3

The co-signer moved out about a home a year and a half into the loan, its been almost 7 years now since they moved out leaving me a note that she was not going to make another payment on the house.

Now six and a half years later I asked her to sign over the title to me , and she wants to be compensated for the money she put into it.

What can I do ? I have the payment coming out of my acct and have for the last almost 7 years.

closed as off-topic by Victor, littleadv, mhoran_psprep, keshlam, Chris W. Rea Nov 22 '15 at 13:46

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    Is she asking for the money she paid for the initial year and half or 50% of the home value? – Dheer Nov 22 '15 at 2:54
  • she just wants compensation for what she put into it is all she said – teri alford Nov 22 '15 at 3:13
  • she has also stated that she can not afford the house , her niece and I were together at the time and no longer are however I have a feeling even if I were to sell it she would not sign to sell just to force me to keep paying the loan – teri alford Nov 22 '15 at 3:17
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    I'm voting to close this question as off-topic because it is about a legal issue. – Victor Nov 22 '15 at 8:07
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    Warning to anyone else reading this in the future: never cosign a loan, especially a loan as big as a mortgage. There are so many ways it can go wrong; this is one of them. – Ben Miller Nov 22 '15 at 13:02
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With no agreement in place, the other person can go after half the equity in the house. In my opinion, wanting their down payment back seems reasonable.

10

Well, it sounds like you have two options:
1) Continue to jointly own the house.
2) Compensate her for her equity and get the title transferred.

I hate to tell you this, but she is entitled to half of the equity regardless of how much she paid into it. That said, she is still on the hook equally for the loan amount, but it won't do you any good if she is not willing to pay.

Also, option 2 probably isn't a good deal for your co-signer as she would still be liable for the entire loan loan (just as you are) regardless of the title.

  • would if be a thought for her to sign a quit claim deed? – teri alford Nov 22 '15 at 3:15
  • If she's willing to do that, sure -- but it sounds like repaying her investment is her minimum price for doing that. If so, take the offer and be grateful. – keshlam Nov 22 '15 at 13:42
  • You will also have to renegotiate the mortgage tomake her no longer a co-signer, if she has any sense. Without equity, there's no reason for her to continue to guarantee your loan as co-signer. – keshlam Nov 22 '15 at 13:52
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    Good luck convincing the bank to take a co-signer off the loan. You would probably have to refinance to accomplish that. – JohnFx Nov 23 '15 at 3:12

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