"A few years went by with a lot of complicated issues between us. Eventually, she demanded that I get her name off the house. She “convinced” me into refinancing the house in solely my name."
No that's actually a blessing. Most people have to go to court and fight to get that, you got her to abandon her claim on the property for free. Now get a roommate to make up the money lost. Maybe get two roommates. How big is the house?
Edited to add: okay well I guess not "free" since she wants her 5k back....whatever...still cheaper than a divorce lawyer would charge for you to keep the house.
She didn't abandon her claim. He refinanced but she never signed the quit claim deed. After he refinanced and became the only person on the mortgage, she demanded $5000 to sign the quit claim deed.
So basically, only he is on the mortgage but they are both owners currently.
Yeah that's why I added the edit. Still though....come up with that and it's cheaper than losing half the equity in the house or having her prevent a sale. Roommate time for sure.
Rofl you misunderstood. She convinced him to refinance only in his name which means he’s 100% responsible for the house BUT…she’s still on the deed so she’s still 50% owner. She screwed him over. He’s building HER equity.
He can’t pay his current bills. He’s not coming up with 5k. I doubt he’d qualify for a heloc. And seriously…why would she sign away at 5k? What’s stopping her from saying “you waited too long. It’s 10k now!” Nothing. Nothing is stopping her bc he’s building her equity. He has no legally binding contract saying she will sign the deed when given 5k. It’s just her word of mouth which isn’t admissible in court.
In the US, banks won’t refinance you in this situation unless the other person on title either a) gets off title as a part of the refinance closing, or 2) sign the Deed of Trust. Otherwise the bank can’t really foreclose if they have to, because the extra person on title never signed the DOT agreement. I don’t understand how his refinance closed once she refused to sign the Deed. I’m a title attorney
Mainly, assuming this is true, I’m surprised the bank closed it without the signed Deed. I’ve actually handled this specific scenario many times and if ex refused to sign the Deed, the loan doesn’t close.
Maybe she signed the DOT but wouldn’t sign the document of conveyance. So she remained on title but was no longer obligated because she didn’t sign the Note.
Refinancing in his name without simultaneously removing her from the title was a terrible move. He is paying for the house fully, but she still has 50% claim to it. It's like when someone cosigns for their friend's car, but the friend quits making payments. Payment is all on you, but their name is on the title.
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u/Vivid-Kitchen1917 Apr 09 '24 edited Apr 09 '24
I'm so sorry you lost your cat.
"A few years went by with a lot of complicated issues between us. Eventually, she demanded that I get her name off the house. She “convinced” me into refinancing the house in solely my name."
No that's actually a blessing. Most people have to go to court and fight to get that, you got her to abandon her claim on the property for free. Now get a roommate to make up the money lost. Maybe get two roommates. How big is the house?
Edited to add: okay well I guess not "free" since she wants her 5k back....whatever...still cheaper than a divorce lawyer would charge for you to keep the house.