holdfast Posted July 16, 2009 Report Share Posted July 16, 2009 My Daughter bought a house recently with her Boyfriend and guess what. They split up. Now she wants out of the Morgage he wants the House. Its fine with my Daughter but the bank wont let her out of the Morgage. The EX Boyfriend tried to take the Morgage himself but of course the Bank says no. At this point they dont want to sell. Apparently he tried his parents but denied by the bank. Now my daughter wants me and my Wife to Buy her a house and she would would pay that morgage. There is no way I want to do this even though her Ex Boyfriend bought her out, knowing she is still on the Houise Morgage. Any Ideas how My Daughter can get out of her half of the Morgage as she is now stuck for any other Loans. I hope I made sense Thanks Link to comment Share on other sites More sharing options...
bushart Posted July 16, 2009 Report Share Posted July 16, 2009 No expert by any stretch here Holdy but possibly the boyfriend should shop other financial institutions till one gives him a mortgage on his own. Thus that institution would then pay off the joint mortgage closing the contract with that bank (of course there's always penalties) and get a lawyer to ensure she's removed from leins. Other option is sell the house for costs and start again. Bushart Link to comment Share on other sites More sharing options...
bigugli Posted July 16, 2009 Report Share Posted July 16, 2009 As both parties have signed onto the mortgage, they will both be held liable until the mortgage is discharged. A legal severance of ownership/ division of assets/ separation needs to be done. You need the lawyer and that piece of paper he can produce through the courts because they are ruled to be common-law married. Link to comment Share on other sites More sharing options...
Fish4Eyes Posted July 16, 2009 Report Share Posted July 16, 2009 Her boyfriend needs to make more money to be able to take on the mortgage. An approximate figure is your net income has to be enough so that a 1/3 of it can go towards a mortgage payment. Link to comment Share on other sites More sharing options...
holdfast Posted July 16, 2009 Author Report Share Posted July 16, 2009 Thanks guys. just so you know is that they are not Common Law and at this time everything has been done amicable and for my Daughter Fairly as they are both good people. He is a welder and she works for the Government in a Lab. Of course they bought Calgary Prices, so we are talking Calgary prices. Im still Listening Link to comment Share on other sites More sharing options...
BillM Posted July 16, 2009 Report Share Posted July 16, 2009 If he can't afford the mortgage on his own, what other choice do they have but to put it up for sale? Link to comment Share on other sites More sharing options...
John Posted July 16, 2009 Report Share Posted July 16, 2009 As was said, if their names are both on the mortgage, they are equally responsible for the debt. Likewise I assume that they are also joint owners. I can only assume that he does not have the income to qualify for the mortgage on his own. If he does want to keep the house then he will need to either find another person to share ownership or of course find another source of income to qualify by himself. Perhaps he could consider renting a portion, although I am not sure of the current rules regarding rental income used as qualifying income. There would certainly be some legal costs involved. Depending on when they bought and their downpayment they may also be in a negative equity situation? If they can get out and remain whole I would think that selling the property and discharging the mortgage would be the smartest thing. Link to comment Share on other sites More sharing options...
Joey Posted July 16, 2009 Report Share Posted July 16, 2009 Maybe he could get his own parents to take over the other side of his mortgage. Have them sign and your daughter can sign off?? Just a thought. Joey Link to comment Share on other sites More sharing options...
Dara Posted July 16, 2009 Report Share Posted July 16, 2009 If she is on the mortgage, she is likely on the deed too. Now ain't the best time to sell in Calgary(I assume) Don't be in a rush. Make the payments and call it an investment for now. They should be splitting the payments, and then since he is living there, he should be paying a fair rent for the place. Kinda offsets her payments as she isn't living there. Rushing is only going to cost extra money. Give it a year or so for things to come around, unless they can make money on it now. Link to comment Share on other sites More sharing options...
hookerdown Posted July 16, 2009 Report Share Posted July 16, 2009 Up until a year and half ago I worked in the mortgage department for one of the big banks, and heard of this a few times. Keep in mind, Alberta has some unique laws that your daughter and her ex need to be aware of. Since neither of them can qualify for a mortgage on their own, they might want to take on a tenant or two, and have the renter sign a two year rental agreement. The additional rental income might strengthen their application. Other than that, the only option is to sell. By doing that they might be able to do one of several options. One of them can port (transfer) a portion of the mortgage to another property. They will still have to pay a prepayment charge on their current mortgage (split two ways), but it won't be as high as paying the mortgage in full. This will allow your daughter to be off the hook all together. Another option is to sell the house and have the purchasers assume the mortgage. This way neither your daughter or her ex will have to pay any prepayment charge. However, Alberta used to have a law (and still might) regarding mortgage assumptions. If the purchaser of the home defaults on the mortgage, then the intial seller (your daughter and her ex) will be liable for the money owed on the mortgage. Hope this helps. Link to comment Share on other sites More sharing options...
