How can my husband get out of a mortgage he and his mother got on the house?

Question

A few years ago my Husband co-signed a mortgage taken out on the house. The house belongs to my Mother-in-law. Now that the mortgage has my husbands name on it, and we want to purchase our first home, his Mother is angry and won't take his name off and refuses to sell. We wanted to know what we can do (if anything can be done) and the smart way to go about it without damaging my husbands credit. The house is VERY small, the schools near here are terrible, and neighborhood has fallen apart. And I'm suffocating under stress. Please help.

She does not want to refinance in her name, because she can't make the mortgage payments. My husband is paying for every house bill, including the mortgage. She won't sell either.

Answer 1

Judging from your description, he only has one option - take her to court. He will need an attorney, since small claims court will not handle this situation. His attorney can get him and his mother into court appointed mediation, which may help her realize the importance of the situation and work out an agreement. Otherwise, the only option is a court ordered sale.

If you really just want to talk her into it - which it sounds like won't work, then you could always offer to buy a douplex or a house with an apartment or mother-in-law studio attached. It would keep her name on the mortgage, which if she has good credit won't be a bad thing for you, and you would not pay as much of a mortgage. It would also save your relationship with her, whereas taking her to court would obviously ruin that (although it sounds like she's not the kind of person I would want a relationship with anyway).

Answer 2

There is really no reason that I can think of that will get your husband off the mortgage.

The lender will not do it, nor can your husband just walk in and tell the mortgage company that he no longer want to be on the mortgage.

The reason he is on the mortgage is because for some reason your mother-in- law could not qualify for the mortgage on her own for some reason.

Now the reason could be that she did not earn enough money, she had poor credit, or she had too many debts on her credit report.

This probably made sense when your husband first did the co-signing and all was happy.

Has the reason changed that caused him to co-sign with your mother-in-law. If not that is why she is angry.

All she can she is her house going down the tube and no way to redeem it without her son on the mortgage.

I suggest that family members stay away from legal agreements involving money or property of investments, at sometime things will change and one will want to be removed or do something different.

There might be a solution to the problem but working with MOMS is the beginning. So there has to be something worked out with her where she feels comfortable.

You might check with a mortgage broker, he has many loans that might include a program where your husband might not have to have a low back in ratio with good credit.

If you can prove by cancelled checks that your mother-in-law is actuall paying the mortgage on this house you guys are currently living in, then there might be a progarm or two that you and your husband might qualify for with a very good rate.

Tell your mother-in-law that you need to prove she is making the mortgage payment herself, so she need to produce the cancelled check for at least 2 years. Bank statements are ok also.

You will further need to have a mortgage coupon proving the monthly payment so that it matches the monthly mortgage check.

The next things you will need are cancelled checks proving your mother-in-law pays both taxes and insurance. Taxes are paid twice a year and insurance is paid once a year.

These items might be paid through her mortgage in an escrow account.

Take these items along with the following documents. These are just a few thing needed your mortgage broker will need others, but at least you can get startedd.

#1 w-2 for 2 years from the both of you.

#2 pay stubs from the both of you

#3 2 years of your federal income tax.

Do this prior to looking for a house as you will need a pre-approve letter to take to your real estate agent, once your mortgage broker qualify you for a house.

This will probably work if he is the co-signer. If he is the primary signer you might run into a problem, so check and see who's name is the top name on the loan docs he and his mother signed.

Call a local mortgage broker listed in you telephone book and explain what you are trying to accomplish.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

Your husband made a very serious error. He guaranteed payment on a mortgage covering a property in which he has no ownership interest. The ONLY way to get out of that mortgage commitment is to refinance it. Apparently Mommy won't do that. You and your husband are stuck, sad to say. Mommy is in the driver's seat here, and apparently she's not going to relinquish the controls.

Answer 4

Your husband will probably have to get his mother to refinance the loan.

If she will not refinance the loan, you may be out of luck.

It is not likely that the lender will agree to remove his liability on that loan without refinancing it.

This is the reason that you should nover be the co borrower or co signer on a loan.

Answer 5

If Mom won't give in and sell or at least refinance to get your husband's name off the deed, you probably need a lawyer.
Good luck.

Answer 6

Contact an attorney and see if there is any way you can force her to refinance the house or force her to sell it if she can not qualify to refinance it on her own. Cosigning is a really, really, bad idea. (Which I'm sure your husband knows now.)

Answer 7

He is just a co-signer, I don't see why you just can't call
up the Mortgage Company and ask them to have his name
removed since his mother has established that she can
make her own payments.