Thread: PA homebuyer advice: one name on loan 2 on deed

Originally Posted by max427

Can i put her name on deed also, despite not being on loan?

The simple answer is, yes, you can. The more complex question is whether you should. Worst case scenario -- you put her name on the deed, a year or so later she finds someone else and moves to California, never to be heard from again. A little while later, you want to sell the house...OOPS! You can't provide a clean title!

And what happens if we break up and sell the home, does the settlement first go to pay off mortgage and the profits are split?

Unless the buyers were taking over your mortgage, it would have to be paid off at the time of sale. So, yes, the settlement proceeds would be used to pay off the mortgage. You would then divide whatever was left with the other owner. But remember, you could do that anyway, without having her name on the deed.

The other challenge too, if you add her name on the deed and you wish to refi, I think you need to get her sign off. As the saying goes, things are good until they aren't.

Best,

Originally Posted by max427

I am in the process of buying a home, first time home buyer. I already have a bid on a property and i am preapproved. The problem is my long time girlfriend has poor debt/income ratio so she was left off loan. So she will be living in the home, paying half the expenses and in the end if something happens to us she gets nothing. My questions are: Can i put her name on deed also, despite not being on loan? And what happens if we break up and sell the home, does the settlement first go to pay off mortgage and the profits are split? that i am ok with, what i couldnt do is let her walk with half the home and still owe over half on a mortgage of a house ive sold. I apologize if im being unclear. My thoughts were if the settlement money first pays the bank, ill put her on deed, if the bank allows- will they? Otherwise i could have an attorney write a contract stating that upon sale of the home all money first pays debts associated with mortage/home then the profits, if any, are split between these two parties, and both us sign. Please help me time is of the essence! Thanks!

Please get VERY competent advise. This is a bigger issue than a real estate salesperson is trained to advise on. Your (and her) attorney should be involved.

Originally Posted by tucsonhomes

And what happens if we break up and sell the home, does the settlement first go to pay off mortgage and the profits are split?.

When you sell the home, before any profits are split the liens must be paid off in full or satisfied. There are no profits or equity unless the liens are paid off. (Your mortgage is a lien on the property.)

Good luck and best wishes.

Call that attorney and do it the right way now or pay to fix it later. And talk to your lender, they may not want her on the deed.