real estate loans with break-ups

[judyllee]

My son and his girlfriend bought a house together and her parents insisted her name be on the house along with his, so they also put her name on the loan. Now 3 months later, they have broken up and we are wondering how to get her name off the house and loan. She has moved out and doesn't want it, so there won't be an issue there. The finance person that did his loan suggested he refinance. But that would cost him upwards of $4,000.00 for closing costs and he just bought it in the middle of August. So it seems silly to refinance at that high of a cost. Is it prudent to move on this quickly? Will she get more equity in the house if we do nothing? Not sure if we need to see a lawyer or listen to the finance person. I guess we are not sure how to proceed.
Thank you!

 

[Theresagail]

You will need to refinance it

 

[Duranie]

Call around for better fees on the refi. If he wants her off the loan, he needs to refi it otherwise her name remains on it and she remains partial owner. He should be able to add all the fees of the re-fi on to the backend of the loan with little out of pocket.