Posted on: 23rd Aug, 2009 07:27 pm
we have financed our daughter's first home through a mortgage. is there any way we can ensure that this loan will appear on our daughter's credit history? The laon has a note and a deed of trust drawn up by a real estate attorney and recorded by the county clerk's office. Impounds for insurance and taxes are included in her monthly payment and are held by us and dispersed as required. Her payments are on time. We have declared the income as income on our tax return and our daughter deducts the mortgage intrest on her return according to the rules of IRS
Hi myles,
If the mortgage is in your name, then it would not show up in her credit report. However, if the mortgage is not in her name, she will not be able to deduct the mortgage interest on her tax returns.
Thanks
If the mortgage is in your name, then it would not show up in her credit report. However, if the mortgage is not in her name, she will not be able to deduct the mortgage interest on her tax returns.
Thanks
james you misconstrued the original post. myles is actually the mortgage holder, not the borrower.
myles, credit agencies are not set up to deal with average citizens who act as lenders, as you have. what you will be able to do is to counsel your daughter, as i'm sure you already have, to make sure she protects her credit standing on all debt obligations. you can also keep copious records of all the payments due and paid by her to you, so that when it becomes necessary for her, at some time in the future, to supply evidence that her mortgage payments were timely, she can provide that documentation.
the credit agencies, i'm afraid, won't accept documentation from you. one other thing she can be sure to do is to keep a wonderful record of her payments on her own, preferably paying you by check so as to have documentation of those payments.
myles, credit agencies are not set up to deal with average citizens who act as lenders, as you have. what you will be able to do is to counsel your daughter, as i'm sure you already have, to make sure she protects her credit standing on all debt obligations. you can also keep copious records of all the payments due and paid by her to you, so that when it becomes necessary for her, at some time in the future, to supply evidence that her mortgage payments were timely, she can provide that documentation.
the credit agencies, i'm afraid, won't accept documentation from you. one other thing she can be sure to do is to keep a wonderful record of her payments on her own, preferably paying you by check so as to have documentation of those payments.
One option,
make a trust and give a loan to your daughter as a mortgage (just for records sake) and then all the payments should be paid in the trust's account so that she will get a receipt of mortgage loan payment and you will also get money as well as a credit history of her transaction will be created.
I hope you got my point if not feel free to correct me.
make a trust and give a loan to your daughter as a mortgage (just for records sake) and then all the payments should be paid in the trust's account so that she will get a receipt of mortgage loan payment and you will also get money as well as a credit history of her transaction will be created.
I hope you got my point if not feel free to correct me.
that's a thought, fred...not bad