What is the name of your state? California
I purchased a house with someone (joint tenancy WROS) almost 6 years ago and things didn't work out. I bought out their interest in the house over a year ago via quitclaim. The title is in my name alone. However, because interest rates were considerably higher than my 2003 rate, I never refinanced and the other person is still on the loan (1st mortgage). I have made every mortgage and prop tax payment since initial purchase 6 yrs ago.
Now, he wants to buy his own home and while his credit score is nearly excellent, he was advised that he will not get the best interest rate as long as his name is still on my mortgage loan since the amount owed is around 190k.
As an aside, I paid him an enormous amount of money to buy him out. It was much higher than his investment in the house, but I knew that he would force a partition suit and I would most likely lose my home. So, I just bit the bullet and chalked it up to a very expensive learning experience.
I inquired last year about having his name removed from the loan without refinancing and the lender said that it is possible but the fees are pretty steep. I informed him of this when he called the other day. He suggested that we split the fee to have this done to make things more cost effective for him.
I realize that I'm under no obligation to do so, and I have nothing to gain by throwing more good money after bad as I have done in the past with him.
However, I have no objection to having his name removed from the loan providing that he is willing to bite the bullet and pay the fees to have this done. I will agree to sign the bank docs providing it's done in a fashion that doesn't cause me to incur further expenses. In other words, it will be have to done through the bank or an escrow company. I can no longer afford to take any chances with this person.
I expect that he will be angry if I don't agree to contribute financially to this.
My questions are:
1. Can he re-fi and take cash out without the bank notifying me or having me sign new loan docs? Please keep in mind that every payment has and will come directly from my checking account which is in my name alone.
2. If he chooses *not* to pay the fee to remove his name from the loan and I decide to refinance later on should interest rates go down, will I need him to sign any docs?
Thanks in advance,
Bonnie
I purchased a house with someone (joint tenancy WROS) almost 6 years ago and things didn't work out. I bought out their interest in the house over a year ago via quitclaim. The title is in my name alone. However, because interest rates were considerably higher than my 2003 rate, I never refinanced and the other person is still on the loan (1st mortgage). I have made every mortgage and prop tax payment since initial purchase 6 yrs ago.
Now, he wants to buy his own home and while his credit score is nearly excellent, he was advised that he will not get the best interest rate as long as his name is still on my mortgage loan since the amount owed is around 190k.
As an aside, I paid him an enormous amount of money to buy him out. It was much higher than his investment in the house, but I knew that he would force a partition suit and I would most likely lose my home. So, I just bit the bullet and chalked it up to a very expensive learning experience.
I inquired last year about having his name removed from the loan without refinancing and the lender said that it is possible but the fees are pretty steep. I informed him of this when he called the other day. He suggested that we split the fee to have this done to make things more cost effective for him.
I realize that I'm under no obligation to do so, and I have nothing to gain by throwing more good money after bad as I have done in the past with him.
However, I have no objection to having his name removed from the loan providing that he is willing to bite the bullet and pay the fees to have this done. I will agree to sign the bank docs providing it's done in a fashion that doesn't cause me to incur further expenses. In other words, it will be have to done through the bank or an escrow company. I can no longer afford to take any chances with this person.
I expect that he will be angry if I don't agree to contribute financially to this.
My questions are:
1. Can he re-fi and take cash out without the bank notifying me or having me sign new loan docs? Please keep in mind that every payment has and will come directly from my checking account which is in my name alone.
2. If he chooses *not* to pay the fee to remove his name from the loan and I decide to refinance later on should interest rates go down, will I need him to sign any docs?
Thanks in advance,
Bonnie
