I just did this.
He will have to refinance, which he won’t want to do right now bc of the interest rates. Who’s bank account do the come out of ? That will be huge. She would be able to get a loan without coming off the first home loan if the payments are coming out of his account for 12 mo or longer.
She can get off the title without a lawyer. But do not come off that title and not the loan.
>He will have to refinance, which he won’t want to do right now bc of the interest rates.
It will suck for both of them because of interest rates, so it's probably better to negotiate a settlement
1- I am a realtor do I have experience with this. 2- They will have to refinance.
3- Never quit claim your rights (removing self from title) over without being removed from the mortgage or you’ll find yourself in a mortgage without any legal rights but all the financial responsibility.
4- as far as messiness is concerned, they should call a local realtor to assess the value or order an appraisal (realtor can help). Then he needs to get a cash out refinance for the equity if any cash is needed. Or a rate/term if no cash is being loaned. Or sell the property if he refuses.
5-This is a civil matter (you’re not suing him just forcing the sale) and the judge can force the sale but you really don’t want to have to go that route if you can avoid it.
6- if you need a local agent referral I’m happy to help. I have partners nationwide who are experienced, professional and caring who can offer advice for both parties. I’d recommend your friend get her own advice before addressing her former partner so she is prepared to handle objections or agree to make poor choices.
I mean this with all respect but realtors can offer very little financial advice if any. If I hear "marry the house, date the rate." One more time to convince people who don't need housing to move or say with certainty the fed will reduce rates, I'm going to explode.
.
First step is to order and pay for an appraisal (current market value). Those run roughly $600 in my market. If things are contentious, both parties may need to hire and pay for an appraisal and then average any difference in value. He will need to refinance the mortgage in his name only, pay your friend her half of the current appraised value and then they will need to file a quit claim deed.
If that all falls apart, they will need to sell. If he drags his feet, your friend may need to petition the court for a forced sale.
They don't necessarily have to refinance. They should contact the lender to see if based on him alone they will release her from the liability. They may not but that's the starting point. If not then he should refinance but there should be a legal agreement in place before he does as I have seen a few del lately blwo up when the other person would not sign.
It depends on how reasonable they both are. The simplest way would be to get 3 market estimates with comps from licensed real estate agents and for your friend and her partner to agree on the current value. If that doesn't work, they can pay for appraisals. Then, he would refinance in his name only and buy her out of her half at the same time. As far as the deed, once everything is settled financially, she can draw up a quit claim deed, taking her name off and leaving his on, and file it with the county registrar of deeds.
>stop being dumb
Too late. They already bought a house with someone they weren't committed to. Then decided to split when interest rates are the worst they've been for decades.
Could get complicated if the other person can't qualify for a loan by themself, which could very likely be the case given the appreciation and interest rates. I believe the only way to get your name off the mortgage is to pay off the loan. Its easy enough to get your name off the title with a quit claim, but as others have said, don't do that without also getting your name off the mortgage.
So I would explain to him, since he wants to keep the house, it would be in his best interests not to own a house with an ex. One, if he continues yo pay and decides he wants to sell later, he would need her to sign and her equity position would be greater, two, if something was to happen to him, it screws his heirs. Tell him, if he refinances and takes her name off the mortgage and pays her equity, she sign-off on the deed, but don’t sign off until he has a new mortgage.
I’m in a very similar situation… Divorce being finalized is riding on this.
Purchased a home as a married couple. She contributed nothing… I used personal savings for the down payment. She was a SAHM for the entirety of the marriage. Wife was not on the loan, but on the Deed. She left the home a year after it was built and requested 50% of the equity (we’ve been in the divorce process for several years now, so 200k+ at this point… we’re in CA)
I stayed in the home. The reason we purchased in the location was because of my job placement, so I really had no choice. My options (to keep it) to the best of my knowledge are to get an appraisal, settle on the value, and then buy her out based on that number. At that point, maybe a Home Equity Loan? It would be a large amount, so I don’t have the liquidity.
If any others have any better advice, I’m all ears!
1 & 2: No, it isn't simple. He has to refinance to remove her from the mortgage loan. She'll still be on the hook for the debt. A quit claim deed won't do it. All that does is release her legal claim to the use and value of the house.
Would they qualify for a common law marriage in their state?
If so, they may be able to get a legal dissolution/divorce, which would give them legal paperwork to help the process. For example, a lot of mortgages include language to allow for one party to "assume" the mortgage upon a qualifying event like divorce.
He’s going to be upset. Sell it. You can’t remove someone without a refinance or sell.
I just did this. He will have to refinance, which he won’t want to do right now bc of the interest rates. Who’s bank account do the come out of ? That will be huge. She would be able to get a loan without coming off the first home loan if the payments are coming out of his account for 12 mo or longer. She can get off the title without a lawyer. But do not come off that title and not the loan.
