Need Help: Any way of removing my name from the mortgage

[GR8WhiTE]

I currently have a situation with my girlfriend (we all do).She and her mother got a loan with B of A. The house was bought by them about 4 years ago. Is there anyway my girlfriend can get her name off and have her mother be the full owner of this house?

 

They had went to the bank and they said her mother doesn't make enough in order for them to take my girlfirend's name off. The whole reason for this is because my GF doesn't want to ruin her credit. Her mother doesn't care whether she ruins her own credit or not.

 

What options does she have so she doesn't destroy her credit?

 

All help is appreciated.

[saladdin69]

I currently have a situation with my girlfriend (we all do).She and her mother got a loan with B of A. The house was bought by them about 4 years ago. Is there anyway my girlfriend can get her name off and have her mother be the full owner of this house?

 

They had went to the bank and they said her mother doesn't make enough in order for them to take my girlfirend's name off. The whole reason for this is because my GF doesn't want to ruin her credit. Her mother doesn't care whether she ruins her own credit or not.

 

What options does she have so she doesn't destroy her credit?

 

All help is appreciated.

To get off the loan the mom has to refi. GF is screwed. Have mom pay the GF the payment so GF can then pay the note making sure it gets paid on time. Any lates hurt the gf and if mom ever BK's or foreclosure occurs, gf will be getting a call from the bank.

 

Insert mandatory comment about not co-signing loans and doing business with family.

 

Keep this in the back of your mind if you are considering getting a loan with someone you are not married to.

[Brian B The Loan Professor]

Agree she signed and made her selfr a responsible party for the loan - she had to be there to get the loan so she has to share the burden of making sure it gets paid or risk credit - get a new loan in moms name is the only way and whatever she does DO NOT quit claim the property to Mom. That does nothing for the mortgage and simply means she would owe for a home she no longer owns.......

[luckydriver]

and the other stinky thing is i dont think you can even force someone to sell a joint property! it's lose/lose/lose

[GR8WhiTE]

 

I currently have a situation with my girlfriend (we all do).She and her mother got a loan with B of A. The house was bought by them about 4 years ago. Is there anyway my girlfriend can get her name off and have her mother be the full owner of this house?

 

They had went to the bank and they said her mother doesn't make enough in order for them to take my girlfirend's name off. The whole reason for this is because my GF doesn't want to ruin her credit. Her mother doesn't care whether she ruins her own credit or not.

 

What options does she have so she doesn't destroy her credit?

 

All help is appreciated.

To get off the loan the mom has to refi. GF is screwed. Have mom pay the GF the payment so GF can then pay the note making sure it gets paid on time. Any lates hurt the gf and if mom ever BK's or foreclosure occurs, gf will be getting a call from the bank.

 

Insert mandatory comment about not co-signing loans and doing business with family.

 

Keep this in the back of your mind if you are considering getting a loan with someone you are not married to.

No not at all. I'm perfectly fine with renting. They got the house together, both their names are on it. They're thinking of either outright selling it or doing a short sale. Does doing a short sale affect her credit?

[GR8WhiTE]

and the other stinky thing is i dont think you can even force someone to sell a joint property! it's lose/lose/lose

the reality is they both want out. It's a long story why. The big difference is the mom doesn't care if she messes up her own credit. But as of right now she still is making her payments every month.

[GR8WhiTE]

Agree she signed and made her selfr a responsible party for the loan - she had to be there to get the loan so she has to share the burden of making sure it gets paid or risk credit - get a new loan in moms name is the only way and whatever she does DO NOT quit claim the property to Mom. That does nothing for the mortgage and simply means she would owe for a home she no longer owns.......

Would have to show that she is making more money though. In order to take over the mortgage.

[cputrwz]

Yes, a short sale will be a credit blemish. It is usually looked at the same way as a foreclosure and both parties could be on the hook for the difference between the sale price and what the mortgage was.

