Co-ownership home issues...

Real Estate Investing
1
  • My sister and I own a home together
  • We are both named on the loan
  • Sister lives in house by herself and pays 100% of mortgage and utilities
  • She was 30 days late one month and for some reason only my credit was dinged for this.
  • My credit score has dropped and hers has gone up!
  • How do I get myself out of this house?
  • Quick Claim Deed?
  • She does not have the $ to buy me out (i put up down payment)

thanks for reading this and any suggestions you can offer.

2

Quit claiming it will not get you off the loan.
Unless the mortgage company agrees to remove your name (doubt it) - I’m afraid you’re stuck with it until you guys agree to sell it.

Alexander Burnett
@eztaxdeeds

3

This scenario is totally unfair on your part but that’s just how banks and loan institutions work. For example, if you and your sister collectively applied for a loan of $400,000 to buy a house with joint ownership over that house, in you each have a $200,000 loan, right? Not necessarily. Banks and lenders will record the individual liability as $400,000 to manage their risk, as each borrower is effectively joint and severally liable for the other’s loan. If one member of the party defaults on a payment, the other will be responsible for making up the difference given that the bank sees this loan as a single mortgage.

Alexander might be right… :frowning:

4

Unfortunately, the only solution is long-term. You can sue for a “partition” action to force the sale of the property. That takes some time, but the above-posts are correct - you are on the loan, so that puts you in a bad situation.