How do I get out of a half owned mortgage

**tmar89** · 09-07-2008, 08:24 AM

I am not sure if this forum is the right spot for this question but maybe I can get some help here. I current own a house with my father. We are both listed on the mortgage and split the payment and taxes. I want to move and get my profit from the house but my father doesn't want to move. So we talked to some people about how to do this where my father assumed full ownership of the house and mortgage and I get my profit from the "sale".

The first suggestion is that my dad refinance under his own name and take out an extra amount that would go towards me. The issue is that we are locked in at 5.5% and the rates we're getting quoted for are at 6.25%. It's not the end of the world, but it does increase my dad's payments per month and he is on a budget. He'd also have to pay closing costs and I don't know how much that would come to out of pocket.

The second suggestion was something called a quick release where they just take my name off of the deed and mortgage and my father assumes ownership of it all with everything remaining the same. The thing is that I want to get my profit from this house and my father cannot afford to give me that much money. So he'd have to take out some sort of loan and then make extra payments per month on top of the existing mortgage.

And with both scenarios, I don't know if I'd get taxes harder with one over the other by making profit on the house. Does anyone have any thoughts or suggestions.

**jamesww** · 09-07-2008, 09:00 PM

Originally Posted by tmar89

I am not sure if this forum is the right spot for this question but maybe I can get some help here. I current own a house with my father. We are both listed on the mortgage and split the payment and taxes. I want to move and get my profit from the house but my father doesn't want to move. So we talked to some people about how to do this where my father assumed full ownership of the house and mortgage and I get my profit from the "sale".

The first suggestion is that my dad refinance under his own name and take out an extra amount that would go towards me. The issue is that we are locked in at 5.5% and the rates we're getting quoted for are at 6.25%. It's not the end of the world, but it does increase my dad's payments per month and he is on a budget. He'd also have to pay closing costs and I don't know how much that would come to out of pocket.

The second suggestion was something called a quick release where they just take my name off of the deed and mortgage and my father assumes ownership of it all with everything remaining the same. The thing is that I want to get my profit from this house and my father cannot afford to give me that much money. So he'd have to take out some sort of loan and then make extra payments per month on top of the existing mortgage.

And with both scenarios, I don't know if I'd get taxes harder with one over the other by making profit on the house. Does anyone have any thoughts or suggestions.

You would be a fool to do the second option unless your dad gave you cash as it will only remove your interest in the property and you will still be held accountable for the mortgage.

Your only option without going to court is for your dad to get a second mortgage on the property and cash you out or refinance the home and cut you your share.

You can file for a court hearing requiring your dad to refinance and cash you out or sell the home. But this is not a very nice way of going about things and I will discourage you from doing that to family.

**Mike Taylor** · 09-08-2008, 04:09 AM

A refinance is the cleanest way to go about it. I don' know what kind of deal you had with your dad, but maybe you should offer to buyer down the rate for him since you are the one that is forcing the refi.