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Paul, Home Buyer in Jersey City, NJ

I had unwisely purchased a home with a girlfriend and it didn't work out. It has been 1 year. She is going to

Asked by Paul, Jersey City, NJ Tue Jun 10, 2008

buy me out and assume the mortgage. Is there a quick, painless way of doing this without costing a alot of money? How long will it take? I also found a property that is very affordable. It is something I could rent out in a year. Is that wise to do?

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Go to attorney. File a quitclaim deed. Shouldn't cost much; it's a standard thing.

http://en.wikipedia.org/wiki/Quitclaim_deed
0 votes Thank Flag Link Wed Jul 2, 2008
never buy property with someone you aren't married to.
0 votes Thank Flag Link Wed Jul 2, 2008
I would recommend that you put the matter of the buy-out in a contract and include the purchase price and closing date. Check with your mortgage company before you transfer your half of the property because they may not let ANY transfer of title without accelerating the balance of the mortgage upon transfer. You want to make sure you are off the liability of the previous Note and Mortgage that both of you signed when you purchased the property.
Rich Visotcky, Esq.
http://www.kvlawfirm.com
0 votes Thank Flag Link Wed Jun 11, 2008
Hi Paul,

If you and your girlfriend (or exgirlfriend or whatever the case may be) are on the deed as owners and you both took the loan, she can't assume the mortgage unless the lender approves her assumption. If you're removed from the deed, this will activate the "Due on Sale" clause that are typical in 99% of all loans.

If anything in the deed changes, in most cases, this will trigger the "due on sale" clause and the lender will be notified as soon as something changes in the deed, so be very careful. Although in the state of New Jersey, an attorney is not required for any real estate transaction (It is a misconception that you need an attorney in the sale of residential real estate), it is strongly advised that you consult with one if you can afford it.

The time frame is as long as the lender will provide your girlfriend to either refinance or change the loan over to her as the sole borrower of the loan. Remember that when you both got the loan, there was probably two salaries that the lender considered in approving the loan, now they have to consider that only one person will be paying the mortgage loan.

If you can't afford an attorney, you both have to talk directly to the lender and see if they can provide a solution to your situation.

Good luck and all the best.

Carmelo Torres
A Home For Sale Realty
ctorres@ahfsr.com
973-986-7901
Web Reference: http://carmelo.ahfsr.com
0 votes Thank Flag Link Tue Jun 10, 2008
You can quick claim yourself off the deed but you would still need to refinance in order to get off the mortgage and note. As for the purchase of the property to rent, if you can afford it, you really can't lose.
0 votes Thank Flag Link Tue Jun 10, 2008
Sorry Paul. No answer for you.

Call your attorney and ask what you can do.
It seems that nothing in this situation with be easy or as painless as you like.
Good Luck.
0 votes Thank Flag Link Tue Jun 10, 2008
Paul, in NJ it is best in this situation if you go back to your attorney (or get another one) to draw up the proper paperwork to have her buy you out. If everyone is amicable, it shouldn't cost much, but it needs to be done properly and legally. As for purchasing, NOW is definitely the time to buy if you can afford it. You might want to research now much it could rent for, though, before moving forward.
0 votes Thank Flag Link Tue Jun 10, 2008
Paul,
In california we have a quick claim deed which will transfer ownership to a friend, relative etc. This is easy and olny requires that you record the document within your county. You can find it online at any legal document site. However that does not transfer the loan liability if you are a Deed of Trust state. I would suggest that you obtain legal advise as to your state procedure.
OR why don't you draw a partnership agreement and rent the property with a management company and wait until the market returns and then sell it.
Web Reference: http://www.fidelitytitl.com
0 votes Thank Flag Link Tue Jun 10, 2008
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