Legal Question in Real Estate Law in California
In order for me to get a decent mortgage loan refi (since I do not earn enough money), lender advised me that I would need to add my significant other to co-sign for the loan or add him to my deed of trust (adding him to the deed was not highly recommended).
Secondly, I do want my significant other to be added legally to my loan so that he would be able to keep my loan in case that I die.
FYI: The properties that I own are 2 condos. I would only like to refinance only one of my condos that have a high interest rate. How can I include my significant other to the loan that would make sense?
What would be the best way to get a better loan with my significant other.
Signed,
Curious
2 Answers from Attorneys
Have you discussed this topic with your significant other? I would think asking him to co-sign and thus become a guarantor would be asking a huge favor. If I were advising him, I'd advise proceeding with considerable caution. What's he getting in return for taking a big risk? Keeping a loan if you pass on doesn't seem to contain any benefits unless he also inherits the property for which the loan is collateral. In sum, this sounds like a bad deal for the S.O.
I agree with Mr. Whipple. If your significant other doesn't have an interest in either of the properties, then he is simply a guarantor of the loan. In that situation, he would sign the loan. It would not make sense for him to keep paying the loan that is secured with property he has no interest in if something happens to you.
Both of you may want to speak to a competent real estate attorney and see if this is really something you want to do.
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