I purchased a house 12 years ago with a FRIEND, I am on the deed but not the mortgage. Can this friend refinance without my permission or knowledge?

Asked by Calidingo, Falmouth, VA Tue Sep 14, 2010

I paid half of the( mortgage, down payment ,and improvements)for 5 years, and then stopped paying half of the mortgage but continued other fees ( utilities, home improvements and groceries etc). for the next 5 years and just this year (2010) moved in with my boyfriend. I have continued to clean and maintain the property.
The FRIEND is trying to refinance .....with out my consent.

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Jay Hurst, Agent, McLean, VA
Tue Sep 14, 2010
You should take your documents to a Title Attorney for advice. If you purchased the home, how would you do that without a mortgage? Did you pay cash? Missing info here.
If you are both on the Deed, then you both own the property. There should be a document stating what percentage that goes with the deed.

Big question is what is your goal? Do you want out of the ownership? Rates are very good for refi right now.

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Connie McLean…, Agent, Fredericksburg, VA
Wed Sep 15, 2010
I am not an attorney, but, common sense warrants that you are both part-owners in the property since you are both on the deed. For your friend to refinance, it would seem he/she would have to get your permission because, normally when re-financing, the original trust(s) are paid off via the new trust(s), but in order to get the new trust(s), one must apply for a whole new mortgage. Since rates are lower now, if you wanted out of the arrangement, now would be a good time to do that. One hopes that you had an equity agreement in place as to payments, expenses, and equity-sharing that fully spells out each person's obligations. If you wanted to continue to own the property and you did not have a written, equity agreement in place, this would be an opportune time to have an attorney draw one up - it protects you and it protects your friend. Keep in mind, if you join your friend in obtaining a new mortgage(s) with your name on it also, you are just as responsible as your friend for payments, whether you live in the home or not. If your friend doesn't make the payment, you are responsible for it; otherwise, non-payment will wreck your credit. A problem would be if the property now has a lower value than the original trust(s); whereby cash would be needed to fully pay off the original trust(s). If the value is lower and you/your friend do not have the cash to make up the difference, there is no way a re-finance can happen.
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Cindy Jones, Agent, Alexandira, VA
Wed Sep 15, 2010
From the amount of information you have provided there would be nothing stopping your "friend" from refinancing the mortgage. However I would suggest that you both talk to a real estate attorney to make sure you have a written document outlining the roles of each of you in ownership and rights regarding the property.
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Vivianne Rut…, , Fairfax County, VA
Tue Sep 14, 2010

YES, your friend can refinance - unless you have a signed legal agreement that prevents your friend from doing so.
The mortgage loan was signed by your friend. Whatever private arrangement you had with your friend is between you and your friend.

It seems that you own the property without the obligation to pay the mortgage loan.

Frankly, I am more concerned about your friend.
Hopefully, you have prepared and signed a thorough agreement before you purchased the property that clearly defines your and your friend's rights and obligations.

Both of you should contact a knowledgeable real estate attorney.

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