Mortgage advice please?

Question

i bought a house almost two years ago with 3 friends- after 4 months one of them up and left and we agreed to buy her out. there was no arguments and we all came to an agreement but or mortgage are still messing about processing the request. its driving me insane they keep saying they have everything they need but then demanding more. this has gone on for over a year. our two year fixed term contract expires in october can we(the 3 remaining owners) just get a new mortgage provider without her name on? then get her removed from the deeds- therefore not having to deal the rubbish mortgage provider we have now?

Answer 1

Yeh if I were you I would just give up on you current mortgage company and re-mortgage with a new lender.

when you re-mortgage they will pay off your existing mortgage and then you take out a new one in just your 3 names.

Answer 2

See if a new bank will allow your friend to sign a "quit deed" and allow a refinance for the remaining owners.

Answer 3

She will need to sign a quit-claim deed ASAP. if you don't make her do this there are companies that will loan her money using her portion of the investment as collateral. This means you could all lose your home.

Also, she needs to sign a quitclaim deed because even if you refinance the house all you are doing is paying off the old loan, not buying her out. Her name will still be on the deed, the only difference is that her name won't be on the new loan contract BAD BAD BAD. So if the new loan defaults she won't be sued for the money (She'll just lose the house like the rest of you but won't owe any taxes/money lost on a short sale etc), but if she takes a loan out on the house YOU CAN.

Once the quitclaim deed has been signed the three of you will end up having to pay income tax on the value of her portion of the house because she can not GIFT you over $10,000 in money or property, which is essentially what she will be doing if the house has gone up in value at all since she signed the loan and you don't pay her for the difference.

You need a real estate attorney.

Answer 4

I am assuming since she is still on the deed that you had NO LEGAL input when you did this transaction or you would have known not to pay he/him until he/she signed a quit claim on the property.  

You can go to another Mortgage Lender and then she will still have to be involved in signing over the deed at that time.  Hope you are all still friendly and she is in your area.

Good luck

Answer 5

Yes you certainly can.  All you need to do, when you remortgage with a new mortgage company is do the transfer removing the friend at that time.

Its quite an easy process

Answer 6

Absolutely.  You can remortgage with a new lender, and therefore change the terms of your original mortgage to best suit your current situation.  For more advice on appropriate lenders and current mortgage rates, see:

http://www.simplyfinance.co.uk/articles/...