Confuzzled
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She needs to contact the company she is currently with and ask them the same question! It will depend totally on what they as a group have signed up for! Read the fine print or just call them up. I would expect though that the one moving out would be liable for the early redemption of their part of the mortgage as a new one would probably have to be drawn up and that would mean fee's etc......best to call them directly and find out what is what first thing tomorrow. |
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Ginger
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This should not trigger an early redemption unless the mortgage is being paid off for a refinance, the only way to get her name off the mortgage. Talk to the loan officer at the bank to see if this could be waived (if the refinance remains at that bank). They would have to qualify for the loan without her income and interest rates have gone up over 1%.
The terms are usually buried in the middle of the loan papers. The title company can get them for you, but the bank must order them online or from their loan department if hers are lost. Hopefully they specified a clause in the likely eventuality how one or more parties could equably buy the others out written by a real estate attorney. |
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amsterdam
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call the lender (bank or builkding society) and explain what you want. There will be forms to complete, probably an admin charge and it may take a couple of months, but not a big problem, people do this all the time |
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bostonianinmo
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Your name can only be removed from a mortgage by paying it off and refinancing it. That would trigger any early redemption or prepayment penalty.
A lender COULD agree to remove someone from a mortgage but there would be zero benefit to the lender by doing so, making it highly unlikely that they'd agree to that. |
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achrimsdale
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Depends on the terms of the mortgage.
Normally, as long as the mortgage is not being redeemed then there is no charge to pay. I assume that the two people who remain will simply be paying a half each instead of a third each. If so, the lender will not impose any fees.
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diana s
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Getting your name off the DEED does NOT remove your name from the mortgage note. My background is as a realtor and paralegal. The only way I know of to get one party's name off a mortgage is for the other mortagor's to go thru a qualification process to show they can make the payments. There may be an early closing penalty but sometimes the lender will waive it if the loan stays with them. |
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John
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regarding your quesiton - "does anybody know if will they be liable for all or part of the early redemption charges or not?"
No one can answer this question other than yourself. Check your mortgage documents or call the bank to find out.
And the only way for a person to take a name off a mortgage is thru refinancing. |
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madgooner
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For an admin fee,a mortgage lender will probably be ok with transferring the deeds and mortgage to the remaining debt to the existing partners (Assuming they can afford it), but does she really want to lose the value of any equity in the property? |
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FeatherHead
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As long as the name is on the mortgage, the person is responsible for everything about that mortgage. You can only have a name removed by the courts (legally).... |
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