Legal Question in Real Estate Law in Pennsylvania

Re: co-ownership of new home purchase

Removal without refinancing may prove to be a difficult task. If the lender will consent to the removal that all will be fine. However, a lender is not likely to release a party from liabilty. As long as the mortgage is paid there will be no problem. a default will effect everyones credit rating. However, the ex boyfriend may have difficulty obtaining new loans unless he is removed. Gerald Hershenson Esq. 215-579-9390

Re: co-ownership of new home purchase

Often, co-owners of a property will have an agreement that provides for a buy-out if one owner wants to give up his interest. This would usually be based on some value, and may be based on a current appraised value.

Without an agreement, you are not _Required_ to buy him out, but he could go to court to force a sale of the property, with a division of the net proceeds.

If you are willing to buy out his interest, usually it is possible to refinance the property in order to pay off any mortgage you now have, and to pay your boyfriend for his interest. At the loan closing, he would sign a deed transferring his interest in the property to you.

If he just deeds his interest in the property to you, and you continue to make the mortgage payments, it may work out without problems. However, you should be aware that the mortgage documents usually prohibit transfers of interest and that his transfer to you may be a "default" under the mortgage, permitting the mortgage holder to foreclose on the property.

You should have the assistance of an attorney in this, because you need a buy-out agreement with conditions to protect you. Both of you will have to agree to the manner in which the value is established. Once there is such an agreement, you may apply for mortgage in your own name.

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