Edited May 17, 2013 by cputrwz

[GR8WhiTE]

Yes, a short sale will be a credit blemish. It is usually looked at the same way as a foreclosure and both parties could be on the hook for the difference between the sale price and what the mortgage was.

wow thanks for that, I didn't know

[BRBiz]

 

Yes, a short sale will be a credit blemish. It is usually looked at the same way as a foreclosure and both parties could be on the hook for the difference between the sale price and what the mortgage was.

wow thanks for that, I didn't know

Usually you would get taxed on the difference between what is owed and what it was sold for but there is a special program though the IRS that makes it so you don't have to pay taxes on it.

[GR8WhiTE]

 

 

Yes, a short sale will be a credit blemish. It is usually looked at the same way as a foreclosure and both parties could be on the hook for the difference between the sale price and what the mortgage was.

wow thanks for that, I didn't know

Usually you would get taxed on the difference between what is owed and what it was sold for but there is a special program though the IRS that makes it so you don't have to pay taxes on it.

that's good to know. Anyone know what the name of that program is? As of right now, they don't know if they're going to do the short sale route or something else. But they are looking for exit strategies. If anyone has any suggestions feel free to share.

[jst300z]

 

a short sale will be a credit blemish

 

 

LOL, a blemish. A short sale is more like a 'compound fracture'. One you get it 'in line', you have years of recovery.

 

OP, sell the house.

[GR8WhiTE]

 

 

a short sale will be a credit blemish

 

 

LOL, a blemish. A short sale is more like a 'compound fracture'. One you get it 'in line', you have years of recovery.

 

OP, sell the house.

You're awesome...I think Rick Santelli should be president too! (But after Marc Faber)

[mariuszh]

 

 

 

Yes, a short sale will be a credit blemish. It is usually looked at the same way as a foreclosure and both parties could be on the hook for the difference between the sale price and what the mortgage was.

wow thanks for that, I didn't know

Usually you would get taxed on the difference between what is owed and what it was sold for but there is a special program though the IRS that makes it so you don't have to pay taxes on it.

that's good to know. Anyone know what the name of that program is? As of right now, they don't know if they're going to do the short sale route or something else. But they are looking for exit strategies. If anyone has any suggestions feel free to share.

The program is the "Mortgage Forgiveness Debt Relief Act of 2007". It is currently valid through December 31st, 2013.

 

The Mortgage Forgiveness Debt Relief Act of 2007 (Pub L 110-142, 121 Stat 1803) and its extending amendment allowed exclusion of income realized as a result of debt reduction on the taxpayer's principal residence. See IRS, Ten Facts for Mortgage Debt Forgiveness (Mar. 3, 2011). See also IRS Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments (2011). Under the Act, taxpayers may exclude debt forgiven on their qualified principal residence up to $2 million ($1 million for a married person filing a separate return). IRC §§108(h)(2), 163(h)(3)((ii). The law as originally enacted applied to debt forgiven in calendar years 2007, 2008, and 2009. Pub L 110-142, §2(a), (d), 121 Stat 1803. A 2008 amendment to the Act, applicable to discharges of indebtedness occurring on or after January 1, 2010, extended the Act through 2012. Pub L 110-343, Div A, Title III, §303, 122 Stat 3765. The fiscal cliff bill extended it through the calendar year 2013.

[BRBiz]

 

 

 

 

 

 

 

 

 

Yes, a short sale will be a credit blemish. It is usually looked at the same way as a foreclosure and both parties could be on the hook for the difference between the sale price and what the mortgage was.

 

wow thanks for that, I didn't know

Usually you would get taxed on the difference between what is owed and what it was sold for but there is a special program though the IRS that makes it so you don't have to pay taxes on it.

that's good to know. Anyone know what the name of that program is? As of right now, they don't know if they're going to do the short sale route or something else. But they are looking for exit strategies. If anyone has any suggestions feel free to share.

The program is the "Mortgage Forgiveness Debt Relief Act of 2007". It is currently valid through December 31st, 2013.

