Joint Mortgage

Discussion in Mortgage & House Payments started by remnant • Nov 3, 2016.

  1. remnant

    remnantActive Member

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    Wouldn't it be a good idea for two people or more to sign up for a mortgage plan? The idea is to spread the payments over a longer period of time but less amount which would impact less on your pockets. Whats your views on this?
     
  2. Jamille

    JamilleActive Member

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    When you sign up for a mortgage plan, a real property is involved. That asset is used as a security for the loan. You take out a mortgage to buy a real property and that property is used to secure the loan. You can also take out a mortgage by using your existing real property as a security for the loan.

    If I'm going to buy a new house and lot through a mortgage plan, would I be willing to share the house and lot with two or more people to get them to share in the amortization? Would other people also share in the amortization if I don't give them something in return like share in the ownership of the house and lot?

    If I own a lot and I want to take out a mortgage on this lot, would I be willing to share the proceeds of the loan with other people so I can get them to share in the amortization as well? Would it be fine with me if I bear all the risk with my property while their share in the loan proceeds are unsecured? What is my guarantee that these people will pay their amortization diligently?

    These are basically the issues that you need to address when you think about sharing a mortgage plan.
     
  3. ptahm22

    ptahm22Active Member

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    That's the truth @Jamille@Jamille but this mortgage can be shared with your spouse if you agree on it. If both of you have an income you can share the cost. Also, you can have a joint project where both of you will benefit from the proceeds of the loan. If this exceptions aren't present you should consider taking the mortgage individually.
     
    #3Dec 29, 2016
    Last edited by a moderator: Jan 12, 2017
  4. efrain silva

    efrain silvaMember

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    My parents did this once, and so did my brother and his wife. From what I hear, it is not as simple as it seems or sounds. There is always more to it. In the end, both couples ended that and closed the chapter for good. No one ever speaks of it anymore. It seems that sometimes it works, and sometimes it simply is not meant to be...
     
  5. Jamille

    JamilleActive Member

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    There are legal ramifications to sharing a mortgage with your spouse, relatives, or even friends as this involves real property ownership that can be passed on to surviving heirs in case one of the spouses or co-borrower dies. Many working spouses are forced to enter into co-mortgaging agreement to obtain a higher loan amount than what would have been allowed if only one spouse had applied. I would assume that since they are married, the amortization would come from a unified pocket whether or not they sign as co-mortgagors. On the other hand, there are advantages to not having the spouse as co-borrower. When the borrower-spouse passes on, the non-borrower spouse will inherit the property without paying the balance of the mortgage as this is often covered by a mortgage redemption insurance. If they are co-borrowers, however, the debt is not extinguished but passes on to the co-borrower, the surviving spouse.
     
  6. Alexandoy

    AlexandoyWell-Known Member

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    I have 2 friends who did just that – they took out a loan from a bank to buy a house which title was under their names, the 2 of them equally own the property. Obviously, they shared in the installments and there was no problem. However, when one of them died, the family of the deceased sued the living partner because they want to divide the property, maybe sell the property. In short, a problem arose and the living partner had regretted doing the joint mortgage. He said that they should have divided the property when his partner was still alive to avoid complications. Now the living partner is still in the house but he is hounded by the relatives of the deceased.
     
  7. Nakitakona

    NakitakonaActive Member

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    Real estate property like land, residential lot or house. If this property is owned by a couple, it is considered as conjugal property. Once it is offered as a collateral against a loan or a mortgage plan as you have said, the signatories should involve the husband and the wife. But when the property is only owned by either a husband or a wife, there is no need for the spouse to sign a joint mortgage loan.