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alwayzkurious · Feb 22, 2007, 05:05 PM

California - Bought a home with a friend and due to unforseen circumstances I will not be able to live in the house we purchased. So we have talked about a refinance in his name only but keeping me on the title. Since I will not be living there there is no reason to continue with paying my part of the motgage.
So my question is would it be smarter for him to buy me out or just keep me on the title?

Cvillecpm · Feb 22, 2007, 07:06 PM

He should refinance and buy you out and get your name off the title and mortgage... as long as you are on the mortgage, you need to pay your share no matter WHERE you live... the mortgage is not contingent upon your living at the property.

alwayzkurious · Feb 22, 2007, 07:25 PM

Originally Posted by Cvillecpm

He should refinance and buy you out and get your name off the title and mortgage....as long as you are on the mortgage, you need to pay your share no matter WHERE you live.....the mortgage is not contingent upon your living at the property.

Yes, as long as I am on the mortgage I will continue to pay my share, He will be refinancing in his name only, and at that time is when I will be moving out... He is hesitant to buy me out because he will have to pay more than what he is currently paying once I move out -
So what I am trying to unserstand is for the best case scenario for both of us would be for him to buy me out -
If he doesn't buy me then once we sell the house we would split the profit* (xrossed fingers)
Since I would still be on the title -
I am thinking wrong?

Nosnosna · Feb 22, 2007, 07:36 PM

If you're moving out, it's smarter for him to keep you on the title... that way, you remain responsible for paying part of the mortgage even though he's getting the entire benefit.

It's smarter for you (and the equitable solution) to refinance and get it completely in his name. Since you're the one causing this, the fair solution is for you to pay any extra up-front fees incurred in the refinance. You don't have to volunteer that course of action, of course, but it would be fair ;)

alwayzkurious · Feb 22, 2007, 07:39 PM

How would I remain responsible for mortgage if he refinances in his name? -- Prior to us going in on a house together we both had the understanding that when I regain full custody of my children that I would have to move out -

Nosnosna · Feb 22, 2007, 07:48 PM

Ah, my mistake... I misread. I thought the choice was between refinancing and going off the title, or not refinancing and staying on.

Since the refinance is definite, the situation is much different:

Keeping you on the title is not the smart choice on his part, since he's basically giving you an equal share of something he's paying for in its entirety. It works out well for you, though.

Fr_Chuck · Feb 22, 2007, 07:52 PM

If he refinance, in his name only, then the deed should be in his name only also.

If you remain owner on the deed, then you are responsible for 1/2 of the payment,

And of course he will be paying more, he will be paying the full cost of the loan hisself.

He does not have to buy you out, he can hold your responsible for paying 1/2 since you are on the mortgage,

alwayzkurious · Feb 22, 2007, 07:54 PM

Sorry for being a little shallow here but I will not be on the motgage once he refinances... am I still responsible for paying 1/2 of a mortgage I will not be on and a house I will not be living in? We are both on the title deed