Expert: Diann Tonnesen - 8/27/2007

Question
Hello,

Let me first start off by explaining my situation. My fiance' and I purchased our first home in December 2006. We both are first time owners and got a loan for interest only for the first 5 years. It has only been almost 9 months, but things seem to not be working out for me. We both have been paying half for everything that has to do with the house, including the mortgage. My questions is, what can I do to get out of the contract for this home? Things seem to be getting worst as time goes by and I don't want to continue living in that situation. What options do I have to be able to move before we sell the house? I know this is something I should have thought out before the purchase, but like all women, we always hope for the best. I want to be able to know what I can do, in order to avoid any serious issues in the long run. Thank you for your attention and I hope to hear from you soon. Thanks again.

Answer
Dear Erica,

Unfortunately you cannot get out of the contract on this home if your name is on the mortgage. (If you are not on the mortgage even if you are on the title, that is another issue entirely.)

Your options are to sell the house or have your fiancee buy you out and refinance it in his name only. You can always move any time before selling the home, but you are still responsible for the expenses on it.

Actually each of you is entirely responsible for the mortgage if you are both on it. If one party cannot pay, the lender will go after the other for the whole amount.

If you are truly unhappy, probably the best course of action is to put the home on the market at a low price and sell it as quickly as possible. Sometimes we just have to take a step backwards to go on in life. You have my true sympathy, Erica, and I hope that you are able to resolve these issues as quickly as possible so that you can continue on to more happy things!!