Posted on: 15th Jun, 2009 09:24 am
on dec. 2, 2003 a special warranty deed was made to convey ownership of the property (land and house) by me (grantor and successor trustee) to grantees (myself, and my brother) as joint owners.
for the past 6 years (and years before) my brother has never lived in the house, and could not afford to pay the real estate taxes. i have been paying all of the real estate taxes, and this year i'm unable to make the payment.
i looked at a home equity line of credit (heloc) and it was ideal for my situation. it is very difficult to find another job with the current job and economic climate, and i won't be able to pay the real estate taxes on time this year. this will result in the house being auctioned off and i will become homeless.
i visited a couple of local banks, in regards to a heloc. i mentioned that my brother was joint owner and gave them his information. each bank said that my income and credit was sufficient, but that his was not. and so my applications were turned down.
after reading some posts here, i assume that the best course of action is to have him fill out a quit claim deed.
what i really need to know is if this would in fact remove my brother from any consideration when i apply for a heloc? the house has no mortgage or debt associated with it (other than current real estate tax for this year).
for the past 6 years (and years before) my brother has never lived in the house, and could not afford to pay the real estate taxes. i have been paying all of the real estate taxes, and this year i'm unable to make the payment.
i looked at a home equity line of credit (heloc) and it was ideal for my situation. it is very difficult to find another job with the current job and economic climate, and i won't be able to pay the real estate taxes on time this year. this will result in the house being auctioned off and i will become homeless.
i visited a couple of local banks, in regards to a heloc. i mentioned that my brother was joint owner and gave them his information. each bank said that my income and credit was sufficient, but that his was not. and so my applications were turned down.
after reading some posts here, i assume that the best course of action is to have him fill out a quit claim deed.
what i really need to know is if this would in fact remove my brother from any consideration when i apply for a heloc? the house has no mortgage or debt associated with it (other than current real estate tax for this year).
Hi There,
I'm not an expert but why not pursue the loan in your name based on your credit, only?
Hope this helps.
I'm not an expert but why not pursue the loan in your name based on your credit, only?
Hope this helps.
Thanks for the reply.
I'm guessing that the bank sees the house as an asset I do not own and therefore cannot sign over as collateral for a loan. Should I be unable to pay the loan, they would be unable to sell it since my brother could probably contest the bank's claim on the house and refuse to sell it. Which means time and court fees for the bank.
The only way the two banks I visited would agree to this, was if the loan was made out to both my brother and me, since the house is owned by both of us.
Does this sound questionable to anyone?
I'm guessing that the bank sees the house as an asset I do not own and therefore cannot sign over as collateral for a loan. Should I be unable to pay the loan, they would be unable to sell it since my brother could probably contest the bank's claim on the house and refuse to sell it. Which means time and court fees for the bank.
The only way the two banks I visited would agree to this, was if the loan was made out to both my brother and me, since the house is owned by both of us.
Does this sound questionable to anyone?
Unfortunately, the banks are trying to protect themselves against default. Your brother would have to agree to sign the Quit Claim Deed, which would mean that he is relinquishing his rights/claims to the property. The Quit Claim Deed would have to be properly executed in accordance with the laws in your state. The laws differ among states about the number of witnesses required and who would be prohibited from witnessing so definitely consult an attorney for assistance if needed. Make sure the deed is filed and recorded at the courts. Your brother could later be added back to the deed of the property through another Quit Claim Deed.
Good luck with your loan.
Good luck with your loan.