 

The Mortgage Forgiveness Debt Relief Act of 2007 (Pub L 110-142, 121 Stat 1803) and its extending amendment allowed exclusion of income realized as a result of debt reduction on the taxpayer's principal residence. See IRS, Ten Facts for Mortgage Debt Forgiveness (Mar. 3, 2011). See also IRS Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments (2011). Under the Act, taxpayers may exclude debt forgiven on their qualified principal residence up to $2 million ($1 million for a married person filing a separate return). IRC §§108(h)(2), 163(h)(3)((ii). The law as originally enacted applied to debt forgiven in calendar years 2007, 2008, and 2009. Pub L 110-142, §2(a), (d), 121 Stat 1803. A 2008 amendment to the Act, applicable to discharges of indebtedness occurring on or after January 1, 2010, extended the Act through 2012. Pub L 110-343, Div A, Title III, §303, 122 Stat 3765. The fiscal cliff bill extended it through the calendar year 2013.

Yes thank you! Keyword in there it has to be your principal residence to be able to claim this.

[mariuszh]

 

 

 

 

 

 

 

 

Yes, a short sale will be a credit blemish. It is usually looked at the same way as a foreclosure and both parties could be on the hook for the difference between the sale price and what the mortgage was.

wow thanks for that, I didn't know

Usually you would get taxed on the difference between what is owed and what it was sold for but there is a special program though the IRS that makes it so you don't have to pay taxes on it.

that's good to know. Anyone know what the name of that program is? As of right now, they don't know if they're going to do the short sale route or something else. But they are looking for exit strategies. If anyone has any suggestions feel free to share.

The program is the "Mortgage Forgiveness Debt Relief Act of 2007". It is currently valid through December 31st, 2013.

 

The Mortgage Forgiveness Debt Relief Act of 2007 (Pub L 110-142, 121 Stat 1803) and its extending amendment allowed exclusion of income realized as a result of debt reduction on the taxpayer's principal residence. See IRS, Ten Facts for Mortgage Debt Forgiveness (Mar. 3, 2011). See also IRS Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments (2011). Under the Act, taxpayers may exclude debt forgiven on their qualified principal residence up to $2 million ($1 million for a married person filing a separate return). IRC §§108(h)(2), 163(h)(3)( (ii). The law as originally enacted applied to debt forgiven in calendar years 2007, 2008, and 2009. Pub L 110-142, §2(a), (d), 121 Stat 1803. A 2008 amendment to the Act, applicable to discharges of indebtedness occurring on or after January 1, 2010, extended the Act through 2012. Pub L 110-343, Div A, Title III, §303, 122 Stat 3765. The fiscal cliff bill extended it through the calendar year 2013.

Yes thank you! Keyword in there it has to be your principal residence to be able to claim this.

 

Good catch, I never noticed that

[cputrwz]

Lol I wasn't trying to imply blemish was an ok thing... Hehe. To me a blemish is quite bad.

[GR8WhiTE]

 

 

 

 

Yes, a short sale will be a credit blemish. It is usually looked at the same way as a foreclosure and both parties could be on the hook for the difference between the sale price and what the mortgage was.

wow thanks for that, I didn't know

Usually you would get taxed on the difference between what is owed and what it was sold for but there is a special program though the IRS that makes it so you don't have to pay taxes on it.

that's good to know. Anyone know what the name of that program is? As of right now, they don't know if they're going to do the short sale route or something else. But they are looking for exit strategies. If anyone has any suggestions feel free to share.

The program is the "Mortgage Forgiveness Debt Relief Act of 2007". It is currently valid through December 31st, 2013.

