Posted on: 07th Mar, 2007 06:46 pm
i was asked by my daughter's mortgage company that she got a mortgage through to co-sign for her so she could purchase her home. my name will only have to stay on the the loan for 90 days,(i even had them give me a paper stating this) then she could refinance after the 90 days and take my name completely off of everything. well, when the 2 months came around and i ask them to set up a settlement , and giving them 1 whole month to get any neccesary papers together.that is when they told me that my daughter's credit score dropped and no mortgage company will finance her and i could not take my name off the loan/or house. it has now been 9 months and nothing has been done. they tell me when i call to refinance that if i do this my daughter will get a higher interest rate. i love my daughter to death, but that is not my problem. i'm really feeling a certain because i'm stuck myself now. can i do quit claim is a situation like this? i have worked to hard and to long to get what i have today and i truly don't need my credit messed up or not be able to get what i want, because i have someone telling me i'm financially obligated. i need help please. thank-you
hi bharris,
welcome to the forums.
you are indeed in a tough situation but then the company should have allowed you to take your name off the loan. this is because there has been a written contract signed between you and the company. so, even if your daughter's credit score drops down, you should not be affected.
however, i don't understand one thing. how did your daughter's credit score become low? i guess she has been making the payments in time.
anyway, if the company is insisting to offer a higher interest rate, then you may request them to allow you for a novation - a legal process by which you will be able to transfer the loan entirely in your daughter's name. then you will be able to take your name off the loan.
thanks,
sara
welcome to the forums.
you are indeed in a tough situation but then the company should have allowed you to take your name off the loan. this is because there has been a written contract signed between you and the company. so, even if your daughter's credit score drops down, you should not be affected.
however, i don't understand one thing. how did your daughter's credit score become low? i guess she has been making the payments in time.
anyway, if the company is insisting to offer a higher interest rate, then you may request them to allow you for a novation - a legal process by which you will be able to transfer the loan entirely in your daughter's name. then you will be able to take your name off the loan.
thanks,
sara
Hi Bharris,
A quitclaim will not help you to get your name off the loan as cosigner. By signing on this kind of deed, one individual can only transfer his property to another. So, this will in no way help you out. Even novation may not work out because lenders often do not agree to do it. Moreover, your daughter has bad credit, so the lender may not find her reliable enough to make payments.
There is one way out. You can approach some other lender in order to refinance your loan. Try contacting few more lenders so that you can choose from a variety of options.
Feel free to get further suggestions.
Thanks,
James.
A quitclaim will not help you to get your name off the loan as cosigner. By signing on this kind of deed, one individual can only transfer his property to another. So, this will in no way help you out. Even novation may not work out because lenders often do not agree to do it. Moreover, your daughter has bad credit, so the lender may not find her reliable enough to make payments.
There is one way out. You can approach some other lender in order to refinance your loan. Try contacting few more lenders so that you can choose from a variety of options.
Feel free to get further suggestions.
Thanks,
James.
jameshogg is absolutely correct in telling you that the LAST lender I would feel comfortable with now is the one that assisted in getting you in this mess. Have your daughter talk to another lender to see if what she is being told is true.
To try and answer both Sara and James. Her credit score went down because they gave her 2 mortgages and never sent her a payment statement/or where the 2nd mortgage had to go to. She thought just as I did that both payments were in one. So therfore, by the time she was told that she wasn't making her payment shw was then 60 days in the rear. Even with the 1st mortgage she never even received a payment book. This went on for the first 2 or 3 months I know. Around the second or third month, she call me and told me she didn't even get a statement. I told her to send in a check with her account number on it anyway, so they can't say it's late. I to this day don't know if he received a payment book yet. My main and only concern is "DID YOU MAKE YOUR MORTGAGE PAYMENT"?
At this point that is my main and ONLY concern. If I remember correctly, I think they may have told her that she can't refinance thru another Mortgage Company for two years. I'll have to look through the papers again. With no lie, I was so numb and upset at that table I only remember hearing bits and pieces. Thank you all for this information.
Beverly
At this point that is my main and ONLY concern. If I remember correctly, I think they may have told her that she can't refinance thru another Mortgage Company for two years. I'll have to look through the papers again. With no lie, I was so numb and upset at that table I only remember hearing bits and pieces. Thank you all for this information.
Beverly
hi bharris,
you mean to say that she did not make the payments on the second mortgage as she did not know where to send them? may be it is the first time for her, so she did not realize that she should have called up the company and enquired about it. that would have prevented her credit from going down at least.
i think your daughter should request the company to suspend the payments for some time onwards so that she can arrange for the payments that she should have made by now. by that time if she can accumulate the funds, it will be easier for her to get current on the loan.
now, you have mentioned that the company may not allow her to refinance for the next 2 years. i think you should look through the papers to find out if they have mentioned such a thing; otherwise they should allow your daughter to refinance with a different lender.
please don't be so upset. go through the papers and talk to the lender. update our community on what the company has suggested. we shall try to come up with more suggestions on what can be done further.
thanks,
caron.
you mean to say that she did not make the payments on the second mortgage as she did not know where to send them? may be it is the first time for her, so she did not realize that she should have called up the company and enquired about it. that would have prevented her credit from going down at least.
i think your daughter should request the company to suspend the payments for some time onwards so that she can arrange for the payments that she should have made by now. by that time if she can accumulate the funds, it will be easier for her to get current on the loan.
now, you have mentioned that the company may not allow her to refinance for the next 2 years. i think you should look through the papers to find out if they have mentioned such a thing; otherwise they should allow your daughter to refinance with a different lender.
please don't be so upset. go through the papers and talk to the lender. update our community on what the company has suggested. we shall try to come up with more suggestions on what can be done further.
thanks,
caron.
Would I be able to purchase a home in my daughters name,I make the payments until she completes her college education? She will be leaving to go to another state for 1.5 years and I am willing to make the payments and continue to make the payments until she returns. She wants purchase a home to secure a home for her daughter.
Hi Betty white
You can definitely buy a property in your daughter's name. However, the lenders will always want that the mortgage remains in the name of the owner of the property. In that case, your daughter will have to sign the mortgage docs. Also her credit score and income history will be checked in this case. If the lender is satisfied, then only he will give a loan.
Thanks.
You can definitely buy a property in your daughter's name. However, the lenders will always want that the mortgage remains in the name of the owner of the property. In that case, your daughter will have to sign the mortgage docs. Also her credit score and income history will be checked in this case. If the lender is satisfied, then only he will give a loan.
Thanks.
