Real Estate issues for couples - it's not just "paperwork"

  1. You have chosen to ignore posts from 2ada63d622e89774a9fdcbc90527ab8e. Show 2ada63d622e89774a9fdcbc90527ab8e's posts

    Real Estate issues for couples - it's not just "paperwork"

    Real Estate 101 - (I was over 30 when I learned this in the process of buying my first property. I've now bought and sold 11 houses)

    A mortgage is a legal agreement that allows you to borrow money to buy property. It's a very fancy loan, on which you pay interest. It is usually secured by the property; if you don't pay, the bank, or whoever owns your mortgage at that point, will take the property. You will still have to pay the remainder of the mortgage off in cash if the house is worth less than the amount left to pay on the mortgage. If you don't pay you will wreck your credit rating.

    If two people sign a mortgage, usually each is responsible for the whole thing if the other defaults. If my husband boards the next ET ship, I'll still have to pay all of the mortgage.  If one person stops paying their portion, the other is still responsible for the whole thing. It's not like you can say, hey, don't take the house; it's not my fault that boyfriend isn't paying his portion.

    The deed is the legal document that proves who owns the property and, if owned by more than one person, what proportional share they own (half, twenty percent, whatever.) You only get cash after a house is sold if it is worth more than whatever remains to be paid in the mortgage and any fees involved in selling it.

    If you own a property, you are required by the bank or company holding the mortgage to buy insurance on the property and you are required by the law to pay taxes on it.

    That's just the beginning of your legal responsibilities. Owning property jointly as an unmarried couple is different legally from owning as a married couple.

    I'm sure I've made some mistakes here that the other posters can correct (have at it) but that's my basic understanding.

    It may not be in our LW's best interest to be "on the mortgage" or "on the paperwork" or "on the deed." She may need to consult an attorney if she goes ahead with this. At a minimum she needs to sit down with a trusted friend or relative to have all the pros and cons of real estate ownership.
     
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    Re: Real Estate issues for couples - it's not just "paperwork"

    mistake:   "bought or sold"....I've been either the joint or the primary decision maker in the purchase or sale of property 11 times.
     
  3. You have chosen to ignore posts from WillDeerborn-of-Gilead. Show WillDeerborn-of-Gilead's posts

    Re: Real Estate issues for couples - it's not just "paperwork"

    And marriage when one party owns property in their name only may or may not change the legal ownership of the real estate depending on the laws of the state where you live and/or prenuptual agreements in place prior to the marriage.
     
  4. You have chosen to ignore posts from TwoCentDonation. Show TwoCentDonation's posts

    Re: Real Estate issues for couples - it's not just "paperwork"

    You're right, GMV, it may not be in her best interest to be on the mortgage and/or deed.  But, depending on how much $$ she gave him she may want some sort of official legal consideration.

    Or maybe the financial help she gave him was shady, like holding his assets in her name so he could claim a lower income and qualify for a low income loan....

     
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    Re: Real Estate issues for couples - it's not just "paperwork"

    Yes, twosie, I agree re having documentation on the money she contributed. I'm guessing the only way to cover it, though, would probably be as a loan. I'm not sure whether you can have separate contracts, other than being placed on the deed, regarding ownership of real estate based on having some of your money plowed into the initial purchase
     
  6. You have chosen to ignore posts from Elekktra. Show Elekktra's posts

    Re: Real Estate issues for couples - it's not just "paperwork"

    Glad you posted this topic, GMV.  This morning I advised LW not to put herself on the mortgage but I was in my usual rush and didn't take the time to explain why. I hope embedded within the 1500+ comments someone picked up where I left off. I agree too that it may not be LW's best interest to get her name on the deed after all.  As TCD points out, it depends on how much she forked over.
      
    Funny how so many of us commenters are more concerned over her financial decision than with her actual problem, "the other woman."  
     
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    Re: Real Estate issues for couples - it's not just "paperwork"

    Thanks, Elekktra. I think a few people talked about not getting tangled in home ownership, too. Wrongest put it pretty clearly. So I hope the LW reads all the way through and doesn't just look for the answers she wants. Perhaps some other reader will read it, too, and it will help that person.

    This isn't a parallel, but right after the economy fell I saw a few women who couldn't keep up with their mortgages being interviewed on TV and they all talked about just going to the bank or the mortgage company and signing a bunch of paperwork and not knowing what they were getting into. They were like "ok, well, they'll give me a mortgage, so it must be OK." They weren't dumb, but they were very naive. I have friends who signed mortgages with balloon payments and had to scramble to get rid of those. My otherwise brilliant young friend in the mid-west is paying off a huge mortage on a condo she bought for just under 300K; it's now worth about $85K, and it's in an edgy part of town so it isn't going to gain value again anytime soon.
     
  8. You have chosen to ignore posts from bzorn22. Show bzorn22's posts

    Re: Real Estate issues for couples - it's not just "paperwork"

    In Response to Re: Real Estate issues for couples - it's not just "paperwork":
    [QUOTE]You're right, GMV, it may not be in her best interest to be on the mortgage and/or deed.  But, depending on how much $$ she gave him she may want some sort of official legal consideration. Or maybe the financial help she gave him was shady, like holding his assets in her name so he could claim a lower income and qualify for a low income loan....
    Posted by TwoCentDonation[/QUOTE]

    What's shady about that?

     

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