Posted on: 24th Dec, 2007 07:02 pm
Hello, my name is Peter, and about a year and a half ago, I purchased a condo with my best friend, basically as an alternative to renting. However, my girlfriend and I are purchasing a house, and I need off the mortgage. He wants to keep the place. I was wondering what is the best way to go about this, and what I can expect in terms of costs to me, or monies I should receive for the equity in the home?? I live in the state of Connecticut, I'm not sure if there are specific regulations or anything in the state. Thanks so much!!!
hello peter,
lenders usually don't agree to remove the co-borrower's name from the mortgage. but depending upon the situation, you may request the lender to remove your name.
you may also request your friend to refinance the loan in his name only and removing your name as the co-borrower while doing the refinance.
if you are signing off whatever interest you have in the property, you may ask your friend to buy you out. you may prepare a settlement agreement for the money you should receive for your share of equity.
feel free to ask if you have any further queries.
lenders usually don't agree to remove the co-borrower's name from the mortgage. but depending upon the situation, you may request the lender to remove your name.
you may also request your friend to refinance the loan in his name only and removing your name as the co-borrower while doing the refinance.
if you are signing off whatever interest you have in the property, you may ask your friend to buy you out. you may prepare a settlement agreement for the money you should receive for your share of equity.
feel free to ask if you have any further queries.
jenkin is right. you have to convince the lender to remove your name from the mortgage note.
you may sign a quit claim deed to transfer your portion of interest to your friend but if you need money for your share of equity, your friend has to buy you out.
you should talk to the lender first stating the situation.
you may sign a quit claim deed to transfer your portion of interest to your friend but if you need money for your share of equity, your friend has to buy you out.
you should talk to the lender first stating the situation.
It's not all that unusual to get a release of mortgagor BUT remaining borrower must be well qualified. If there is MI involved, the MI has to come into the mix. Downside is the housing market is not the greatest right now. Condos can be a drag (perhaps not in CT) and I wouldn't be put off if a new appraisal is required. Much easier if you dealing with the same lender to whom you originally applied versus a mortgage that's gone continually through the 'resell' mill. You might hold out the carrot of doing the new purchase through the same company.
Hi Peter,
Welcome to the forum and Merry Christmas :)
Jenkin has given sound suggestion here. You can request your best friend to refinance the loan on his name and you just quitclaim the property to him.
You can ask him to pay you your share of equity also as you are quitclaiming the property to him.
Contact an attorney to make the deed for you.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum and Merry Christmas :)
Jenkin has given sound suggestion here. You can request your best friend to refinance the loan on his name and you just quitclaim the property to him.
You can ask him to pay you your share of equity also as you are quitclaiming the property to him.
Contact an attorney to make the deed for you.
Feel free to ask if you have any further questions.
Best of luck,
Larry
as a lender in connecticut, let me chime in here...
having your name removed from a mortgage is impossible. once you sign a note, it stays signed, and you cannot be absolved of responsibility unless and until the loan is paid in full; or in a court of law. until then, the lender can continue to seek payment from you directly.
your best bet, it would seem, is as noted above. if your friend can refinance the existing mortgage and eliminate you from responsibility, you can then move on. you didnt discuss the amount of equity in the condo. also as noted above, you can arrange for a buyout that would take place within the confines of that proposed refinance.
having your name removed from a mortgage is impossible. once you sign a note, it stays signed, and you cannot be absolved of responsibility unless and until the loan is paid in full; or in a court of law. until then, the lender can continue to seek payment from you directly.
your best bet, it would seem, is as noted above. if your friend can refinance the existing mortgage and eliminate you from responsibility, you can then move on. you didnt discuss the amount of equity in the condo. also as noted above, you can arrange for a buyout that would take place within the confines of that proposed refinance.
The only way to remove you from the mortgage is for him to refinance in just his name. I work with this situation quite often. Have him give me a call or email me for a mortgage quote.
This is possible, I just had my ex-financee removed from my loan which is co-signed on in December 2007. The process is called Loan Assumption and your lender can send you the paperwork to begin the process. It takes about 30-45 days to complete the transaction.
This is possible, I just had my ex-financee removed from my loan which is co-signed on in December 2007. The process is called Loan Assumption and your lender can send you the paperwork to begin the process. It takes about 30-45 days to complete the transaction.
Hello Guest,
Was this a FHA loan? That is the only "assumable" loan that I know...
Was this a FHA loan? That is the only "assumable" loan that I know...
