My girlfriend signed my mortgage. I paid my 4 year mortgage plus a $ 125,000 down payment. She paid for utilities. Now she wants half

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Dear Quentin,

Four years ago, I was downsizing and building a house while I still had a solid mortgage on my first home. I couldn’t get a loan on my own until another house was sold.

I applied for a mortgage with my girlfriend, I had a down payment of $ 125,000, and I paid my monthly mortgage along with property taxes. She pays utility bills.

Needless to say, something is not working out and I would like her to move. She wants half the value of the house since her name is on the mortgage.

Is she eligible for half the cost? Can I refinance without her knowledge? I think I’m a snooker myself. Please help.

House owner

You can email The Moneyist with any financial and ethical questions related to the coronavirus at qfottrell@marketwatch.com and subscribe to Quentin Fottrell at Twitter.

Dear Homeowner,

There are several scenarios here. If your girlfriend is on the deed of the house and also on the mortgage – a situation most mortgage lenders prefer – then she is a co-owner of the house, regardless of whether she paid off the monthly mortgage or contributed to the down payment. If she is only a co-owner of the mortgage, but has not been added to the deed of the house, she is, in fact, a surety.

“If your name is on the document before your spouse signed the mortgage, then usually the bank can only foreclose your spouse’s share in the house,” the message says. Cairns Law Office in Erie, Pennsylvania. “Usually your name is indicated on the house document, which means that you have an interest in it. The bank cannot foreclose because you did not transfer your interest to the bank. This means that you still own your share of the house. “


As it stands, it has taken all the risk of repaying the loan, but none of the rewards of owning it.

“Most mortgage companies will not provide a mortgage to just one spouse if the document is already in both names,” the company adds. “The mortgage company won’t want to deal with problems getting their money back if your spouse doesn’t pay off the loan. The lender will most likely want all of the owners to sign the mortgage, or they will not lend to any of the owners. “

You are not married, so the problem of public ownership does not arise. As it stands, it has taken all the risk of repaying the loan, but none of the rewards of owning it. You can refinance your loan if your credit and income are sufficient and provide all required tax documents, W-2, and appraisal, application and attorney fees. Mortgage rates are still at an all-time low, so you will probably get the best rate.

In such situations, it is always best to be frank and straightforward rather than confrontational. It is unlikely that you could have done this without your girlfriend’s knowledge, especially since participation in the program affects her credit rating. As long as she is on a mortgage and not on a document, she remains in a vulnerable financial position. It is in her best interest to refuse the loan if / when it becomes possible.

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