Posted on: 01st Jun, 2009 08:42 pm
need help! here's my situation: i bought a house in march of 06 with my best friend. only thing is my friend's credit was low and i had just got out of college so i signed my name on the loan with my father co signing. so the house was purchased for 215k and now it's valued in the 125k range. my bank (chase) doesn't wantto cooperate in letting me refinance and i can't qualify for the hope for homeowners programs given my dad's salary. is there a way i can get him off ofthe mortgage so that i may qualify for these plans? (i also am current on all payments and have never been late) i'd even consider a short sale and hurting my credit but would like to not hurt my dad's credit. any advice to help me would be greatly apprecitated.
Hi joedirt,
The lender will not be ready to refinance the property as it does not have any equity. Your mortgage is more than your property value. As you cannot refinance now, it won't be possible for you to remove your father from the property or mortgage.
Though your father's credit will be hurt, I would suggest you to go for a short sale if you are facing hardship in paying the mortgage dues.
The lender will not be ready to refinance the property as it does not have any equity. Your mortgage is more than your property value. As you cannot refinance now, it won't be possible for you to remove your father from the property or mortgage.
Though your father's credit will be hurt, I would suggest you to go for a short sale if you are facing hardship in paying the mortgage dues.
is there any way to get my father off of the mortgage without refinancing? how do married couples do it? also if we do a shortsale do both of our credits get dinged the same? if a short sale hurts your credit by 200 points or so does that get split (100 points each) or do both credits get dinged the full amount?
hi joseph,
you can apply for a novation. this is also one of the ways to remove your father from the mortgage and transfer it in your name. however, it would be the lender's discretion whether he would accept your request or not. married couples can either go for refinance or novation. if both the names are on the mortgage, then both of you will have to take a hit on your credit score and will reduce it by 75-100 points.
you can apply for a novation. this is also one of the ways to remove your father from the mortgage and transfer it in your name. however, it would be the lender's discretion whether he would accept your request or not. married couples can either go for refinance or novation. if both the names are on the mortgage, then both of you will have to take a hit on your credit score and will reduce it by 75-100 points.