How to break from a multiple mortgagee loan

Two partners and I entered into a mortgagr for a rental property. I want out. How do I do this?
  • January 26 - Marietta
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Answers (6)

Thanks everyone for your responses. My situation is tricky in that this is an investor loan (the property is rented out). The mortage consists of two loans, one large and one small.Evidently banks do not refinance the entire loan(s) balance in this case, which would result in much higher closing costs for the three of us (three partners in this deal). This is not doable by any of us.

Is this accurate (banks not refinancing 100% of an investor loan)? It seems I am out of options here.

Thanks again everyone,

Regards,

Luis - Alpharetta, GA
  • February 04
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One simple way to take care of this would be to get a refinance. During the refinance you can take your name off of the mortgage. Also, depending on your current loan, a refinance can possibly save your partner money. The best thing for you to do is to speak with a lender such as myself to see if you can get started on refinancing. If you have any further questions or if you would like a loan or refinancing, feel free to contact me.

Good Luck!
  • January 27
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The Mortgagee is the bank.  The Mortgagor is the owner.  The "OR" goes with who owns the "ore".
  • January 26
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Profile picture for wetdawgs
If you can convince your partners to buy you out, then meet with an attorney to do the documentation properly.  The partners will have to refinance in their names on their own qualifications, so will have to be able to afford it.

If you can't convince your partners to buy you out, and you can't convince your partners to sell the property so you can all get out, then you are stuck unless you had an escape clause in the legal contract with your partners.    You may wish to hire a mediator.
  • January 26
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Assuming your partner can qualify for the mortgage on his/her own, they would just refinance into a new mortgage and also take you off of the title. Will the partners owe you any funds?
  • January 26
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Profile picture for Outer Banks N C
Since you are both on the mortgage you can't just sell your half unless the mortgage company will allow another borrower to replace you, which is unlikely. The other option is to sell your half to the other half owner or sell the property to pay off the mortgage, like in a divorce. My first call would be to the mortgage company to ask for their advice.
  • January 26
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