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Removing Co-Owner

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steveh2142

Junior Member
What is the name of your state (only U.S. law)? PA

My girlfriend (at the time) and I purhcased a house in January of 2009. We lived together there and split the mortgage 50/50 until she chose to leave me in October. She continued to pay her half of the mortgage, becuase she had an obligation to do so, while we attemtped to work our relationship out. It's now March of 2010 and we are deciding to move forward with out each other. She doesn't want the house, I would like to stay in it. Is it possibe to have her name removed from the mortgage/title etc? Or can I buy her out for practically nothing ($1)?

At the time of purchase neither of us made any investment, downpayment, into the purchase. We used a FHA loan. My family gifted us the cost of closing fees (roughly 6 grand). With only owning the house for just over a year we haven't been able to build any equity into it. Neither of us would stand to make any money off selling the house, we actually would end paying out in realtor fees.

Any thoughts?
 


tranquility

Senior Member
She can gift her portion to you, but that does not get her off the mortgage. The practical reality is you will have to refinance.
 

nextwife

Senior Member
I have been curious been this, because I work in the default department of a bank and deal with the fallout of these unmarried break ups all the time:

WHY would a couple that does not like or care enough about each other to commit to a marriage, instead commit to a thirty year mortgage together?


(And then often run to the bank a year or so AFTER BUYING, crying how they can't afford it any more now that only one of them is there, demanding a modification to make it more affordable for them)
 

steveh2142

Junior Member
Well thank you for that "next wife". Wasn't interested in your opinion of the break up. I'm not talking about defaulting on the payments. I'm fully capable of affording the house on my own. I just don't find any reason that I should have to buy her out, as she made no initial investment, and no profit stands to be made.

So again, my question was, can this be done?
 

tranquility

Senior Member
The reason you buy her out is the way a co-owner can make another co-owner miserable. What if she decides to rent out part of the house? She has that right as co-owner. Or, she just waits until you pay the mortgage for years and then decides she wants 1/2 of the built up equity--which you gifted her over time.

Maybe you can convince her to gift her portion over to you. She can do that and will suffer no tax consequences as it appears there is little equity. But the bank is not going to release her from her obligations unless you refinance in your own name. Escrow can handle the simultaneous requirement of her quit claiming the deed to you and you refinancing. That way both are protected from shenanigans.
 

nextwife

Senior Member
We did not state you needed to buy her out, only refi her off the loan. However, if she is half owner already, she has half interest, regardless of what you feel is fair.
 

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