Posted on: 19th Jan, 2009 05:43 am
hello, my father-in-law bought a house for us due to poor credit. the mortgage loan is in his name but we pay the mortgage. the loan came with no escrow for property tax and insurance. we also pay those. after six months we process a quit claim deed with him and the property tax bill is in our name now so we claim this on our income tax but he claims the interest paid on the loan, which is still in his name, on his income tax. later, after two years, we are late paying the property tax and the mortgage company paid the bill and then imposed an escrow account for the taxes. we paid the mortgage company back and don't mind paying the extra each month and let them pay the tax bill out of the escrow. but now the yearly statement that once came with only the interest paid now has the property tax on it and in my father-in-law's name. with the quit claim deed, how do i claim the tax and can i claim the interest?
rhinorub
rhinorub
hi rhinorub,
i think as the mortgage is in your father-in-law's name, so the property tax bills are coming in his name. though the property tax bills used to come in your name, but now as an escrow has been created so the bills will be coming in his name. you should also note that signing a quitclaim deed has only added you to the property. it has not added your name to the mortgage docs. in order to add your name to mortgage docs, you will have to refinance the loan. for refinancing the loan, you should have a good credit and income history. once you refinance the property, i think the property tax bills will come in your name and you can also claim the mortgage in your income tax.
thanks
i think as the mortgage is in your father-in-law's name, so the property tax bills are coming in his name. though the property tax bills used to come in your name, but now as an escrow has been created so the bills will be coming in his name. you should also note that signing a quitclaim deed has only added you to the property. it has not added your name to the mortgage docs. in order to add your name to mortgage docs, you will have to refinance the loan. for refinancing the loan, you should have a good credit and income history. once you refinance the property, i think the property tax bills will come in your name and you can also claim the mortgage in your income tax.
thanks