There are two peices of paper: the mortgage/note and the title (also known as the deed). The people on the mortgage/note are responsible for the payments. The person on the title owns the house.
The only way to get yourself off the mortgage/note is to refinance.
The only way to get yourself off the title is to deed your interest to someone else.
What you do not want to do is be on the mortgage/note and not on the title. You have full responsiblity for the mortgage/note but you do not even own the house.
I assume that your relative had crappy credit so you either so-signed on the mortgage/note or you took out the mortgage/note alone. Then you put yourself and your relative on the title? Is this correct?
Who is on the mortgage?
Who is on the title/deed?
If you are on the mortgage/note as a signor, it will be on your credit report. If the payments are not made, then the late payments will be on your credit report. If you give up title to the property, but remain on the mortgage/note, then you are giving up all control of your credit to your relative - who I am assuming has crappy credit.
thank you so much for your help!
You are correct, my relative has really crappy credit and they approached me to help out w/ my good credit. So, I signed the papers and the loan will be under my name alone! I am on the mortgage/note and title/deed. Now, what the realitor said, was that i could sign a quit claim after everything had been approved...then, have it the house transferred to my relative. I actually will not be making the mortgage pmt. My relative will be making the pmts. Now, the realitor said that even though I sign the quit claim, I would still be eligible for the tax break and equity would be accrued under my name. Is this true??
You do what you want, but you are heading down a path that I have personally seen dozens of times - the relative has a set back, he falls behind and can not make up the back payments, the house goes into foreclosure, your credit takes the hit, and you loss lots of sleep.
If you take your name off the title, then you are giving up all control of the property. You are responsible for the debt, but you have no control over the collateral. Not a good position.
Maybe someone here will have some ideas of what you can do to not be a landlord but also not to give up all control.
You could consider keeping yourself alone on mortgage and title and making them tenants. You would have to buy non-owner occupied insurance. Give them three years to build up their credit and then refinance at which time you will deed them the property and you will be totally off the mortgage and title. While they are tenants, they make the payment to you so you would see if they start falling behind. Their rent could be the total costs of the property and they could be responsible for all repairs so it costs you nothing.
Its for real and fresh. should be used this summer by professionals, and next year for the consumer. could be to the benefit, or to the worse depending on the individual.
for example sometimes a collection will report on only equifax lower it by 20 point, but not on any other. old systems better
Was going to post a link to an article..but i guess drandom beat me to it...here it is anwyay in case theyre not the same info...havent read the other one yet..
I have read good things about National City.
You can get the application on the link below (also on the thread info about the card):
http://creditboards.com/forums/index.php?showtopic=147198
In simple terms ....
There are two peices of paper: the mortgage/note and the title (also known as the deed). The people on the mortgage/note are responsible for the payments. The person on the title owns the house.
The only way to get yourself off the mortgage/note is to refinance.
The only way to get yourself off the title is to deed your interest to someone else.
What you do not want to do is be on the mortgage/note and not on the title. You have full responsiblity for the mortgage/note but you do not even own the house.
I assume that your relative had crappy credit so you either so-signed on the mortgage/note or you took out the mortgage/note alone. Then you put yourself and your relative on the title? Is this correct?
Who is on the mortgage?
Who is on the title/deed?
If you are on the mortgage/note as a signor, it will be on your credit report. If the payments are not made, then the late payments will be on your credit report. If you give up title to the property, but remain on the mortgage/note, then you are giving up all control of your credit to your relative - who I am assuming has crappy credit.
thank you so much for your help!
You are correct, my relative has really crappy credit and they approached me to help out w/ my good credit. So, I signed the papers and the loan will be under my name alone! I am on the mortgage/note and title/deed. Now, what the realitor said, was that i could sign a quit claim after everything had been approved...then, have it the house transferred to my relative. I actually will not be making the mortgage pmt. My relative will be making the pmts. Now, the realitor said that even though I sign the quit claim, I would still be eligible for the tax break and equity would be accrued under my name. Is this true??
You do what you want, but you are heading down a path that I have personally seen dozens of times - the relative has a set back, he falls behind and can not make up the back payments, the house goes into foreclosure, your credit takes the hit, and you loss lots of sleep.
If you take your name off the title, then you are giving up all control of the property. You are responsible for the debt, but you have no control over the collateral. Not a good position.
Maybe someone here will have some ideas of what you can do to not be a landlord but also not to give up all control.
You could consider keeping yourself alone on mortgage and title and making them tenants. You would have to buy non-owner occupied insurance. Give them three years to build up their credit and then refinance at which time you will deed them the property and you will be totally off the mortgage and title. While they are tenants, they make the payment to you so you would see if they start falling behind. Their rent could be the total costs of the property and they could be responsible for all repairs so it costs you nothing.
Currently, are you on the title alone or are you on with your relative?
Anyone heard anything about this ?
[addsig]
I asked a friend about this, he runs his own credit repair company..he hasnt heard anything about that ..so it might be just a rumor..
Its for real and fresh. should be used this summer by professionals, and next year for the consumer. could be to the benefit, or to the worse depending on the individual.
for example sometimes a collection will report on only equifax lower it by 20 point, but not on any other. old systems better
Yes, it is true. Here is the article:
Credit bureaus agree to uniform scoring system
http://www.myrtlebeachonline.com/mld/myrtlebeachonline/14102203.htm[ Edited by d_random on Date 03/15/2006 ]
Was going to post a link to an article..but i guess drandom beat me to it...here it is anwyay in case theyre not the same info...havent read the other one yet..
http://biz.yahoo.com/ap/060314/credit_scores_yourmoney.html?.v=4
Thanks Sham718-
The more info the better! My last link was busted, so there is another one ^above^. [ Edited by d_random on Date 03/15/2006 ]