Refinance with no equity?
My brother and I have lived in a house for three years and we have no equity because of the economy. My brother doesn't pay the mortgage, I pay it, but both our names are on the mortgage. He moved out about ten months ago, and now he wants his name to be taken off the mortgage. I'm not sure how to do this. At first I thought of refinancing, but I'm not sure whether now is a good time to refinance because we have no equity in the house. I guess I just want to know if a refinance can be done with no equity right now? by shanelin from Atlanta, Georgia. Aug 10th 2010
Brett Pehrson (brettpehrson)
#19 ranked lender in Utah - 228 contributions
Shane, it depends on what kind of mortgage you have. But, probably the best way is to contact your loan servicer and ask them about a "qualifying name delete assumption." This is something they'll do from time to time in divorce cases. If that doesn't work, contact me at http://www.homeloansinutah.com/forms/askAnExpert.html. I only do loans in Utah, but I'd be happy to answer your questions.
Akali Dennie (adennie)
#54 ranked lender in Florida - 196 contributions
You have two possibilities. First, we would need to find out if your loan is owned by Fannie Mae or Freddie Mac. If not, we would need to find out if you have an FHA loan. Please email me directly so we may begin. adennie@fmbranch.com. We are Direct Lenders and fund loans in all 50 states.
John Barbato (blueelephant)
#4 ranked lender in Delaware - 26 contributions
The type of loan you currently have will determine your available options. Making Home Affordable refinance would allow you to take advantage of lower rates, but only allows borrowers to be added to mortgage and not removed; this would require that Fannie Mae or Freddie Mac own your loan. How do you know you have no equity? You're best bet is to consult with a mortgage professional to review your specific situation.
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