how to remove a person from a loan, the title of a house?

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My friend and I are on the mortgage, title and public records of property, we bought 2 years ago. The prepayment penalty is and we tried to sell the site but no luck. I do not want to keep the property because it is so my debt to income ratio is too high (I’m second on the mortgage, my friend, the principal owner), but my friend wants to keep the property. How do I remove my name from the mortgage, title … generally “free and clear” of this property. We agreed that it retains the title and I went out. We therefore insists no money on the property, because we’ve got 100% loans (80/20 same bank) … we pay on time, so no crime of payments … Just want to know … How can I do? I must quickly say that right? have to refinance in his name only? … Is there an easier way .. in Miami, I live in Florida

  1. Reply
    May 3, 2011 at 12:57 am

    refinance is an option. Another way to do this without refinancing is to create a trust, place the property into the trust, have the trust make the loan payments and have the other person relinquish their rights to the trust. That way, the lender can’t call the loan. Then that person shows proof to all three credit bureas that the trust is making the loan payments and the credit bureas will remove the mortgage/loan info from the credit report.

  2. Reply
    Dr. Diagnonsense
    May 3, 2011 at 1:47 am

    Getting your name off the title is simple. You just need to visit your county courthouse and sing a quit claim deed.

    To get your name off the mortgage your friend will have to refinance though. There’s no other way short of paying off the loan in-full.

  3. Reply
    May 3, 2011 at 2:10 am

    I’m not sure how mortgages work, but I co-signed 4 a frienda mine 2 get a used pc. however, they gave her a new 1 so she defauled on the loan cuz they dint give her what she wanted. I needed a 2’nd pc 2 store stuff & so I took over the loan. I couldn’t get the loan in my name but I was allowed 2 take over pmts & i have the pc. it all workt out well.

  4. Reply
    May 3, 2011 at 2:40 am

    you have a legally binding contract with the bank, your name is on that loan and there is no way to take your name off of the loan without the bank’s approval. You can’t just set up a trust or remove your name. The bottom line is that you agreed to pay the mortgage and if the mortgage doesn’t get paid, the bank can sue you for the payment.

    You have to refinance the loan. Your friend needs to get a new loan in his name without you, and use it to pay off the original loan in full. That is the only way you can get this loan off of your credit report.

  5. Reply
    May 3, 2011 at 3:06 am

    You may remove your name from the property by going through a title company and escrow company to remove your name. Doing the transaction this way might prevent legal problems in the future.

    Please do not sign a quit claim deed assigning the property to your friend, even though it would accomplish the same thing and it is legal Your friend could have legal problems in the future if you sign outside of a title company. This is very important.

    About getting off the mortgage note, your friend would have to refinance the existing mortgage. Your current mortgage holder will not alter the current contract you have signed 2 years ago.

    Who has really been making the payments on the current mortgage? If you or your friend can prove with canceled personal checks that your friend has been making the payments and you have only contributed cash for your part then you can make a case that you in fact do not pay the mortgage at the place you and you friend purchased together.

    The checks would have to be from your friends personal bank/checking account, and there must be 12-24 months of them. The proof can also come from the bank statements.

    What you are telling the mortgage broker securing a mortgage for you is that even though you signed on the mortgage with your friend, you did not and have not made any payments toward the mortgage. You simply helped your friend get qualified for the mortgage.

    I hope this has been of some use to you, good luck.

    “FIGHT ON”

  6. Reply
    May 3, 2011 at 3:49 am

    He needs to refinance into his name only and you need to sign over a quit claim deed. But I would advise you to have legal council advising you and to make sure the necessary paperwork is recorded properly.

  7. Reply
    May 3, 2011 at 3:57 am

    You QuitClaim to him and he refi s in his name only.
    Whether this is possible depends on value of home, friend’s credit, etc.
    This is one reason those 100% financing deals are a bad deal. You had NO equity in home and have built up only a tiny bit, although you’ve paid a LOT of interest over two years. FHA loans require 3.5-5% down payment, so he needs that much equity in home or down payment to do a refi now. TALK to current lender first, and find out what they say.

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