I'mHooked Posted July 16, 2009 Report Share Posted July 16, 2009 Thanks guys. just so you know is that they are not Common Law and at this time everything has been done amicable and for my Daughter Fairly as they are both good people. He is a welder and she works for the Government in a Lab. Of course they bought Calgary Prices, so we are talking Calgary prices. Im still Listening Are you certain of them not being considered common law by the CCRA? I'm not completely certain, but I do seem to recall something along the lines of 6 months of cohabitation is all it takes to be legally considered common law. Having a joint mortgage and residence just may be the icing on the cake that confirms to the government they are. Worth exploring some more if not 100% certain. It may be that if in a lawyers eyes they are believed to have been common law, than there may be a route through the courts and marriage laws which could force the sale of the 'matrimonial' house. Don't let your daughter do any favours for this guy, as at some point it's going to come around and bite her in the Is it possible she was used just to get the mortgage, knowing he couldn't qualify on his own? Not knowing the situation, just food for thought. If their union has been split, then any joint assets should be split as well including getting completely out of the mortgage. Link to comment Share on other sites More sharing options...
Twocoda Posted July 16, 2009 Report Share Posted July 16, 2009 if there is a stress to get her off the deed ...all she has to do is tell her ex she is going to declare bankruptcy ( even if it isnt true) he wil then have to protect his portion of the investment and due diligence to have her removed ....for the interim ....he has to pay her rent of half the costs.....the longer it goes on the better off she will be cuz of the appreciation of the property.... Look at the brightside ...at least they arent fighting over a child...its only a house that never had the oportunity to be a home Link to comment Share on other sites More sharing options...
John Posted July 16, 2009 Report Share Posted July 16, 2009 if there is a stress to get her off the deed ...all she has to do is tell her ex she is going to declare bankruptcy ( even if it isnt true) he wil then have to protect his portion of the investment and due diligence to have her removed ....for the interim ....he has to pay her rent of half the costs.....the longer it goes on the better off she will be cuz of the appreciation of the property.... Look at the brightside ...at least they arent fighting over a child...its only a house that never had the oportunity to be a home Not a very bright thing to do, especially if they have an amicable separation Link to comment Share on other sites More sharing options...
Dara Posted July 16, 2009 Report Share Posted July 16, 2009 Not a very bright thing to do, especially if they have an amicable separation Lawyers love that sorta crap Link to comment Share on other sites More sharing options...
gdelongchamp Posted July 16, 2009 Report Share Posted July 16, 2009 What bigugly said, do it legal with a paper trail. Fewer chances of problems in the future. They need to put this all behind them and move forward. Don't step in to help until this is done. Link to comment Share on other sites More sharing options...
Terry Posted July 16, 2009 Report Share Posted July 16, 2009 clearly he need to get a mortgage, find someone to buy her half or sell the place if not he needs to pay her rent on her half of the house, or she can rent her half of the property to pay her half of the mortgage and taxes and insurance and whatnot...but selling is the answer Link to comment Share on other sites More sharing options...
holdfast Posted July 16, 2009 Author Report Share Posted July 16, 2009 Here's what I know for sure. My Daughter wants to get out of the Mortgage completely so she can Buy a Condominium. She would Qualify only if she is Mortgage free. CHEAPER Than Rent. He has given her $15,000 back to her which she had originally provided for Down Payment. He has tried to get his parents to sign the Mortgage in place of my daughter but they don't Qualify. He expects to keep the House and if they sell, my daughter will lose the Down Payment for a Condo due to realtor fees, penalties and chances are the house hasn't valued. They've only been there maybe 4 months at the most. Another question is, they have a four year amortization. What happens then, can she get out. Link to comment Share on other sites More sharing options...
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