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Hello everyone my girlfriend and I are buying a house toghter and it going to be fha and her mom is the realtor we just sign contract but her name is first then mines and I come second and on everything and to paperwork for the house and the fha paperwork I am co-borrower so what does that mean ? I just want to make sure that everything is 50/50 how can I tell ? Thank for your help
It doesn't matter whose name is listed first. Co-borrower means that you are also responsible for the loan. Just make sure that both of your names are recorded on the deed.
Perhaps it would be easier on the OP if someone told him the ways he can take title.
And because they is not my area of expertise, but I believe, one way to take title, you each own 50%. When you die, it passes to your heirs. (Tenants in common, right?)
Another way is if you die, 100% ownership is awarded to the other surviving owner. (Tenents by entirety)
Hopefully someone will be along to explain your options. If you are a first time buyer, it's unreasonable to expect you to know this at the beginning of the process. Great first questions! Don't stop asking them. Remind yourself, this is the single most expensive investment you have made to date. Treat it with the respect it deserves.
Yes, and it'll confuse you further to see the word "tenants" but that's just part of the legal term.
Taking title as Tenants by entirety or Joint tenants means you each own all the property so that upon death it is kept by the survivor.
Taking title as Tenants in Common mean you each own a designated portion, likely 50% each, and upon death of one of you that portion passes to the deceased's heir. Not uncommon in business ownership. Say Anderson and Babcock. Babcock senior passes away and now Babcock Junior owns the business with Anderson.
Do find out how you're taking title and if it's in Common...what percentage had they envisioned? If you don't like it, you should not sign and should not continue to settlement.
Generally, there are three forms of ownership by which 2 or more individuals may hold title:
Joint Tenants with right of survivorship. Joint Tenants own equal shares of the whole property. Upon death of one of the parties, that interest automatically transfers to the remaining parties. A Joint Tenant can not sell the property without the consent of the other Joint Tenants. (However, there are ways to dissolve a Joint Tenancy or to force a sale of the property.)
Tenants in Common own an individual interest in the whole property. The ownership interest may be apportioned, e.g., one owner owns a 75% interest and another owns 25%. A Tenant in Common may sell their interest to another party without the consent of the other owner(s). Upon death of a Tenant in Common, their interest does not transfer to the remaining owners; instead, their interest transfers to their personal heirs.
Tenants by the Entirety is a form of Joint Tenancy reserved for a married couple. When one spouse dies, the title automatically remains with the surviving spouse.
For the OP, Tenants in Common appears to be the most logical choice...although buying real estate with a girl friend may not be a logical choice to begin with. It would be best to spell out on the Deed that the ownership interest is 50/50--and to understand the complications which may occur through such combined ownership. Perhaps a "pre-purchase" agreement--much like a prenuptial agreement--could be worked out to lessen potential complications should the relationship go sour. Consulting with an experienced real estate attorney now could save you money, and avoid headaches, in the long run.
EDIT: If you are a co-borrower, you will likely be 100% responsible for paying back the loan if your girlfriend is ever unable or unwilling to pay her share.
Last edited by jackmichigan; 03-14-2015 at 09:41 AM..
but if you must, re-read JackMichigan's post. Since the realtor advising you both is the mother of your girlfriend, I suggest you seek the services of an attorney to protect your interests - as previously advised. Be very careful entering into this situation as you might wind up being held liable for all the expenses with little to no ownership benefits.
Personally, I'd set up a trust to own the property and spell out the rights and responsibilities of each of the partners in the trust document.
You are obviously asking for a reason. Maybe you have a good job and your girlfriend doesn't. Or you have good credit and your girlfriend doesn't.
I'd actually contact the title company...perhaps the person the mom is speaking with there...or the attorney or whoever is doing the settlement. And nicely see what the mom had told them about how you are taking title. Hopefully, you have read very very thoroughly anything you already signed. Don't sign anything else. But if the whoever you speak with gives you some info on anything mom may have arranged....then walk away from it and spread the word about her. You can ask the title company/settlement company for verification of anything they tell you. Stop by and get it if they are local.
Then spread the word to the local board of realtors and the state board/state attorney's office.
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