Legal Question in Real Estate Law in New Jersey
Refinancing A Home that is not his
My parents divorced and we were left my mothers half of the house. My dad remarried and now his new wifes daughters future husband wants to take out a refinance on the home in order to build it up to sell it in 6 monthsand then buy it and give us our half. He keeps on insisting that he wants our signatures on the deed to the house to show him we know what he is doing. He also is having his name added to the deed so he can take over mortgage payments. I was wondering can he do this and why is he so intent on having us sign it in ink? Are we responsible for the refinance amount if he defaults? and by signing our names what else could we be responsible for? also what are the implications of him being added to the deed ''just to pay the mortgage''? wouldnt that entitle him moneis from a home that isnt his at all when sold?
4 Answers from Attorneys
Re: Refinancing A Home that is not his
DO NOT SIGN A DEED. YOU ARE AT RISK TO LOSE EVERYTHING.
I strongly, strongly suggest you hire an attorney to advise you, and follow the attorney's advice. If you do what your ? brother in law wants, you will be at risk to lose all the value that you now have in that house. His suggestion is a very very bad way to accomplish what he says he wants to do. Please contact an experienced real estate attorney near you, NOW.
If you are in northern NJ, please contact me.
A fairly small amount of money spent on a lawyer now may save you thousands of dollars and much heartache.
Re: Refinancing A Home that is not his
Your scenerio raises a lot of questions. They should be asked and answered in front of an attorney with all the documents in front of him/her. The simple answer is do not sign anything your step-sister's fiance hands you, especially without an attorney looking at it. Our office specializes in matters like this and we would be happy to help you. Just call for an appointment, mention LawGuru and the first half hour is free. Good luck.
Re: Refinancing A Home that is not his
I AGREE WITH ROBERT THAT YOU SHOULD NOT SIGN THE DEED. THIS GIVES HIM AN INTEREST IN THE HOUSE THAT HE PRESENTLY DOES NOT HAVE. HE CANNOT REFINANCE WITHOUT BEING IN TITLE. AS A CO-OWNER, YOU WOULD BE REQUIRED TO SIGN THE MORTGAGE, BUT HE COULD BE THE ONLY ONE TO SIGN THE NOTE SUPPORTING THE MORTGAGE. ONCE YOU SIGN THE MORTGAGE, THE HOUSE COULD BE LOST EVEN IF YOU HAVE NO FINANCIAL RESPONSIBILITY TO THE MORTGAGE COMPANY, SINCE YOU WOULD BE CONSIDERED AS ALLOWING HIM TO USE YOUR EQUITY TO SUPPORT THE LOAN. IF HE WANTS TO BUY YOU OUT, LET HIM DO SO BY TAKING WHATEVER LOAN HE NEEDS TO DO SO. WHILE HIS INTENTIONS ARE GOOD, ALL DOCUMENTS SHOULD BE REVIEWED BY A COMPETENT REAL ESTATE ATTORNEY AND ANY ADDITIONAL AGREEMENTS THAT ARE NEEDED SHOULD BE PREPARED BY YOUR ATTORNEY AND SIGNED BY ALL PARTIES.
Re: Refinancing A Home that is not his
How can I put this... HELL NO, do NOT sign any thing! The other attys are NOT looking just to generate some business here. If you were my brother, I'd smack you in the head for even THINKING about signing the deed! This is a wierd, and complex proposal, and frankly makes no sense. If the guy wants the house, let him buy it THEN redo the home. If he can't buy it now, how could he buy it after it's improved and worth more??? This "idea" does not pass the "stink test".
If you think the guy is NOT trying to screw you, YOU pick an atty, go to the attorney together, make HIM pay, and see what the atty says. IF the atty thinks his proposal is "do-able", then you HAVE to get separate attys, so YOUR atty can then review the proposal.
"Caveat emptor" - buyer beware, and you are the "buyer" here!
Good luck.
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