What Happens If My Family’s Earnings Decline After Getting a Mortgage?

Question:

Years and years back, my parents forced me to be on their mortgage, but they said I can come off any time that I want to buy a house. So now, I’m ready to buy my own house, but they will not let me, because they’re getting divorced. And based on a court order, my father needs to come off the mortgage, which would leave just my mother and I on the mortgage. She makes minimum wage. I make better money.

She claims that after my father is off the mortgage, she will take me off the mortgage, but is that even possible? Will the bank just decline her a loan due to her poor income? Will the bank let me leave, having declined her?

Answer:

I am sorry you’re going through that. Usually, in divorce situations, the parties are left with two options: one party has to refinance to get the other party off the loan OR the home has to be sold.

It sounds like your mother’s going to have trouble doing the refinance without your income and/or another co-signer, so what’s likely to happen is she would have to sell the home, at which time you would be able to buy your own home.

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