Dear Quentin,

Four years ago I downsized and built a house while I still had a large mortgage on my first house. I couldn't secure the loan myself until the other house was sold.

I applied for the mortgage with my girlfriend. I had a down payment of $ 125,000 and paid the monthly mortgage along with property taxes. She pays the utilities.

Needless to say, things don't work and I want them to take off. She wants half the home value since her name is on the mortgage.

Is it entitled to half the value? Can I refinance myself without her knowing? I think I snookered myself. Please help.

Homeowner

You can email The Moneyist at qfottrell@marketwatch.com with any financial and ethical issues related to the coronavirus and follow Quentin Fottrell on Twitter.

Dear homeowner,

There are a few scenarios here. If your friend is on both the house deed and the mortgage – a situation preferred by most mortgage lenders – she's a co-owner of the house, whether she paid the monthly mortgage or contributed to a down payment. If she's only a co-signer of the mortgage but isn't on the house deed, she's essentially a surety.

"If your name is on the deed before your spouse signs the mortgage, the bank can usually only exclude your spouse's share of the house," said Cairns law firm in Erie, Pennsylvania. [if] Your name is on the house deed, then you are interested. The bank cannot do foreclosure because you did not transfer your interest to the bank. That means that you still own your share of the house. "

"
It looks like she took all the risk of paying back the loan, but none of the benefits of home ownership.
"

"Most mortgage lenders only give a spouse a mortgage if the deed is already in both names," the company added. "The mortgage lender will have no problem getting their money back if your spouse defaults on the loan. The lender will most likely want all of the owners to sign the mortgage, or they will not give the loan to any of the owners. "

You are not married, so there is no common ownership. It looks like she took all the risk of paying back the loan, but none of the benefits of home ownership. You can refinance your loan if your creditworthiness and income are sufficient and include all required tax documents and W-2, as well as appraisal, application and legal fees. Mortgage rates are still at record lows so you are likely getting a better rate.

In situations like this, it's always better to be direct, open, and not confrontational. It's unlikely you could do this without your friend's knowledge, especially since being a co-signer will affect her creditworthiness.

As long as it is on the mortgage and not the deed, it remains in a fragile financial position. It is in their best interest to get off the loan if that becomes possible.

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More from Quentin Fottrell:

source https://seapointrealtors.com/2021/07/31/my-girlfriend-cosigned-my-mortgage-i-paid-the-mortgage-for-4-years-plus-a-125000-down-payment-she-paid-the-utilities-now-she-wants-half/

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