Posted on: 15th Jun, 2010 02:53 pm
My son owns a condo that I have paid the mortgage, taxes for ever since the loan went on, 2003. He now wants to buy a house in another state and can't qualify because of the condo. If he quit claims the property to me and I continue to make the payments, will it show he has ownership or will his new lender see that he if off title and has no rights? Do lenders research to see what loans are outstanding on his credit report and count that against him even if we quit claim it to me? I don't believe I could qualify for a new loan all on my own even though all the payments and taxes are current.
if your son quit claims the property over to you. it will show your name on the deed, but it will still show your son's name on the note or the payments with the credit bureau. the best this to do is to try to have him short sell , outright sell it to you, or refinance it into your name. then his name will be off the note which will free him up to seek other loans. other than that, your son's name will keep appearing on the note with will affect his ability to get more loans. i blog about these thing often. i hope this helps, my site link is below.
Hi ganndoss,
Your son can sign a quit claim deed and transfer the property to you. Thus he won't be considered as the owner of the property any more. However, if his name is on the mortgage docs, then he will still be liable for the mortgage dues. You will have to refinance the mortgage in your name in order to release your son from the liability of paying off the dues. After this, I don't think your son will face any issues in buying a property of his own.
Thanks
Your son can sign a quit claim deed and transfer the property to you. Thus he won't be considered as the owner of the property any more. However, if his name is on the mortgage docs, then he will still be liable for the mortgage dues. You will have to refinance the mortgage in your name in order to release your son from the liability of paying off the dues. After this, I don't think your son will face any issues in buying a property of his own.
Thanks