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I am considering getting a home with girlfriend, with the mortgage in
my name (because she cannot qualify - no credit) , but both names on
deed. We are planning on splitting everything 50%.
My question is - what if I choose to sell the house at some point for
releif from the mortgage, but she does not agree? What are the
liabilities in such a case?
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In article <l6upa1dk647brobvgf90sev2let82jp6tc@4ax.com>,
"beller" <bartpio@gmail.com> wrote:
I am considering getting a home with girlfriend, with the mortgage in
my name (because she cannot qualify - no credit) , but both names on
deed. We are planning on splitting everything 50%.
My question is - what if I choose to sell the house at some point for
releif from the mortgage, but she does not agree? What are the
liabilities in such a case?
That is perhaps one of the worst financial moves you can make.
In the eyes of the law, you are not related, so it is like
buying a house with a stranger. If she stops making her
share of the payments, you have to pay it all to avoid having
the loan go into default. And when you have struggle to pay
it all off by yourself, she still owns 1/2.
If you are serious enough to buy a house, get married, and
solve all of the problems that exist for non-married couples.
-john-
--
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John A. Weeks III 952-432-2708 john@johnweeks.com
Newave Communications http://www.johnweeks.com
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Beller,
You wish to buy a home in partnership with someone who has no credit
history. You believe that this lack of a credit history will prevent the
mortgage from being approved so you plan to assume the entire mortgage. You
hope that your partner will contribute to the payment of the mortgage and
your partner will be an owner on the deed. You ask if you can later sell the
home without your partner's approval.
You don't say where you live and local laws are often important but this
sort of action is usually called a motion for partition. If the motion is
successful then the court will create an order allowing you to try to sell
and specifying how the money shall be divided. Of course if the sale is less
than the money owed then you are still liable
But let's stop now and look back. You believe that your partner's lack of
a credit history will affect approval of the mortgage. Have you spoken to a
mortgage broker or your banker about this? I think you are wrong. I'd also
be surprised if your partner did not have some credit history, student
loans, cash advance card, et c.. Be sure to ask the broker whether his
company will lend you money on a house that you do not own but hold in
partnership. I think he'll say no.
Good luck,
Dave M.
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I am considering getting a home with girlfriend, with the mortgage in
my name (because she cannot qualify - no credit) , but both names on
deed. We are planning on splitting everything 50%.
My question is - what if I choose to sell the house at some point for
releif from the mortgage, but she does not agree? What are the
liabilities in such a case?
Nowadays the probability of a marriage ending in divorce is something around
..50, and I suspect the probability of unmarried people who live together
eventually splitting up is even higher. So you are taking a big financial
gamble. Would you put your money in a bank account where there is a 50-50
chance you may have to fight to get it back? Would you buy a stock if the
chances of financial gain are stacked against you in the beginning? Think
along these same lines about the real estate you are buying.
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beller wrote:
I am considering getting a home with girlfriend, with the mortgage in
my name (because she cannot qualify - no credit) , but both names on
deed. We are planning on splitting everything 50%.
My question is - what if I choose to sell the house at some point for
releif from the mortgage, but she does not agree? What are the
liabilities in such a case?
Have you talked to the lender about this? I can't imagine them signing
onto a mortgage in a deal that signs away half the property.
And if you're thinking about both of you signing on to the mortgage,
Yow! Pay a real estate attorney to tell you horror stories. If he scares
hell out of you, it's money well spent.
If it were me, I'd take on the whole mortgage and hold the deed and
carry the payments myself. When you propose this, you may learn
something interesting. One way or another, it's likely to be a learning
experience.
--
Gerald Clough
"Nothing has any value, unless you know you can give it up."
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