Posted on: 25th Jan, 2008 12:06 pm
a friend and i purchased a house together in august 2007. i think i've bit off more than i can chew. i am in a financial crisis and want to do a quit claim deed but i'm not sure what to do about the mortgage. his fico score has dropped since the purchase and he is not able to refinance at the moment. is there a way to get out of this or is there another solution to this problem?
Sell it!
Otherwise you will need to get him to refinance. There is no point in signing a quit claim unless you are sure he can get the financing. I recommend keeping ownership until he closes on the new loan. Meaning you deed the property to him at his closing, not a moment sooner.
Otherwise you will need to get him to refinance. There is no point in signing a quit claim unless you are sure he can get the financing. I recommend keeping ownership until he closes on the new loan. Meaning you deed the property to him at his closing, not a moment sooner.
Ownership of a property and liability on the mortgage are separate. So, even if you transfer title to the co-owner, you are still liable on the mortgage. Livinginnky is right, if you can't refinance it, sell it.
hi richardt,
i agree with above posters that if you quitclaim your share of the property will only be transferred but you will still remain on the mortgage. so you should not refinance unless and until he take takes the mortgage only on his name.
if he cannot refinance just talk to the lender and see if novation or mortgage assumption is possible to take the mortgage only on his name.
you can even try out to sell the house as eric has pointed out.
feel free to ask if you have any further questions.
best of luck.
larry
i agree with above posters that if you quitclaim your share of the property will only be transferred but you will still remain on the mortgage. so you should not refinance unless and until he take takes the mortgage only on his name.
if he cannot refinance just talk to the lender and see if novation or mortgage assumption is possible to take the mortgage only on his name.
you can even try out to sell the house as eric has pointed out.
feel free to ask if you have any further questions.
best of luck.
larry