 

The Mortgage Forgiveness Debt Relief Act of 2007 (Pub L 110-142, 121 Stat 1803) and its extending amendment allowed exclusion of income realized as a result of debt reduction on the taxpayer's principal residence. See IRS, Ten Facts for Mortgage Debt Forgiveness (Mar. 3, 2011). See also IRS Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments (2011). Under the Act, taxpayers may exclude debt forgiven on their qualified principal residence up to $2 million ($1 million for a married person filing a separate return). IRC §§108(h)(2), 163(h)(3)( (ii). The law as originally enacted applied to debt forgiven in calendar years 2007, 2008, and 2009. Pub L 110-142, §2(a), (d), 121 Stat 1803. A 2008 amendment to the Act, applicable to discharges of indebtedness occurring on or after January 1, 2010, extended the Act through 2012. Pub L 110-343, Div A, Title III, §303, 122 Stat 3765. The fiscal cliff bill extended it through the calendar year 2013.

Thanks a lot for the info. Interesting info here. If she decides to go the short sale way, I'll make sure she knows of this.

[GR8WhiTE]

At work today someone brought up "Harp" or "Harp1". Anyone know anything about this government program?

 

Supposedly it's for refinancing situations. HARP works with your bank and gives you a lower rate and the big plus is that by law they don't pull your credit report to re-finance you or look at your income. Don't take my word 100%. But it's something like this.

 

I don't know the qualifications.

[crabu2]

At work today someone brought up "Harp" or "Harp1". Anyone know anything about this government program?

 

Supposedly it's for refinancing situations. HARP works with your bank and gives you a lower rate and the big plus is that by law they don't pull your credit report to re-finance you or look at your income. Don't take my word 100%. But it's something like this.

 

I don't know the qualifications.

 

I looked into this Harp loan (Harp 2), but went with a conventional refi... I'm in the middle of the refi now.

 

1st, your loan must be a Fanny or Freddie (F&F) loan and they do pull credit. I was told minimum credit score must be 620, but it doesn't make any difference whether you have any active collections or what not on it.

 

2nd, your 12 month mortgage payment history must be spot on.. no lates, on your mortgage, in the last 12 months. There's a few other things in the guideline, but it's pretty easy to qualify.

 

Now, here's the catch... Banks can place, what is called "Overlays" on top of the F&F guidelines, as they are only minimum requirements. For example, my current 1st mortgage servicer (M&T) has their Harp program set where they tack on all kinds of points and fees, if you're not at a minimum of 95% LTV. Because of this, they wanted to charge me a rate of 4.125% and $8000 in closing costs on a $250K mortgage. They were the highest, when I looked into going with Harp. The best rate I got was 3.5%, but $6K in closing costs, which included an upfront escrow payment. The M&T offer didn't include escrow, since they already held the escorw.... Se how bad my current servicer wanted to rip me off? Average rate I found was 3.75%.

 

What I found, about Harp, is that it's really for people that are upside down, in their mortgage, that have been making payments on time, but can't refi because no one wants to lend more than the value of the home.

 

If you're below 100% LTV, have good credit and can show proof of income, you're much better off with getting a conventional loan.... I went from only being able to find a rate of 3.5%, on the 1st loan, to getting 3.375%, while being able to combine my 1st and 2nd mortgage. My only issue now is that have to pay PMI or about 2/3rds of what I own on the 2nd, if I don't want to pay PMI.

 

Harp has it's place, but it's geared towards those that have good mortgage payment history and can't qualify because they are upside down...

 

BTW, if you want to go HARP 2.0, I think you have till the end of 2015 to qualify, assuming you have an F&F backed loan, you haven't used it before (There is a small exception to this), and you got your loan, I think, prior to 2009......

Edited May 18, 2013 by crabjoe

[GR8WhiTE]

 

At work today someone brought up "Harp" or "Harp1". Anyone know anything about this government program?

 

Supposedly it's for refinancing situations. HARP works with your bank and gives you a lower rate and the big plus is that by law they don't pull your credit report to re-finance you or look at your income. Don't take my word 100%. But it's something like this.

 

I don't know the qualifications.

 

I looked into this Harp loan (Harp 2), but went with a conventional refi... I'm in the middle of the refi now.

