Legal Question in Real Estate Law in New York
Mortgagee?
MY PARTNER AND I ARE CURRENTLY REFINANCING OUR HOME. THIS IS THE 3RD REFINANCE AND BECAUSE OF HIS POOR CREDIT SCORES, I HAD TO ATTAIN THE REFINANCING IN MY NAME ONLY. DOES THIS MEAN THAT MY PARTNER CANNOT BE ON THE DEED AND THEREFORE LEGALLY RESPONSIBLE FOR THE MORTGAGE WHICH IS QUITE SUBSTANTIAL? Shall I have a document drawn up protecting myself or my heirs, should I become deceased?
2 Answers from Attorneys
Re: Mortgagee?
1. His name can be on the deed without being on the mortgage.
2. You should have a written agreement indicating his responsibility to pay his share of mortgage debt to you.
3. You need a will. Good luck.
Re: Mortgagee?
Both your partner and you should be on the Deed to start with, unless you are on the Deed alone. This gives you full control of the property. If you are on the mortgage alone, you should have an agreement, signed and notarized, between you acknowledging that you will be the sole owner of the house unless and until the mortgage is paid in full. The agreement should also acknowledge that he is responsible for 1/2 of the mortgage balance and will contribute 1/2 of the cost, whether or not he is on the Deed. It should also specify that he will defend, indemnify and save you harmless in the event that a foreclosure action ensues based upon his failure to contribute to the mortgage (and any other maintenance, upkeep and other expenses you have agreed to share - like taxes, insurance, utilities, etc.) If he defaults, you should also have the right to terminate his residency, sell the property free and clear of his residency and his agreement to vacate the premises. This would give you maximum protection. If he is on the Deed, also get a quit-claim Deed terminating his interest in the property if he defaults and does not cure the default and the property has to be sold.