Posted on: 29th Jun, 2007 10:54 am
About a year ago I bought a property with my former boyfriend. At the time, he was granted a loan (I wasn't), but at the closing I was put on the mortgage and the title. He wants to quit claim the property to me, but I'm unable to to secure a loan. How does this work? If I do not agree to a quick claim, will I be financially responsible if he cannot repay the loan since my name is on the mortgage?
Hi Ami,
Welcome to Mortgagefit discussion board.
Your boyfriend is giving the property to you but it will have no affect on the mortgage that was taken jointly. You will have to get the mortgage refinanced in your name or pay it off.
And if you do not agree to take full ownership then nothing gets changed. As you are also named on the mortgage, financial responsibility for you do exists until the mortgage is paid off.
If a situation arises where he is not able to repay because of financial problems then you will have to continue the payments or else the loan will be in default and the lender can foreclose and get the house sold off to recover his balance amount. A foreclosure will bring down your as well as your former boyfriend's credit score also.
Do let me know if you have any other questions.
Thanks
Blue
Welcome to Mortgagefit discussion board.
Your boyfriend is giving the property to you but it will have no affect on the mortgage that was taken jointly. You will have to get the mortgage refinanced in your name or pay it off.
And if you do not agree to take full ownership then nothing gets changed. As you are also named on the mortgage, financial responsibility for you do exists until the mortgage is paid off.
If a situation arises where he is not able to repay because of financial problems then you will have to continue the payments or else the loan will be in default and the lender can foreclose and get the house sold off to recover his balance amount. A foreclosure will bring down your as well as your former boyfriend's credit score also.
Do let me know if you have any other questions.
Thanks
Blue
"will I be financially responsible if he cannot repay the loan since my name is on the mortgage?"
Yes as you are also part of the mortgage if he stops making the payments then you will have to continue or lender might foreclose and sell the house.
But why you will not agree to take the property using a quit claim deed?
Yes as you are also part of the mortgage if he stops making the payments then you will have to continue or lender might foreclose and sell the house.
But why you will not agree to take the property using a quit claim deed?
Ami, you are equally responsible being on the loan along with former boyfriend. If payments stop it will affect credit score of both of you. But what is the reason you are not able to secure the loan.