Joint Mortgages: What to Do When the Co-Borrower Stops Paying

A joint mortgage can be used to secure a mortgage when a traditional mortgage is not an option. If you use a co-borrower to buy a house with you, you will stand a much better chance of being approved. You get to combine your credit files and your income together in order to get the house. While it is attractive to you on the front end, it can cause major problems down the road. If the co-borrower stops paying their part of the mortgage, the situation can immediately start to hurt you. Here are a few things that you can try if your co-borrower stops paying their part of the mortgage.

Keep Making the Payment

This could be the toughest thing for you to do financially, but the easiest thing to do as far as paperwork is concerned. Let's say for example that your spouse decides to get up and leave one morning. They take off to a far away land and leave you with the house. They have made no indication that they want anything other than being out of the relationship. Even though it will probably be more than you would like to spend on the house payment, you could simply keep making the payment on your own. If the bank keeps receiving their payment every month, they really do not care where the money is coming from. Therefore, it will not affect anyone as long as you keep making their part of the payment for them.

Buy Them Out

Another option that you have is to buy them out of the mortgage. If they have been paying on the mortgage for a number of years, they have helped you pay down the principal of the loan. This means that they have just as much of a right to that equity as you do. You can give them their share of the equity in return for their rights to the house. In order to get their rights to the property, you will have to have them sign a quitclaim deed. This will quickly eliminate any rights they have to the property.

Sell the Property

While it might not be the most desirable option, you can always try to sell the house. When you entered into the initial agreement, you were under the assumption that they would be making half of the mortgage payment for you. If they are no longer doing this, you may not be able to afford the mortgage any longer. Even if you can hang on for a few months with your savings, you may not be able to do it for an extended period of time. This means that you may have to sell the house. You can end the agreement between you and save your credit at the same time. This will allow you to find a more economical choice for you housing needs. You can get something that is better suited for one person.