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texasdstdvl · May 9, 2007, 06:26 AM

My husband is the primary signer on our mortgage we had use my daughter as a second due to the fact I could not prove my income.We had to use her boyfriend as a third.I want to know what his rights to our house are since he has failed to hold a job and has been fired from the job we used on the mortgage.He pays no part of our house payment.I was told that he had no rights and could be evicted.Where as she could not be evicted since she is the second co signer.She was fired from the job that she used on the mortgage as well and neither have paid a dime on this house payment.Please let me know if we can legally evict him.

excon · May 9, 2007, 06:43 AM

Hello tex:

Hold on podner. He has ownership claims on the house. IF you evict him, he's going to call the bank and the bank is going to call in your loan.

You're in a heep a trouble. I'd hire a real estate lawyer, or I'd sell. You may have to sell anyway, if the loan is called.

excon

PS> (edited) Besides, you can't evict an owner - only tenants.

mr.yet · May 9, 2007, 07:24 AM

The question would be "Are they on the deed?"

ballengerb1 · May 9, 2007, 07:41 AM

Sounds like the BF is on the mortgage but not neceessarily the deed. If he has been living in this home he has established residency. Like Ex says, you're in a heep of trouble. Sorry to say but this is why it is a bad idea to bring in unrelated people on a mortgage. Heck, now that I think of it, related people aren't always good either. He is not a tenant and you are not his landlord so the eviction idea won't fly.

Fr_Chuck · May 9, 2007, 07:52 AM

Yes, he has rights, and it needs to be addressed.

excon · May 9, 2007, 07:58 AM

Hello again:

I don't understand how he could NOT be on the title.

In any event, I don't think that is the germane issue. He IS on the mortgage - of that, there is no question. The bank depended on his income to grant the loan.

Given what we know, he's still going to be obligated after the eviction. Do you think he's going to keep on paying? I don't. When the bank duns him, he's going to tell them that he doesn't live there anymore, and the bank WILL call the loan. No?

excon

PS> (edited) Of course, the OP is making the payments, but the boyfriend is still obligated. I still think he's going to call the bank if he's evicted. Would you walk away with your obligation in tact, knowing you'll get nothing in return? No, of course you wouldn't.

ballengerb1 · May 9, 2007, 08:09 AM

excon, could you further explain why the bank would call the loan if the payments are being made. I'm not understanding this point.
Thanks

excon · May 9, 2007, 08:17 AM

Originally Posted by ballengerb1

Excon, could you further explain why the bank would call the loan if the payments are being made. I'm not understanding this point.
Thanks

Hello again, ballenger:

In order to qualify, a borrower needs to have a certain income. The OP didn't have enough income so they used the bf's income. That made the bank happy knowing that the people who live in the house have enough income to cover their loan.

When they find out that that's not true anymore, I think they'll get very nervous and call in the loan. I'm sure there are provisions for that in the loan documents.

excon

PS> (edited) It's the same idea with a contract for sale. If there's a loan on the property, the seller won't record the contract, because if the lender finds out that the person who they loaned the money to ISN'T living there, they'll call the loan - even if the payments are right on time.

Fr_Chuck · May 9, 2007, 08:39 AM

You all really need a local attorney on this one, as a co-signer if he name is not on the deed, ( first he would have been stupid to do that) he can be held liable to pay the loan if the others don't

So he can show that you could not and would not have gotten the loan without using him. Depending on various state laws, a judge would take this into consideration that this well could give him or allow him the right to enter the property
And he may be able to sue in court to try and force you to re-finance the house to get him off the loan.
* This is of course one of the reasons you don't get a loan larger than you can actually afford on your income.

And of course when you needed him, he was there for you, now you are not there for him, really won't look good to a judge
So I guess you can go down to the court house and try and file a eviction and see what the judge has to say

excon · May 9, 2007, 08:54 AM

Hello again:

Of course, the Padre is right on.

However, there is one further clarification that needs to be made here. There are two kinds of home mortgages people buy - 1) owner occupied and 2) for investment purposes. Investment loans require a higher down payment and carry a higher interest rate.

IF the loan on tex's house is of the investor variety, then a call from the boyfriend won't matter a hill of beans. He's an investor, and he remains obligated.

This loan, however, IS obviously an owner occupied loan. That's why the boyfriend needs to continue to live there, that's why I think he's an owner, and that's why I think they'll call the loan if he's evicted.

excon

texasdstdvl · May 9, 2007, 09:36 AM

I don't want to evict him I just want him to work and pay his part that was already agreed to.Also my daughter is very important to me and she has my granddaughter 7 months ole I don't want them to leave I just need to find a way to make him pay his part.I don't understand how he can have all these rights but no obligation to pay.That makes no sense to me.If husband did not pay we would be moving.

excon · May 9, 2007, 09:52 AM

Hello again, tex:

Well, that's a horse of a different color, podner. (Please excuse my silliness - I don't know what comes over me.)