 

1st, your loan must be a Fanny or Freddie (F&F) loan and they do pull credit. I was told minimum credit score must be 620, but it doesn't make any difference whether you have any active collections or what not on it.

 

2nd, your 12 month mortgage payment history must be spot on.. no lates, on your mortgage, in the last 12 months. There's a few other things in the guideline, but it's pretty easy to qualify.

 

Now, here's the catch... Banks can place, what is called "Overlays" on top of the F&F guidelines, as they are only minimum requirements. For example, my current 1st mortgage servicer (M&T) has their Harp program set where they tack on all kinds of points and fees, if you're not at a minimum of 95% LTV. Because of this, they wanted to charge me a rate of 4.125% and $8000 in closing costs on a $250K mortgage. They were the highest, when I looked into going with Harp. The best rate I got was 3.5%, but $6K in closing costs, which included an upfront escrow payment. The M&T offer didn't include escrow, since they already held the escorw.... Se how bad my current servicer wanted to rip me off? Average rate I found was 3.75%.

 

What I found, about Harp, is that it's really for people that are upside down, in their mortgage, that have been making payments on time, but can't refi because no one wants to lend more than the value of the home.

 

If you're below 100% LTV, have good credit and can show proof of income, you're much better off with getting a conventional loan.... I went from only being able to find a rate of 3.5%, on the 1st loan, to getting 3.375%, while being able to combine my 1st and 2nd mortgage. My only issue now is that have to pay PMI or about 2/3rds of what I own on the 2nd, if I don't want to pay PMI.

 

Harp has it's place, but it's geared towards those that have good mortgage payment history and can't qualify because they are upside down...

 

BTW, if you want to go HARP 2.0, I think you have till the end of 2015 to qualify, assuming you have an F&F backed loan, you haven't used it before (There is a small exception to this), and you got your loan, I think, prior to 2009......

your awesome, thank you for this info. The conventional way is harder for her mom because she doesn't show enough proof of income and doesn't have the greatest credit. So, going to have to give HARP 2.0 a call....thanks again

[luckydriver]

for conventional dont you need 3 months of mortgage payments in the bank?

[saladdin69]

Do the math. How much do they owe? What is a FMV of the house? How much would GF have to bring to the table to sell this thing?

 

GF will get no help. She will have to come up with the money alone. If she does not want a foreclosure or credit hit then she best be saving money fast.

 

 

GF needs to refi in her name then sell it on her terms. Take mom out of the equation.

 

If you wait for mom to act, gf will be looking at a foreclosure/short sell soon.

[GR8WhiTE]

Do the math. How much do they owe? What is a FMV of the house? How much would GF have to bring to the table to sell this thing?

 

GF will get no help. She will have to come up with the money alone. If she does not want a foreclosure or credit hit then she best be saving money fast.

 

 

GF needs to refi in her name then sell it on her terms. Take mom out of the equation.

 

If you wait for mom to act, gf will be looking at a foreclosure/short sell soon.

There has to be a way for the mom to refinance though, no? What if she shows she has a new job and is now making more?

[crabu2]

There has to be a way for the mom to refinance though, no? What if she shows she has a new job and is now making more?

 

It depends... It's not just making enough $$, it's also showing a steady job history. You also have to look at any additional debt and her credit.

 

Based on what I have learned with my current refi, she will need to have a mid FICO score of 620+ and be under 40% in debt to income, with the new mortgage. She also can't have any liens, or judgements appearing. I was told some charge offs, on the credit reports, were ok. In addition, for my refi, they wanted 3 years of tax returns and my last 2 paystubs.

 

My refi was based on Fannie Mae guidelines.... Depending on who's guidelines a lender follows, requirements will be different... Depending on her situation, she might be able to qualify under other programs, even with as little was 3.5% down (FHA).. She needs to speak with a mortgage broker, and a good one at that, depending on her current situation...