Posted on: 14th Jul, 2005 06:07 pm
what happens if a co owner of a house decides to back out, what happens?
Hi Guest
Welcome to MortgageFit forum.
It is to be seen first whether the co-owner owns the property as a whole or a part of it or whether the co-owner jointly owns the property along with you. Whatever be the case, mortgage lenders generally don't approve such mortgage loans if the co-owner backs out.
A mortgage requires each owner of a house to sign a promissory note and a Deed of Trust that places the obligation of monthly payments on the mortgage without default. The Deed of Trust gives the lender the right to foreclose on your property in case you are unable to make regular payments.
But under the tenant in common arrangement in which a co-owner owns only a part of the property, a mortgage loan may be given to the co-owner. In this case only the co-owner needs to sign the Deed of Trust requiring him to pay the monthly installments in time, otherwise the lender has the right to conduct a foreclosure even when the other owner is not responsible for the deal.
In case the co-owner backs out, you should inform the lender so that he comes to know that you alone will be repaying the mortgage. As you do so, the title of ownership of the property will be handed over to you.
Hope you will find this information useful.
Please feel free to write back with further queries.
Regards,
Adonis
Welcome to MortgageFit forum.
It is to be seen first whether the co-owner owns the property as a whole or a part of it or whether the co-owner jointly owns the property along with you. Whatever be the case, mortgage lenders generally don't approve such mortgage loans if the co-owner backs out.
A mortgage requires each owner of a house to sign a promissory note and a Deed of Trust that places the obligation of monthly payments on the mortgage without default. The Deed of Trust gives the lender the right to foreclose on your property in case you are unable to make regular payments.
But under the tenant in common arrangement in which a co-owner owns only a part of the property, a mortgage loan may be given to the co-owner. In this case only the co-owner needs to sign the Deed of Trust requiring him to pay the monthly installments in time, otherwise the lender has the right to conduct a foreclosure even when the other owner is not responsible for the deal.
In case the co-owner backs out, you should inform the lender so that he comes to know that you alone will be repaying the mortgage. As you do so, the title of ownership of the property will be handed over to you.
Hope you will find this information useful.
Please feel free to write back with further queries.
Regards,
Adonis
I NEED SOME ADVISE IMMEDIATELY!!!! HELP!!!!!!
I AM THE CO-OWNER ON THE REAL PROPERTY SIGNING THE DEED OF TRUST BUT NOT SIGNING THE PROMISSARY NOTE. WE HOLD TITLE AS
JOINT TENANTS WITHRIGHT OF SURVIVORSHIP, BOTH BEING SINGLE PEOPLE. IT IS GOING FOR AUCTION THIS FRIDAY AT 10:30 AM.
I KNOW I HAVE A UNDIVIDED HALF INTEREST IN THE PROPERTY AND I DID NOT PROMISE TO PAY ANY MONEY BACK TO ANYONE FOR ANYTHING.
CAN I FILE A LIEN AGAINST THE PROPERTY TO PROTECT MY INTEREST???
WHAT OTHER RIGHTS DO I HAVE TO KEEP MY HOME???
THE PROPERTY IS LOCATED IN THE STATE OF MISSOURI. PLEASE ADVISE AS QUICKLY AS POSSIBLE.
I AM THE CO-OWNER ON THE REAL PROPERTY SIGNING THE DEED OF TRUST BUT NOT SIGNING THE PROMISSARY NOTE. WE HOLD TITLE AS
JOINT TENANTS WITHRIGHT OF SURVIVORSHIP, BOTH BEING SINGLE PEOPLE. IT IS GOING FOR AUCTION THIS FRIDAY AT 10:30 AM.
I KNOW I HAVE A UNDIVIDED HALF INTEREST IN THE PROPERTY AND I DID NOT PROMISE TO PAY ANY MONEY BACK TO ANYONE FOR ANYTHING.
CAN I FILE A LIEN AGAINST THE PROPERTY TO PROTECT MY INTEREST???
WHAT OTHER RIGHTS DO I HAVE TO KEEP MY HOME???
THE PROPERTY IS LOCATED IN THE STATE OF MISSOURI. PLEASE ADVISE AS QUICKLY AS POSSIBLE.
hi swendt,
welcome to mortgagefit forum.
i can very well understand your situation and my sympathy is with you. since you have not signed the promissory note, you are not obligated to pay the mortgage. but you have signed the deed of trust and you also have the right of survivorship. so you can talk to the mortgage company and voluntarily agree to pay off the part of the mortgage that can help you to retain your interest in the property. in this way you can prevent the auction.
another way to retain your interest is to refinance the mortgage with another loan, with only your name in the promissory note. this is the only way by which you can keep your home. but before you do so, just consult a mortgage attorney so that he can guide you for further course of action.
hope you have benefited from this information.
please let us know if you have any other query. also sign up with us at http://www.mortgagefit.com/signup/ to avail free consultation on further queries.
regards,
sam
welcome to mortgagefit forum.
i can very well understand your situation and my sympathy is with you. since you have not signed the promissory note, you are not obligated to pay the mortgage. but you have signed the deed of trust and you also have the right of survivorship. so you can talk to the mortgage company and voluntarily agree to pay off the part of the mortgage that can help you to retain your interest in the property. in this way you can prevent the auction.
another way to retain your interest is to refinance the mortgage with another loan, with only your name in the promissory note. this is the only way by which you can keep your home. but before you do so, just consult a mortgage attorney so that he can guide you for further course of action.
hope you have benefited from this information.
please let us know if you have any other query. also sign up with us at http://www.mortgagefit.com/signup/ to avail free consultation on further queries.
regards,
sam