Posted on: 08th Apr, 2009 08:33 am
primary wants me to sign a quite claim. what are the implications of signing a quit claim, i am on title and am the co borrower for the loan.
balance on the loan is around 97,000.00. the primary is my mom, she pays on the loan with rent she receives from renting half the house. she has no other income. and no credit. she tells me that if I dont sign the quit claim she will let the house go into forclosure. that I only have two options, 1. sign the quit claim or 2. dont sign and my credit will be ruined as she will let the home go to forclosure.
what to do?
balance on the loan is around 97,000.00. the primary is my mom, she pays on the loan with rent she receives from renting half the house. she has no other income. and no credit. she tells me that if I dont sign the quit claim she will let the house go into forclosure. that I only have two options, 1. sign the quit claim or 2. dont sign and my credit will be ruined as she will let the home go to forclosure.
what to do?
hi signinnovations,
if you don't quitclaim, she will let the house go into foreclosure and this will ruin your credit. right? but is there a guarantee that she will not let the property go into foreclosure if you do quitclaim? because even if you quitclaim, as a coborrower you will still be responsible for the loan if she defaults. to remove your name from the loan, she has to refinance in her name which does not seem to be possible, given her income and credit score. a novation is also not a possibililty.
if you don't quitclaim, she will let the house go into foreclosure and this will ruin your credit. right? but is there a guarantee that she will not let the property go into foreclosure if you do quitclaim? because even if you quitclaim, as a coborrower you will still be responsible for the loan if she defaults. to remove your name from the loan, she has to refinance in her name which does not seem to be possible, given her income and credit score. a novation is also not a possibililty.
you made no mention of how willing and/or able you are to make payments on the mortgage. as a borrower, you are fully liable. as jenkin pointed out, whether or not you quit claim your interest in the property to your mom - she still can allow it to go to foreclosure. as a party to the deed and note, you'll be notified as well if the lender finds it necessary to bring suit. that would allow you to try to rectify the situation before the ultimate act of foreclosure.
thanks.
I really have no interest in the house. doing my own thing, I own land in another state and am moving there next year sometime. I could pay the mortgage payment if I had to. but I was put on deed in case my mom passed away, that way there would be no excess taxes due or any other thing the government can charge if I was not on the deed. my dad passed away a couple years ago and at that time the house was paid for in full. when he passed she had no money to live and no job, etc. so I helped here take out 100k so she could live until she could get her social security and my dads pension payment. kinda of out of the blue she wants me to sign this quit claim? like I am gonna screw her over. she says she is going to sell the house cause she can not afford to live in it. she only has about 40k cash left of the 100k and the house is worth about 350k or so. she keeps saying "I know all about people like you, my sister told me all about people like you" her sister is a real estate something or another. something about her having to buy me out or my interest? like I want money or something??? I have no intension of trying to get anything from her for the house, I just want the loan repaid so my credit is not screwed. like I said I am doing my own thing, I only did this to help her out.
I told her that me being on the title is the only security I have for the loan thats out as a co borrower. she refuses to acknowledge that. I am not really sure what to do. she wants me to go see her lawyer next week to sign the quit claim, should I do it?
she say it looks better to the bank or buyer if only one person is on the title. it will be better this way if I am not on the title. so if I do sign and she repays the loan then fine, but if not and I sign the quit claim, I may own 97k?
any advise would really help I am at a lose
thanks
I really have no interest in the house. doing my own thing, I own land in another state and am moving there next year sometime. I could pay the mortgage payment if I had to. but I was put on deed in case my mom passed away, that way there would be no excess taxes due or any other thing the government can charge if I was not on the deed. my dad passed away a couple years ago and at that time the house was paid for in full. when he passed she had no money to live and no job, etc. so I helped here take out 100k so she could live until she could get her social security and my dads pension payment. kinda of out of the blue she wants me to sign this quit claim? like I am gonna screw her over. she says she is going to sell the house cause she can not afford to live in it. she only has about 40k cash left of the 100k and the house is worth about 350k or so. she keeps saying "I know all about people like you, my sister told me all about people like you" her sister is a real estate something or another. something about her having to buy me out or my interest? like I want money or something??? I have no intension of trying to get anything from her for the house, I just want the loan repaid so my credit is not screwed. like I said I am doing my own thing, I only did this to help her out.
I told her that me being on the title is the only security I have for the loan thats out as a co borrower. she refuses to acknowledge that. I am not really sure what to do. she wants me to go see her lawyer next week to sign the quit claim, should I do it?
she say it looks better to the bank or buyer if only one person is on the title. it will be better this way if I am not on the title. so if I do sign and she repays the loan then fine, but if not and I sign the quit claim, I may own 97k?
any advise would really help I am at a lose
thanks
as you described this in more detail, the first thought that came to me was "reverse mortgage." since the main purpose of her mortgage was to provide for her, that would be a solution. that's what those loans were created for - to provide funds for the remainder of someone's life. from what you've said, there's plentiful equity.
with a reverse mortgage, she need not have good credit - credit is immaterial; further, there's no repayment until sale of the home or death, whichever takes place first. by all means, investigate this as a possible solution. it will allow for her to have what she needs and it will provide you with a way out of your obligation; and, of course, it will eliminate any need for the discussion of foreclosure.
with a reverse mortgage, she need not have good credit - credit is immaterial; further, there's no repayment until sale of the home or death, whichever takes place first. by all means, investigate this as a possible solution. it will allow for her to have what she needs and it will provide you with a way out of your obligation; and, of course, it will eliminate any need for the discussion of foreclosure.