Posted on: 01st May, 2007 03:53 pm
my boyfriend and i bought a house and we are both on the title; however he is the primary borrower. we have since broken up and he is allowing me to keep the house, but i would feel better about getting his name off of the title through a quit claim deed. i've heard that if the bank finds out that a deed has been signed, then it's a red flag and they could foreclose on my house. is this true despite the fact that monthly payments are made on time?
Lindsay, if you can get the mortgage refinanced in your name at the time quit claim deed is made then there will not be any problem, and no foreclosure.
"My boyfriend and I bought a house and we are both on the title; however he is the primary borrower. We have since broken up and he is allowing me to keep the house, but I would feel better about getting his name off of the title through a Quit Claim Deed. I've heard that if the bank finds out that a Deed has been signed, then it's a red flag and they could foreclose on my house. Is this true despite the fact that monthly payments are made on time?"
Yeah, you need to inform the lender about the title transfer, and if you can get the mortgage refinanced in your name then there will not be any problem.
As the mortgage is current, lender will not have any problem if you can qualify as per his requirements.
Yeah, you need to inform the lender about the title transfer, and if you can get the mortgage refinanced in your name then there will not be any problem.
As the mortgage is current, lender will not have any problem if you can qualify as per his requirements.
Actually the lender will not foreclose per se but they may call the note due.....if you are not able to meet the terms of them calling the note due ie a refi then they may opt to foreclose.
Hi Lindsay,
"We have since broken up and he is allowing me to keep the house, but I would feel better about getting his name off of the title through a Quit Claim Deed."
That would be the most reasonable thing to do as you have now separated. It will secure your right over the house in case in future your boyfriend changes his mind and thinks about getting back the ownership. If your income, credit profile, dti and other things like job status are good then you should be able to get the mortgage refinanced in your own name.
"I've heard that if the bank finds out that a Deed has been signed, then it's a red flag and they could foreclose on my house. Is this true despite the fact that monthly payments are made on time?"
Don't let the bank find out the title ownership has changed, rather before the quit claim deed is to be made you get in touch with them and tell them all about it and ask if you could qualify to get the mortgage refinanced in your own name.
David
"We have since broken up and he is allowing me to keep the house, but I would feel better about getting his name off of the title through a Quit Claim Deed."
That would be the most reasonable thing to do as you have now separated. It will secure your right over the house in case in future your boyfriend changes his mind and thinks about getting back the ownership. If your income, credit profile, dti and other things like job status are good then you should be able to get the mortgage refinanced in your own name.
"I've heard that if the bank finds out that a Deed has been signed, then it's a red flag and they could foreclose on my house. Is this true despite the fact that monthly payments are made on time?"
Don't let the bank find out the title ownership has changed, rather before the quit claim deed is to be made you get in touch with them and tell them all about it and ask if you could qualify to get the mortgage refinanced in your own name.
David
Hi Lindsay,
Your boyfriend may be the primary borrower but the bank cannot foreclose if the payments are being made on time. The bank may be a bit concerned if it has to allow you to have your boyfriend quitclaim the property. This is because the bank may not be aware of your current financial situation.
In case your boyfriend stops making payments, and the bank fails to trace him, then either it has to rely on you for the full payment or foreclose and sell the property. So, the bank has to make sure that you are creditworthy enough to manage the loan if required. That is why, when you inform the bank about the transfer of title, it may be a bit skeptical of allowing it. And, it has every right to say no to the transfer as the loan is yet to be paid off.
However, if you inform the bank which finds that you have good credit, then it may not foreclose. But you need to talk to the concerned officials in the bank.
Thanks.
Your boyfriend may be the primary borrower but the bank cannot foreclose if the payments are being made on time. The bank may be a bit concerned if it has to allow you to have your boyfriend quitclaim the property. This is because the bank may not be aware of your current financial situation.
In case your boyfriend stops making payments, and the bank fails to trace him, then either it has to rely on you for the full payment or foreclose and sell the property. So, the bank has to make sure that you are creditworthy enough to manage the loan if required. That is why, when you inform the bank about the transfer of title, it may be a bit skeptical of allowing it. And, it has every right to say no to the transfer as the loan is yet to be paid off.
However, if you inform the bank which finds that you have good credit, then it may not foreclose. But you need to talk to the concerned officials in the bank.
Thanks.