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Getting out of a mortgage - penalties?

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Rob_Essex
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2011/03/23 21:51:45 (permalink)
USA DEALS

Getting out of a mortgage - penalties?

I know next to nothing about mortgages! If you take out say a joint 250K mortgage, but one of the parties involved wants out after a year what are the options?
#1

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    USA DEALS
    john_cappa
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    Re:Getting out of a mortgage - penalties? 2011/03/23 22:01:14 (permalink)
    what do you mean wants out? What do you mean by one of the parties?
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    lewis2000
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    Re:Getting out of a mortgage - penalties? 2011/03/23 22:04:15 (permalink)
    what do you mean by mortgage
    #3
    Red Bull
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    Re:Getting out of a mortgage - penalties? 2011/03/23 22:05:48 (permalink)
    Can the remaining party afford on paper a 250k mortgage on their own (60k+ per year salary), if not then..........

    Festar: You can't plead poverty with 2 cars. That's like a little Kenyan chap pleading poverty with 2 packets of uncle bens rice hidden under his bed.
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    john_cappa
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    Re:Getting out of a mortgage - penalties? 2011/03/23 22:07:13 (permalink)
    lol! You know what i meant! The questions are vague! There are only two parties! The bank wont want out, and if you want out you sell and pay off the morgage and keep profit or negative equity!
    #5
    crazycorza
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    Re:Getting out of a mortgage - penalties? 2011/03/23 22:07:56 (permalink)
    The mortgage company can force you to sell the house and then divide up the outstanding balance equally.
    There will be fees involved though.
     
    The best option may be to let the house out and go your seperate ways, but agree to pay the mortgage shortfall equally until the day you are able to sell without incuring loads of fees
    #6
    john_cappa
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    Re:Getting out of a mortgage - penalties? 2011/03/23 22:08:58 (permalink)
    missed the word "joint" lol! Depends on whether or not on paper\income the remaining person can take on the entire morgage.
    #7
    Red Bull
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    Re:Getting out of a mortgage - penalties? 2011/03/23 22:15:11 (permalink)
    crazycorza

    The mortgage company can force you to sell the house and then divide up the outstanding balance equally.
    There will be fees involved though.


    Who would agree to sell their house and pay exit penalties just to come off of a mortgage. The fees alone would probably be 5k + without solicitors and estate agents et al. As above just let it out or take the person of of the mortgage, the lender won't have an issue with this as long as the remaining party earns fcuk loads. They would re score the applicant too

    Festar: You can't plead poverty with 2 cars. That's like a little Kenyan chap pleading poverty with 2 packets of uncle bens rice hidden under his bed.
    #8
    Rob_Essex
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    Re:Getting out of a mortgage - penalties? 2011/03/23 22:42:59 (permalink)
    Sorry if I wasn't clear enough. Couple of my mates got a mortgage but one wants out. I don't know how it works with a joint mortgage, can someone buy out the person that wants out? Or does that create a whole new mortgage? 
    #9
    Red Bull
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    Re:Getting out of a mortgage - penalties? 2011/03/23 22:48:07 (permalink)
    They ought to really phone a mortgage advisor and have a sit down with them and discuss their options. There are too many variable to consider here for anyone to really offer any sort of proper advise

    Festar: You can't plead poverty with 2 cars. That's like a little Kenyan chap pleading poverty with 2 packets of uncle bens rice hidden under his bed.
    #10
    Little Big Horse
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    Re:Getting out of a mortgage - penalties? 2011/03/23 22:53:26 (permalink)
    As Red Bull said unless the individual keeping the mortgage or wanting to keep the mortgage is earning a decent wage they probably won't be able to... I imagine they bought it together because they couldn't afford it alone?

     “There's only two people in your life you should lie to...the police and your girlfriend.”
    Jack Nicholson
    #11
    Rob_Essex
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    Re:Getting out of a mortgage - penalties? 2011/03/23 23:00:51 (permalink)
    Yes lbh that was the plan. I knew there would be alot of variables so I guess it was a very broad question but I have no clue when it comes to mortgages.
    #12
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