Posted on: 04th Jul, 2009 04:56 pm
Hello. I am curious if anyone knows any ideas about my situation. I currently own a business with a partner that is failiing and we are possibly in the market to possibly close it down. However since I still have a lease with the landlord I am afraid they may wnat to come after me. We are currently living in a place and tired of paying rent. I do work for a living and my job is stable and has been for years. My wife is currently a homemaker/student so thus she has no true income. My parents have agreed to help in anyway but their income is limited to about 2k - 3k a month. With the risk of me buying a home and having the landlord come after me we were told we might be able to just purchase the home and quitclaim it to my wife since I can afford the mortagage I would continue to pay that. So technically the home would be in my parents name and my wifes name. However then someone on the board also said that that might be considered fraudulent transfer. I am curious if anyone knows of a way I can make this work. I have no issue with putting it in my parents name but I would rather have my wife on there for security also. Any ideas? I was also thinking if we purchase the home could we put the home in my parents and my wifes name and leave me out (even in california since it is a community property state) and I could co-sign the loan , would my name have to be on the title for that? would that constitute a fraudulent transfer for not wanting to put my name ont he title for safety reasons?
Hi indnracn,
If you purchase the home in your name and then transfer it to your wife and your parents, the transfer might be seen as your attempt to avoid paying off your debts. Thus, it could be deemed as a fraudulent transfer. I think you can purchase the home in your wife and your parents name. If they have good credit, they can sign as primary borrowers and you can co-sign on the loan to help them qualify. This way, you can avoid putting your name on the title and protect your property, in case the landlord comes after you.
If you purchase the home in your name and then transfer it to your wife and your parents, the transfer might be seen as your attempt to avoid paying off your debts. Thus, it could be deemed as a fraudulent transfer. I think you can purchase the home in your wife and your parents name. If they have good credit, they can sign as primary borrowers and you can co-sign on the loan to help them qualify. This way, you can avoid putting your name on the title and protect your property, in case the landlord comes after you.
so co-signing a loan does not put me onto the title nor does it tie me to the property in any way?
i'm just curious then what is the purpose of the quit claim deed?
Hi indnracn,
A co-signer does not necessarily have to be on the title. When you co-sign, you are merely trying to help the original borrower qualify for the loan. As a co-signer you may not have an interest in the property. Quitclaim helps you transfer your interest in the property to someone else. If you buy the property in your name, you will have to quitclaim it to give up the ownership. Do you want to purchase the property in your name?
A co-signer does not necessarily have to be on the title. When you co-sign, you are merely trying to help the original borrower qualify for the loan. As a co-signer you may not have an interest in the property. Quitclaim helps you transfer your interest in the property to someone else. If you buy the property in your name, you will have to quitclaim it to give up the ownership. Do you want to purchase the property in your name?
I would rather not purchase in my name just for that simple liability with teh landlord and my failiing business. However since my wife is a homemaker/student she currently has no earning potential. I am trying to figure out with the current mortgage industry if any bank would give her a loan with me cosigning the loan or even being hte co borrower but not wanting to be on the title?