Posted on: 20th Mar, 2010 11:17 am
sure you've answered this question 100 times but i didn't wanna scroll...ha
couple of elements to this question. i have had financial trouble and i am behind a few payments on my mortgage. my brother has better credit than i do, and we have been discussing a quitclaim of my property to him, then he would refinance it in an attempt to have a lower mortgage payment, and i would then basically "rent" the home from him until i get on my feet and then he would quitclaim it to me in a year or so. is this a possible, solid and perfectly legal idea? will he lose his first time buyer credit if he does this? what are the negative implications of such a decision?
thanks for the consideration.
couple of elements to this question. i have had financial trouble and i am behind a few payments on my mortgage. my brother has better credit than i do, and we have been discussing a quitclaim of my property to him, then he would refinance it in an attempt to have a lower mortgage payment, and i would then basically "rent" the home from him until i get on my feet and then he would quitclaim it to me in a year or so. is this a possible, solid and perfectly legal idea? will he lose his first time buyer credit if he does this? what are the negative implications of such a decision?
thanks for the consideration.
Hi cat,
You can quit claim the property to your brother. However, he would be able to refinance the loan in his name only after bringing the payments current. If the loan payments are not current, the lender will not be ready to refinance the mortgage. You can then rent the home from him. However, your brother will not be considered as a first time buyer in this case. After a year, when your financial situation improves, you would be able to refinance it back in your name.
You can quit claim the property to your brother. However, he would be able to refinance the loan in his name only after bringing the payments current. If the loan payments are not current, the lender will not be ready to refinance the mortgage. You can then rent the home from him. However, your brother will not be considered as a first time buyer in this case. After a year, when your financial situation improves, you would be able to refinance it back in your name.