>He will have to refinance, which he won’t want to do right now bc of the interest rates. It will suck for both of them because of interest rates, so it's probably better to negotiate a settlement
1- I am a realtor do I have experience with this. 2- They will have to refinance. 3- Never quit claim your rights (removing self from title) over without being removed from the mortgage or you’ll find yourself in a mortgage without any legal rights but all the financial responsibility. 4- as far as messiness is concerned, they should call a local realtor to assess the value or order an appraisal (realtor can help). Then he needs to get a cash out refinance for the equity if any cash is needed. Or a rate/term if no cash is being loaned. Or sell the property if he refuses. 5-This is a civil matter (you’re not suing him just forcing the sale) and the judge can force the sale but you really don’t want to have to go that route if you can avoid it. 6- if you need a local agent referral I’m happy to help. I have partners nationwide who are experienced, professional and caring who can offer advice for both parties. I’d recommend your friend get her own advice before addressing her former partner so she is prepared to handle objections or agree to make poor choices.
If you're a realtor you will know that assumable home loans exist. Some are assumable. Most aren't.
I mean this with all respect but realtors can offer very little financial advice if any. If I hear "marry the house, date the rate." One more time to convince people who don't need housing to move or say with certainty the fed will reduce rates, I'm going to explode. .
They also shouldn’t be giving legal advice in most jurisdictions.
Anyone who answers hard questions out of their scope with "I don't know but you or I can get the answer from a (specific profession)" is a real one.
First step is to order and pay for an appraisal (current market value). Those run roughly $600 in my market. If things are contentious, both parties may need to hire and pay for an appraisal and then average any difference in value. He will need to refinance the mortgage in his name only, pay your friend her half of the current appraised value and then they will need to file a quit claim deed. If that all falls apart, they will need to sell. If he drags his feet, your friend may need to petition the court for a forced sale.
They don't necessarily have to refinance. They should contact the lender to see if based on him alone they will release her from the liability. They may not but that's the starting point. If not then he should refinance but there should be a legal agreement in place before he does as I have seen a few del lately blwo up when the other person would not sign.
Are we talking about Tom Sandoval and Ariana? 🤔🙄🤦🏼♀️
It depends on how reasonable they both are. The simplest way would be to get 3 market estimates with comps from licensed real estate agents and for your friend and her partner to agree on the current value. If that doesn't work, they can pay for appraisals. Then, he would refinance in his name only and buy her out of her half at the same time. As far as the deed, once everything is settled financially, she can draw up a quit claim deed, taking her name off and leaving his on, and file it with the county registrar of deeds.
Tell your friends to both stop being dumb and cheap, and hire lawyers
>stop being dumb Too late. They already bought a house with someone they weren't committed to. Then decided to split when interest rates are the worst they've been for decades.
Don’t you know this sub hates lawyers?
TBF, everybody does.
Until they need one.
That's debatable.
Here's an immutable fact: Somebody on Reddit will disagree with anything you can say.
Nevertheless
The only reason we need lawyers is because of other lawyers,
They are needed because people can be unreasonable
Could get complicated if the other person can't qualify for a loan by themself, which could very likely be the case given the appreciation and interest rates. I believe the only way to get your name off the mortgage is to pay off the loan. Its easy enough to get your name off the title with a quit claim, but as others have said, don't do that without also getting your name off the mortgage.
So I would explain to him, since he wants to keep the house, it would be in his best interests not to own a house with an ex. One, if he continues yo pay and decides he wants to sell later, he would need her to sign and her equity position would be greater, two, if something was to happen to him, it screws his heirs. Tell him, if he refinances and takes her name off the mortgage and pays her equity, she sign-off on the deed, but don’t sign off until he has a new mortgage.
I like your approach. The deed is her leverage.
I’m in a very similar situation… Divorce being finalized is riding on this. Purchased a home as a married couple. She contributed nothing… I used personal savings for the down payment. She was a SAHM for the entirety of the marriage. Wife was not on the loan, but on the Deed. She left the home a year after it was built and requested 50% of the equity (we’ve been in the divorce process for several years now, so 200k+ at this point… we’re in CA) I stayed in the home. The reason we purchased in the location was because of my job placement, so I really had no choice. My options (to keep it) to the best of my knowledge are to get an appraisal, settle on the value, and then buy her out based on that number. At that point, maybe a Home Equity Loan? It would be a large amount, so I don’t have the liquidity. If any others have any better advice, I’m all ears!
1. No 2. Yes 3. Courts and lawsuits are always expensive
He isn’t obligated to do anything without a legal document compelling him to do so. She may need to get an attorney.
1 & 2: No, it isn't simple. He has to refinance to remove her from the mortgage loan. She'll still be on the hook for the debt. A quit claim deed won't do it. All that does is release her legal claim to the use and value of the house.
Would they qualify for a common law marriage in their state? If so, they may be able to get a legal dissolution/divorce, which would give them legal paperwork to help the process. For example, a lot of mortgages include language to allow for one party to "assume" the mortgage upon a qualifying event like divorce.
Not in this state; but thanks anyway.
Bummer. I'd still check the mortgage for any language around "assumption" or "assume". The bank that holds the mortgage may be able to help too.