Posted on: 22nd Apr, 2007 03:42 pm
I co-purchased a home for a friend of a friend and was compensated 20k in doing so because i had the better credit score. after closing the other person was put on title and deemed responsible for all mortgage, tax and insurance payments however after 3 months has since defaulted on the loan payments and now I have paid the last 2 months. part of the agreement states if she defaults her name is to be removed from title. The lady has stopped all communication and my hands are tied the loan is only in my name. I want to do a short sale because I cant afford the payments and i dont want to ruin my credit which has been hit with a 30 day late already. She occupies the house I live at my other house currently? Can i start the eviction process since she has not kept her end of the agreement?
Hi Elove,
Welcome to the forums.
Legally you are responsible for paying off the loan as the document has your name on it. But you have said that the other person after being put on the title was deemed responsible for the loan. Was there any legal signing of documents stating from then onwards, the person will be liable for the loan? If yes, then you may start the eviction process. But discuss the issue with the lender and an attorney.
Thanks,
Sara
Welcome to the forums.
Legally you are responsible for paying off the loan as the document has your name on it. But you have said that the other person after being put on the title was deemed responsible for the loan. Was there any legal signing of documents stating from then onwards, the person will be liable for the loan? If yes, then you may start the eviction process. But discuss the issue with the lender and an attorney.
Thanks,
Sara
Well Elove, I think the other way. If the mortgage isn't paid off, the lender may demand the payments from you. In that case, you should consult the lender and ask him if he will allow you to go for a short sale. And, if she is not evicted, it will not be possible for you to sell the property. So, you should start off the eviction but first of all, you need to send her a notice and give her a few days to find out if she leaves the house at all. Otherwise, she needs to be evicted.
Hope this helps..
Samantha
Hope this helps..
Samantha
elove,
You are going to need an attorney to help you understand if you can evict this person. While you have that attorney...ask them the following....
Do I have any legal liability in this transaction?
Too strong?
What you describe is called fraud for homeownership. Did you tell the lender that you were going to own the home as your primary residence? Did you commit to the lender that you will own the home and make the payments?
See, when you accept $20k to buy a home for someone else, and then turn around and convey ownership rights to them you are probably at present in violation of terms of your mortgage. There is a clause in most mortgages that states if you transfer ownership of the property without prior consent of the lender you are in effect "selling" the property. In doing so you cause the remaining balance of the loan to be due and payable.
So you very well may have defrauded your lender, then violated the terms or your mortgage, and now perhaps you can see the multiple needs for legal representation.
You are going to need an attorney to help you understand if you can evict this person. While you have that attorney...ask them the following....
Do I have any legal liability in this transaction?
Too strong?
What you describe is called fraud for homeownership. Did you tell the lender that you were going to own the home as your primary residence? Did you commit to the lender that you will own the home and make the payments?
See, when you accept $20k to buy a home for someone else, and then turn around and convey ownership rights to them you are probably at present in violation of terms of your mortgage. There is a clause in most mortgages that states if you transfer ownership of the property without prior consent of the lender you are in effect "selling" the property. In doing so you cause the remaining balance of the loan to be due and payable.
So you very well may have defrauded your lender, then violated the terms or your mortgage, and now perhaps you can see the multiple needs for legal representation.
Hello Ken,
I think you are talking about the due-on-sale clause. Yes, that could very well be applicable here because once a person gets a home loan and hands over the title to someone else, it may happen that the lender considers it as a violation of the terms. But if suppose, a borrower informs the lender at closing that he may be transferring the property to someone else, doesn't that ease the situation a bit. I mean, if the lender is well informed, he may not apply the the clause that you're speaking about.
I think you are talking about the due-on-sale clause. Yes, that could very well be applicable here because once a person gets a home loan and hands over the title to someone else, it may happen that the lender considers it as a violation of the terms. But if suppose, a borrower informs the lender at closing that he may be transferring the property to someone else, doesn't that ease the situation a bit. I mean, if the lender is well informed, he may not apply the the clause that you're speaking about.