Can I sell my home without the co-signer's approval?

Question

I purchased my home 5 years ago with the help of my step-father, he co-signed. I am now wanting to sell the house in order to relocate. He has never lived at the residence or made any payments. In the past year, the house has been remodeled (he made no financial contribution to the renovation.) Therefore, the appraisal has gone up quite a bit. I had an offer on the house yesterday and he doesn't agree with it, but it has been on the market for a year and i am ready to be through with it. Can I sell without his approval? Would he be entitled to any part of the profit?

Answer 1

Is his name on the title?  If it is, then you can't.

If his name is not, then you can.

It doesn't matter if he's lived in it or not. Who is on title is who owns the property.

He would be entitled to 50% of the equity/profit after loan payoff and expenses.

I would bet my last dollar that his name is on title along with yours.

Answer 2

A co-signer is only if you default on your obligation. The house is yours. If the sale of the house exeeds the value owed the money is yours and nobody elses. Just call your morgage Co. and let them know your intensions.

Answer 3

he is just vouching for you in making mortgage payments but he has no power and is entitled to nothing

  

Answer 4

As the other responses note, you can sell without his approval so long as his name isn't on the deed.

Having said that, you need to make sure his name is not on the deed. Sometimes lenders will require that a co-signer be on the deed; that happened to me the first time I bought a property.

The question is one of ownership. It has nothing to do with whether he's lived at the residence or made any payments. A deed (which deals with ownership) is entirely separate from a mortgage (which deals with repayment of a debt).

You also ask: Would he be entitled to any part of the profit? No, unless you and he had agreed in writing on a profit-sharing arrangement. Although he did provide something of value (his good name), any question regarding profit should have been specified at the inception of the agreement.

Now, if it turns out his name is on the deed, that's a whole other issue.

Hope that helps.

Answer 5

As a co-signer to the mortgage, your stepfather only guaranteed that you would make payments timely, and nothing else.  He has no ownership interest, and nothing to say about whether or not you sell, or at what price.

Answer 6

A co-signer only guarantees that you'll make the payments.

He has no ownership role, though he could sue your butt off if you cost him any money in the deal.

Answer 7

1.  Is his name on the Title/Deed?

2.  One option is to refinance in your name which immediatly removes him from any monetary obligations.  You could refinance for lower interest payment and since the home has appeciated you're in a stronger position in addition to your credit being stable or least meeting lender guidelines.  A.  credit card debt should be paid off or substantially below limit and clear of any judgments.  If judgements are satisfied note explanation of problem in Bureau.  In some cases, the attny general's office can request for it to be vacated from credit bureau.

3.  Another option is refinance mortgage in your name with cash out to pay off bills-taking only what's needed.

4.  When mortgage is in  your name, so is new promissory note.

The other issue is the Title Deed, etc.  which should (but doesn't always match with mortgage when changed).  You can always have a new Title with  your name justified by your name on the Mortage note.  You didn't indicated any written financial agreement between you and cosigner.  Co-signers are generally required to support weak credit or minimize risk.  Unless you have a written agreement with co-signer to share profit or transfer of ownership, etc. you can refinance the property without co-signer's permission.  In other words, take back your house and exercise your right of responsibility, which is supported by all of the work and maintenance you've performed!  

In short, you do not need his permission to Refinance.  Refinance first-getting it into your name and take care to remove his name from the Title (Transfer of Title).  You should have the Refinancing done first.  Your credit history of payments will support your claim to ownership.  

I co-signed my daughter's car loan and was listed as primary applicant.  She refinanced and loan listed as paid on my Credit File. The loan will list as paid on Co-signer's credit profile (an added boost).  He's enjoyed added status for past 5 years. Nor has he acted as an investor, etc.  You've footed the bills, etc.  Do not be manipulated.  Pull the plug and get in Titled in your name-but refinance it first to get in Mortgage Note in your name-removing him from any liability.

Answer 8

He would only have to sign if he is on the grant deed.  If he is not on the grant deed then you don't need his signature.