Unilateral Opt Out: When Co-Owners Willingly Rescind
Co-Owners Unilaterally Rescind Willingly
1. Homeowner A 🙂 + Homeowner B 😢are co-borrowers on the mortgage.
2. Homeowner B 😢decides to opt out.
3. Homeowner A 🙂is notified, and must acknowledge Homeowner B’s 😢decision to opt out, whether Homeowner A 🙂agrees or not. Homeowner B 😢must pay the closing costs for new co-owner, which is approximately 3% of the loan value.
4. Cher’s system is notified, priority icon is presented for co-bo users. Homeowner B 😢 is still liable until a new co-owner is found. 🛑What if a new co-owner cannot be found?
5. Homeowner C 😎is found through co-bo matching process. Homeowner C 😎accepts pairing request.
Follow same process as existing homeowner.
6. ( Homeowner B 😢⇄ Homeowner C 😎) switch places on the mortgage, and title is paid by Homeowner B 😢. Homeowner A 🙂+ Homeowner C 😎are now co-borrowers on the mortgage.
7. Homeowner A 🙂 + Homeowner B 😢opt for cash out refinancing. ( Homeowner B 😢⇄ Homeowner C 😎) Homeowner C 😎contributes 15% of the newly appraised home value to Homeowner B 😢. Homeowner A 🙂+ Homeowner C 😎are now co-borrowers on the mortgage.
Two options of either both parties Homeowner A 🙂 and Homeowner B 😢do a cash out refinance or only Homeowner B 😢does and is paid directly from Homeowner C 😎.
8. Assume both Homeowner A 🙂 and Homeowner B 😢do a cash out refinance.
Assume Homeowner A 🙂 keeps their side, not doing a cash out refinance. Homeowner B 😢gets paid out from Homeowner C 😎 as a contingency to being on title. All costs paid to issue new close of a loan by Homeowner B 😢.
9. Homeowner C 😎 pays 15% down to Homeowner B 😢direct after Homeowner B 😢 pays for all closing costs.
Homeowner A 🙂+ Homeowner C 😎are now equally vested on title.
10. Homeowner A 🙂withdraws down to 70% LTV and bank provides the cash.
11. Both Homeowner A 🙂+ Homeowner C 😎are now equally vested.