Posted on: 12th May, 2011 09:00 am
A short background:
My father and I purchased a condo in 2006 with myself as the primary resident and he as the secondary home holder.
I have moved out of the property, and will be leaving the state. The property took a loss of well over $100k, and it is an ARM. My father is hoping to turn it into a rental property. We are going to pursue a n ovation to remove me from the mortgage agreement. Given that he is already a co-borrower, has significantly higher income and great credit, I am optimistic that it will be approved.
What should I expect in terms of this process, ie, paperwork, procedures, and fees?
My father and I purchased a condo in 2006 with myself as the primary resident and he as the secondary home holder.
I have moved out of the property, and will be leaving the state. The property took a loss of well over $100k, and it is an ARM. My father is hoping to turn it into a rental property. We are going to pursue a n ovation to remove me from the mortgage agreement. Given that he is already a co-borrower, has significantly higher income and great credit, I am optimistic that it will be approved.
What should I expect in terms of this process, ie, paperwork, procedures, and fees?
hi ab0720,
welcome to mortgagefit,
as far as this situation is concerned, lender will surely ask to opt for refinance instead of novation..because they prefer it....as you have told that your father's credit is very good and good income history as well so you can check it out with the lender whether he qualifies for the refinance on his own or not?...
as far as novation's fees and documents are concerned it may differ from state to state and thus you are advised to contact local attorney....
feel free to ask any further query if you have.....
dipa
welcome to mortgagefit,
as far as this situation is concerned, lender will surely ask to opt for refinance instead of novation..because they prefer it....as you have told that your father's credit is very good and good income history as well so you can check it out with the lender whether he qualifies for the refinance on his own or not?...
as far as novation's fees and documents are concerned it may differ from state to state and thus you are advised to contact local attorney....
feel free to ask any further query if you have.....
dipa