From a legal perspective, you have a partnership agreement with your daughter's boyfriend - even if you've never written a thing. That agreement (even though it hasn't been written) says that he will pay his percentage of the costs of the partnership.

He didn't, and you can sue him in small claims court over it. That's something I WOULD do.

excon

excon · May 9, 2007, 10:00 AM

Hello again, tex:

I'm going to supplement my answer. Seems I'm doing that a lot of that with your question. But you brought up some very interesting legal stuff, here.

The reason the judge will find that you HAVE an agreement with him (even though it wasn't written), is because all the parties ACTED as though there was one. Therefore, it can be inferred (and will be in court), that indeed, there WAS an agreement.

excon

ScottGem · May 9, 2007, 10:33 AM

The key here is the nature of the what was signed. You specifically used te term co-signer. A co-signer is not responsible for payments until or unless the primary signer defaults. A co-signer is a guarantor. They guarantee the loan will be paid.

However, a mortgage lender rarely uses co-signers since their loan is secured by the property. Also, lenders will rarely include signators on a mortgage that aren't going to be listed on the deed.

Your problem is more one of motivation. All you can do is is threaten to throw him out if he doesn't hold up his end.

ballengerb1 · May 9, 2007, 10:37 AM

Using Excon's logic ,which is quite good, the BF has no obligation to help you pay since he has never ACTED like he should pay. Your original post left that part a bit unclear but all 3 of you have a obligation to pay the mortgae and the holder doesn't care who makes the payments. Did the BF make an agreement to contribute to the mortgage in writing? You did not ask this question but I'm going out on a limb. The BF didn't turn into a deadbeat over night and you likely can't change him. He is an adult, out of work, and sounds shiftless. I can't give you good advice on how to handle him since there is no good way to do that. He won't change so do you think you can somehow live with this arrangement and accept him for what he is? I am so sorry for your situation.

excon · May 9, 2007, 11:31 AM

Originally Posted by ballengerb1

the BF has no obligation to help you pay since he has never ACTED like he should pay.

Hello again, ballenger:

The actions I'm referring to (and the court will too), is that he signed the mortgage and moved in. Those actions infer that he was going to pay. He only acted like a flake AFTER he had a nice comfortable pad to live in.

More importantly, however, are the actions of the OP. Clearly, they would not have ACTED like they did, unless they expected the boyfriend to pay his share.

excon

LisaB4657 · May 9, 2007, 01:25 PM

Originally Posted by texasdstdvl

My husband is the primary signer on our mortgage we had use my daughter as a second due to the fact I could not prove my income.We had to use her boyfriend as a third.I want to know what his rights to our house are since he has failed to hold a job and has been fired from the job we used on the mortgage.He pays no part of our house payment.I was told that he had no rights and could be evicted.Where as she could not be evicted since she is the second co signer.She was fired from the job that she used on the mortgage as well and neither have paid a dime on this house payment.Please let me know if we can legally evict him.

Anyone who lives in the house who is not listed on the deed as an owner may be evicted. They have no rights to ownership of the house even if they signed the mortgage.

If you evict either or both of them and they choose to contact the lender then you shouldn't have a problem. The lender is allowed to call the loan (make it immediately due and payable) if they feel that the security for the loan is threatened. That would be something like the house suddenly being substantially devalued. The house is the security for the loan, not the jobs. If you have been making the payments on time then there is no reason for them to call the loan. People lose their jobs all the time. Their lenders don't call their loans just because they lost their jobs.

I understand that you don't want to evict them but you merely want them to pay their share. If they are true co-signers and not just guarantors of the loan then you can sue them for their share of the mortgage payments that they have not made. But you can't sue them for future payments--only those payments you made in the past on their behalf. Of course if they have no money then you won't really be getting anything out of them.

(The difference between a true co-signor and a guarantor in this case is that the co-signor signs the mortgage note in the same place that your husband signed. A guarantor would not sign the actual note. A guarantor would sign a document saying that they guarantee they will make the payment if your husband fails to. A co-signor who signs the note along with your husband is just as responsible for payment as your husband.)

As long as they are not listed as owners then I suggest that you have a calm, rational discussion with them where you explain to them that they have to find jobs and start making payments or you will be forced to have them evicted.

If they are listed as owners on the deed then none of the above applies. You can't have them evicted but you can probably sue them for their share of the mortgage payments that you already made on their behalf.

ScottGem · May 9, 2007, 02:56 PM

Thanks Lisa for clarifying what I was saying about the difference between a signator and a guarantor.

I will differ from your advice in one point. I agree Tex needs to sit them with them and explain they need to get jobs, but I don't think she should hold the threat of eviction over them, rather the threat of foreclosure. If she can't afford to keep up the payments, that becomes a real issue and not only will they be out on the street but mom will too.

texasdstdvl · May 13, 2007, 11:48 PM

Thanks everyone.I just told them that either they pay a certain amount or we lose the house.We can keep up the payments without them but we are not going to pay for them to live for free and do nothing around the house that is a horrible example for kids and we just aren't going to live like that.Thanks again.I appreciate all responses.