is the only option, the bank rather have two people to pay the mortgage than one person. When you agreed to take a mortgage you owe the money, if he doesn't pay you have to and if he is late you are late. Buying a house with him was a choice you have to live with until the house is sold or refinanced.
2007-07-19 02:35:07 · answer #1 · answered by shipwreck 7 · 1⤊ 0⤋
It depends. Legally, the judge would have to remove the liens from the house. If the debts are only his, you would have to prove it in court, then have the judge remove the liens and have them go after your husband (or ex by them I would hope). The problem is, when you are married, debt is usually considered as “joint”. So if he owns something you do too. As I said, it will take a judge to do the right job, or some agreement with the places he owns the money but that is kinda almost impossible as they don’t care about your pitiful life (no offense, talking as if I was them), they just want the money back and that’s it. So you are stock in this problem because you more likely won’t find a place that can give you a loan if you have a lien on the house, starting with, is illegal to do so unless they approve the loan and take whatever money he owns to pay back the lenders. Either that, or have a judge take the liens away. I can tell you one thing, because of the trading market problems and the FED, getting a loan form a bank is almost impossible now. Unless you have a clean record, an almost perfect credit score, and you don’t own no money, you can forget about getting a loan. If you need that loan soon, you better hurry up with the legal processes because those take time and you probably won’t be able to get any thing solve for many months from now. Good luck.
2016-03-15 06:49:30 · answer #2 · answered by ? 3 · 0⤊ 0⤋
The ONLY way to remove your name from this co-mortgage is to refinance it without your name on it. Lenders will not willingly remove a responsible party in any other fashion.
If dad cannot refinance on his own, you're stuck until the mortgage is paid off.
D NOT follow others advice concerning filing a quit claim deed. That is the WORST thing you can do. In filing a quit claim, you give up any and all ownership interest in the property, but you remain liable for the mortgage you signed.
It puts you in an even worse situation that you are NOW in.
2007-07-19 03:35:08 · answer #3 · answered by acermill 7 · 1⤊ 0⤋
You can go to your local tax office and file a quit claim deed for the property at no charge. The mortgage loan I think would have to be refinanced for you to be taken off. Talk with the mortgage company see what options you have with them. Remember that company does not want to lose money. They should be able to come up with something.
2007-07-19 02:41:22 · answer #4 · answered by tedc57 1 · 1⤊ 0⤋
You will have to get your father to agree to file a quit claim. That means you are no longer responsible for any part of the debt and that you also have no claim to any of the property. The complication here is his poor financial status. I am not sure if the bank will agree to refinance without your name remaining on the property. It might be in your best interest to keep your name on the mortgage until he refinances. Work with the refinancer to make sure the "extra" money he gets does in fact go straight to his creditors. After his financial situation improves, you might then pursue getting a quit claim.
2007-07-19 02:40:20 · answer #5 · answered by arkiemom 6 · 0⤊ 0⤋
He would have to get the house financed on his own in order for you to be off the mortgage. In other words he would have to refinance the enitre mortgage on his own. I would not take my name off of the property because if he does default at least you have the option of making him sell the house in order to avoid foreclosure. I would keep a close eye on the payments being made. Check with the morgage company each month to insure payment has been made and if it has not been then speak to your dad. If he can't make payments then he should sell the house. If he can't refinance on his own then your only real option is to stick it out or sell the house. You can also request the morgtgage company to send you a statement each month also. Good Luck!
2007-07-19 02:40:40 · answer #6 · answered by kandlsnana 1 · 0⤊ 0⤋
Talk to your dad and get him to refinance the house. At that time you can then be taken off the mortgage. Then you would need to go to land records (usually at a court house) and you would need him to come with you to take your name off the deed.
He should be willing to do this if he has your best interest in mind. Or just SELL THE HOUSE DAD!
2007-07-19 02:58:58 · answer #7 · answered by happy 2 · 0⤊ 0⤋
Filing a quit claim deed will not say that you are free from all debt. It will only say that you are not an owner in the home. To get yourself off of the mortgage, your father will have to refinance in his name only. From what you have said, it does not sound like this will be possible. It kind of sounds like you might be stuck unless you can get him to sell.
2007-07-19 03:37:54 · answer #8 · answered by Jen 1 · 0⤊ 0⤋