|
Posted by Elle on June 20, 2007, 7:08 pm
>
>>Gal B does not want a mortgage. She prefers to pay cash
>>for
>>her "share" of owning the house.
>
> Unless Guy A has enough money to pay off his half, there
> will still be a
> mortgage on the house and Gal B will be responsible for if
> she becomes an owner.
Oh dear. What you say makes sense, and this now is indeed a
concern. Or maybe it's a "dealbreaker."
> Is there a due on sale clause in the mortgage? If so, it
> might get triggered by
> a sale of a part interest. Presumably they want to get
> the house in both their
> names as joint tenants with right of survivorship. They
> probably also want
> wills that give each other the rights to house and
> contents.
>
> They might also want a partnership agreement specifying
> how they would handle a
> break up. Hmmm. I think I'd want a lawyer involved.
Yes, I think an attorney one way or another is going to have
to get involved in any "joint" home purchase, for the peace
of mind of both A and B.
Understood about survivorship etc.
I guess it's a vexing situation since (1) the two will not
marry and so are not a legal "partnership" in this sense;
(2) the two have different goals for their money. For Guy A,
a mortgage makes some sense, because he does not have the
cash and can refinance at a low interest rate. Gal B (me, in
early retirement, so no job income a bank can examine, and
so banks do not like folks like me for mortgages?) probably
would not qualify for a mortgage, or if she did, it would
not necessarily be at a super low interest rate. Plus the
transaction fees of a mortgage are money down the drain to
Gal B.
I suppose Gal B could still consider obtaining a mortgage as
an investment, leaving the money she would have used to buy
half the house in stocks and bonds. Or Guy A might be
ultimately convinced to pay down the mortgage, using Gal B's
half and contributing the other half himself.
Thanks for the input, Douglas and Rick. I spoke to another
on this as well, and all the discussion is clarifying my
thoughts. There is no rush, but Guy A and Gal B are
considering some what-ifs. They want to go into anything
with eyes wide open and so make this or any other
arrangement work as well as it can.
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap