When there is 1 person on the mortgage but 2 on the deed...?

Question

If they were to part ways, who gets to legally keep the house, is it automatically the one on the mortgage, or is there some crazy process invloved?

What responsibility (if any) does the person not on the mortgage hold? Are they just as responsible for say (just an example, lol), keeping the yard from becoming a public eye soar as the name on mortgage?

And, if you are the party on the deed not on mortgage, what are you listed as as far as residency goes in various paperwork? ie, questions like "are you a renter, home owner, boarder etc.."

Feel free to mention anything else I might find of interest or should know regarding 2 people on a deed with 1 on mortgage... thanks!

Sorry if those are silly Q's. But I 'm trying to grasp all this deed/mortgage stuff before I buy, lol, it's confusing!

Answer 1

The person on the mortgae is 100% responsible for the mortgage.  The 2nd person is NOT.

However, you only own 50% of the property.  The other person owns 50%.  

This is why you NEVER!!!!!!!!!! put a person on the deed unless they also own.  The 2nd person has no responsiblity for the mortgage if it comes to that.  However, if they live there also, they should pay for half . . . and ususally the courts would rule like this.  But if they move out, then usually not . . . .

Answer 2

Lots of lenders REQUIRE both people in title (on the deed) to be on the mortgage.

IF you are in title, you are an owner, you have ALL the obligations of an owner--to pay real estate taxes, to keep property up, etc.

IF you are in title, you have a right to occupy the premises, as does any other owner

IF you are on the mortgage, you are a debtor, and have an obligation to pay the bank back what you borrowed in order to become an owner

There are several ways to hold title, such as joint tenancy and tenancy in common

Answer 3

Any agreements or contracts for real estate have to be in writing.  So both own 50% unless the deed says otherwise or you can prove it in court.  The hardest part is getting the other party to give you your share or sell.  I hear that a partition suit is a long and expensive process.

Answer 4

without answering all of your questions, first let me say that a lender/bank will require that all persons listed on the deed will also be listed on the mortgage; however, they can choose to list only one of you on the Note.

Anyone listed on the deed has full rights of ownership, irregardless of whether they are liable for the mortgage payment.

Answer 5

Ah....you have to decide that among yourselves, because if you go to court, they will most likely order the home sold and the proceeds split after expense deductions.

The mortgage holder has NOTHING to do with the ownership...the ownership is 100% determined by the names on the title...so if there are two names on title, then each own 50%...you don't get "more" ownership interest just b/c the loan is in your name.

If you are on the deed, you are an OWNER.

This is why two people, that are not married, should not buy property together.