When There Are Two Names on the Mortgage, Who Owns the Home?

 In Blog, Real Estate Questions

When a couple lives together it can be confusing as to whose name should be on the mortgage. Maybe you want to split the mortgage to create equal ownership, but that might not always be the best route. Owning a home is a major investment so knowing the facts is extremely important. Let’s start to lay out some mortgage facts so that you and your partner can rest easier.

 

Title vs mortgage

The title is in relation to who owns rights to the property. A mortgage is an agreement to pay back a loan to lenders. Homeownership strictly falls under having your name on the title and not the mortgage. 

 

Not being named

If you’re not named on the mortgage or title then you are at a major disadvantage when it comes to homeownership. Legally speaking when this happens you have no ownership of the home. If you are taken to court at this point then you will have very little rights to any part of the property.  You might not be on the mortgage payments but be sure to be on the title of the home if you want any stake in ownership. 

 

Title of the home

Let’s say you decide not to have both names on the mortgage but are concerned about home ownership. Well, as mentioned before you have the option be on the title of the home which will grant you many rights legally. Doing this as you close is the best option if you want to avoid the headache of doing it later. Once your names are on the title then congratulations on both being homeowners!

 

However, if your name is not on the title and things go sour between you and your partner then you can end up technically homeless. Any money you put into the home would be gone and you’d lose any rights. Another sad example would be if your partner dies and they were the only one on the title then you can be in for a major legal headache. Save yourself the stress and get on the title. 

 

Name on mortgage

It may sound like a sweet deal to be on the title but not on any of the mortgages but that can end up sour too. When whoever stops paying the mortgage who do you think the lenders will be coming to? Yep, that you and they will take high notice if you’re close to foreclosure. 

 

What if you’re just making mortgage payments? Well, then you could be really prone to taking some damage. The owner of the title could end up selling half the home to someone you don’t know to leave you paying the mortgage for a homeowner you don’t know. Is that likely? No, but it can happen so why leave yourself vulnerable? 

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