My friend has agreed to let me buy out their 1/2 interest in our house
we live in for X dollars. I will assume sole ownership of the deed and
mortgage. Currently our names are on both.

Question: Will my mortgage bank (well known national bank) most likely
allow me to keep the current terms, rates etc. of my mortgage even
though one person is dropping off the deed and the mortgage?..Or will I
need to re-qualify? We have a fixed rate loan and a heloc 2nd, with
about 15% equity. I'm hoping I do not need to re-qualify on my own. I'd
rather hear the bad news from you. Thanks,

wrote:
My friend has agreed to let me buy out their 1/2 interest in our house
we live in for X dollars. I will assume sole ownership of the deed and
mortgage. Currently our names are on both.

Question: Will my mortgage bank (well known national bank) most likely
allow me to keep the current terms, rates etc. of my mortgage even
though one person is dropping off the deed and the mortgage?..Or will I
need to re-qualify? We have a fixed rate loan and a heloc 2nd, with
about 15% equity. I'm hoping I do not need to re-qualify on my own. I'd
rather hear the bad news from you.

Sorry to be the bearer of bad news, but the only way to get the other
person off the mortgage is to refinance. You can't just remove his
name from the existing loan.

You will need to requalify based on your own personal information.

*I am not a loan professional, but I've been reading Bob Bruss' Real
Estate Mailbag for years, and somebody asks this question or a variant
every few months. The answer is always the same.
(http://www.washingtonpost.com/wp-dyn...071100610.html)

--
Jennifer

On 4 Jan 2007 20:00:27 -0800, wrote:


My friend has agreed to let me buy out their 1/2 interest in our house
we live in for X dollars. I will assume sole ownership of the deed and
mortgage. Currently our names are on both.

Question: Will my mortgage bank (well known national bank) most likely
allow me to keep the current terms, rates etc. of my mortgage even
though one person is dropping off the deed and the mortgage?..Or will I
need to re-qualify? We have a fixed rate loan and a heloc 2nd, with
about 15% equity. I'm hoping I do not need to re-qualify on my own. I'd




You should probably ask them, as well as check around with other
lending institutions to see what you can qualify for.

OK thanks for the info. Another scenario: Let's say they remove their
name from the title, but not the mortgage (good friend). Will the bank
make me re-qualify in that case?

If the friend agreed to keep the name on the mortgage (but not have to
make any payments), will that be a disadvantage for them if they go to
qualify for a new loan on their own? (assuming the existing loan stays
in perfect standing)

Is their a difference between a "co-signer" and what my friend
currently is on our mortgage? I am the first name listed on it. Not
sure if there is any distinction there, or if it is pertinent to the
above scenario?

Thanks,



Jennifer wrote:
wrote:
My friend has agreed to let me buy out their 1/2 interest in our house
we live in for X dollars. I will assume sole ownership of the deed and
mortgage. Currently our names are on both.

Question: Will my mortgage bank (well known national bank) most likely
allow me to keep the current terms, rates etc. of my mortgage even
though one person is dropping off the deed and the mortgage?..Or will I
need to re-qualify? We have a fixed rate loan and a heloc 2nd, with
about 15% equity. I'm hoping I do not need to re-qualify on my own. I'd
rather hear the bad news from you.

Sorry to be the bearer of bad news, but the only way to get the other
person off the mortgage is to refinance. You can't just remove his
name from the existing loan.

You will need to requalify based on your own personal information.

*I am not a loan professional, but I've been reading Bob Bruss' Real
Estate Mailbag for years, and somebody asks this question or a variant
every few months. The answer is always the same.
(http://www.washingtonpost.com/wp-dyn...071100610.html)

--
Jennifer

wrote in message
ps.com...
OK thanks for the info. Another scenario: Let's say they remove their
name from the title, but not the mortgage (good friend). Will the bank
make me re-qualify in that case?

You seem awfully afraid to re-qualify. What are you afraid of? If you can't
qualify, there are lots of other ways. You say the guys a good friend. Just
leave everything as it is a do a Contract to Deed with him. File it at the
court house and go on about your way. It's in his best interest that the
mortgage gets paid off and it is in your best interest that it does, so you
both have something to lose if the deal goes sour between the two of you. It
keeps you both honest and the courthouse filing makes sure that you get
clear deed when the mortgage is paid. This is about the only time that a
Contract to Deed is recommended.


--
Want to see your future? http://www.spp.gov/

I don't pay any attention to what politicians say.
IT'S WHAT THEY DO THAT MOVES ME TO VOTE!

JC

wrote:

If the friend agreed to keep the name on the mortgage (but not have to
make any payments), will that be a disadvantage for them if they go to
qualify for a new loan on their own? (assuming the existing loan stays
in perfect standing)


The debt will reduce the amount that your friend can borrow on a future
mortgage. Debt is debt - the bank won't care about your arrangement.

-rev

wrote:

OK thanks for the info. Another scenario: Let's say they remove their
name from the title, but not the mortgage (good friend). Will the bank
make me re-qualify in that case?


Only if you want to refinance. The other party removing their name from the
title in no way removes their obligation on the mortgage.

If the friend agreed to keep the name on the mortgage (but not have to
make any payments), will that be a disadvantage for them if they go to
qualify for a new loan on their own? (assuming the existing loan stays
in perfect standing)


Yep. Payment or not, they are still obligated and the debt will be counted
against them.

Is their a difference between a "co-signer" and what my friend
currently is on our mortgage? I am the first name listed on it. Not
sure if there is any distinction there, or if it is pertinent to the
above scenario?

There's no difference. You are both obligated for the loan regardless of who
actually makes the payments.