Posted on: 01st Apr, 2010 03:54 pm
My parents own a home outright. I've agreed to purchase half of the house by taking out a Mortgage. I will buy the house from them and will later add them on to the title with a quitclaim deed.
Their lawyer has recently brought up that my mortgage could require that my parents sign something saying they would be liable for my mortgage, before they go back on the title. I understand that should I default on the mortgage their part of the house would be at stake, but can they really be held responsible for my mortgage?????
Their lawyer has recently brought up that my mortgage could require that my parents sign something saying they would be liable for my mortgage, before they go back on the title. I understand that should I default on the mortgage their part of the house would be at stake, but can they really be held responsible for my mortgage?????
Hi lharv,
If your parents co-sign the mortgage, then they would be responsible for the mortgage. If you default on your loan payments, they would be liable for it and the lender will be able to come after them for the dues. If your parents have their name only on the property deed, then they won't be responsible for the mortgage.
Thanks
If your parents co-sign the mortgage, then they would be responsible for the mortgage. If you default on your loan payments, they would be liable for it and the lender will be able to come after them for the dues. If your parents have their name only on the property deed, then they won't be responsible for the mortgage.
Thanks