Posted on: 29th Mar, 2010 05:38 am
my girl friend and i bought a house a few years ago and then about a year ago split up. the house due to the housing slump is worth less then the mortgage. i moved out and she stayed. she with the help of roommates can make the mortgage payment. it is about $2,800. here is the problem. she can not qualify for a refinance of the mortgage on her own and i can not qualify for a mortgage to buy myself another house because my name is on the other mortgage. i really want to get my name cleared of that mortgage. any ideas?
that is a very difficult position you're in. it doesn't matter that you're two single folk who purchased, either; married people who split up have similar concerns after the fact.
once a borrower, you're always a borrower on a debt until such time as that debt is paid in full. that could mean the sale of the home, or a refinance. of course, refinancing is most difficult with values having dropped, in addition to your joint ownership of the home.
it may well be that the best solution is for the home to be sold, the debt settled as best as can be done (short sale, perhaps), and the two of you move on in your separate lives, with the possibility that each of you could make a purchase again after resolving this issue.
once a borrower, you're always a borrower on a debt until such time as that debt is paid in full. that could mean the sale of the home, or a refinance. of course, refinancing is most difficult with values having dropped, in addition to your joint ownership of the home.
it may well be that the best solution is for the home to be sold, the debt settled as best as can be done (short sale, perhaps), and the two of you move on in your separate lives, with the possibility that each of you could make a purchase again after resolving this issue.