Posted on: 24th Oct, 2009 06:44 pm
Hello, I am a young lady who was looking to invest, therefore I took advantage of the opportunity of purchasing a home with two other young ladies. The loan is a 30 yr 4.75 fix rate for 400k+ , the home currently has tenants, therefore it has a income inorder to pay the monthly mortgage but there is no extra money to pay for other cost therefore we would have to come out of our pockets. Circumstances has changed since the purchase and i no longer have the means to assist in home owner cost therefore I no longer want this responsibility. This is all new to me therefore i want to know all my options as far as getting out of this, I no longer want to be a part owner and would like to know if there are effective ways of going about this that would not screw up my credit?
Foreclosure and DIL (deed in lieu) are two options for you at this moment..DIL is one of the best option so discuss this issue with your lender and then you will be able to get right solution from him.If you stop paying the mortgage, your lender will foreclose the property,so before that happens write a haddddship letter to him and ask him to consider your application about DIL.
keep in touch....
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keep in touch....
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other partners can refinance it in their name. discuss your problem with them
please don't pay attention to manoj's advice. it's not based on anything you noted in your original post, biddy.
unfortunately, you ought to have considered what you were getting into far more deeply in the first place. buying real estate isn't like buying a meal that 3 people can share. you need to sit down with your partners, discuss this situation and see what they can do about taking you out of the equation. as gregg noted, they can refinance (perhaps). but if the finances of the deal - overall - require your assistance, then lenders are not going to be jumping at the opportunity to refinance without you. if the rents pay the debt and their combined incomes/expenses aren't in a bad way, they may qualify to do this.
in your case, i don't think it behooves them to try to "buy you out" as much as it would be worthy to simply take you out. you don't want the financial responsibility - yes i recognize you said finances have changed - but presumably, there's not been a ton of equity built up either. you didn't say how long the 3 of you has owned this house, so i may be premature with my assessment of the equity situation.
you can simply walk away, but that won't take you out of your obligation to pay the mortgage debt. they'll have to obtain a new mortgage to do that.
unfortunately, you ought to have considered what you were getting into far more deeply in the first place. buying real estate isn't like buying a meal that 3 people can share. you need to sit down with your partners, discuss this situation and see what they can do about taking you out of the equation. as gregg noted, they can refinance (perhaps). but if the finances of the deal - overall - require your assistance, then lenders are not going to be jumping at the opportunity to refinance without you. if the rents pay the debt and their combined incomes/expenses aren't in a bad way, they may qualify to do this.
in your case, i don't think it behooves them to try to "buy you out" as much as it would be worthy to simply take you out. you don't want the financial responsibility - yes i recognize you said finances have changed - but presumably, there's not been a ton of equity built up either. you didn't say how long the 3 of you has owned this house, so i may be premature with my assessment of the equity situation.
you can simply walk away, but that won't take you out of your obligation to pay the mortgage debt. they'll have to obtain a new mortgage to do that.
