Home Co-ownership

[kap]

The scenario: A has been behind in payment due to the decrease in his income. A offers B to be either be the sole owner of of the property or a partner in the ownership. The loan will remain under A while B will be on the title. They are very good friends and very responsible people financially. Do tell the good, the bad and the ugly of this cooperation.

[Doc]

Let me Google that for you.

http://www.google.com/search?q=how+to+lo...over+money&btnG=Search&hl=en&sa=2

[GGD]

Is "B" the bank?

[davester]

1. The bank won't allow it.
2. There is no 2.

[space-time]

Until A or B has sex with C

[kap]

A and B are fictions names of real people. They are used to protect their innocence :biggrin: The property is still in good standing. That is why A wants to seal the deal before it gets to that point.

[decocritter]

Until somebody gets mad.......

[kap]

decocritter wrote:
Until somebody gets mad.......

Who would be the biggest loser?
A is willing to let B take the title; only wants to keep the loan under his name.

[Doc]

If B's credit is good and he's got the money, why not do it as a purchase of the home by B with the loan solely in B's name, followed by a lease of the premises to A with rent sufficient to cover B's loan payments, taxes and insurance?

Consult an attorney for the fine-points, but the lease agreement can be structured to mimic the effects of one of those other arrangements with rules for assigning the burden of maintenance and the results of improvements, automatically renewing on the same terms (or making amendments) and giving A the right of first refusal if B decides to sell the place.

[Black]

Isn't this basically what "owner financing" is?
If there's a term you want to google, that's it.
In terms of saving the friendship-- you have a lawyer come up with an agreement that spells out -everything- and leaves no room for subjectivity.