Mortgage is under my name but house belongs to my brother. How can I get out of this nightmare?
My brother had a really bad credit rating. He bought a house but the mortgage is under my name. The deed has both my name and my brothers. The house is his and he is responsible for paying the mortgages. He has made many late payments and my credit is ruined. Now he is getting divorced and his wife is taking over the payments. She wants me to sign and put her name on the deed. I am stuck and don't know what to do. I have asked them to refinance the house under her name but she says her credit is bad. I am scared that she may take out loans on the house and not make the mortgage payments. She says she will take a loan from the bank once her name is put on the deed to pay off the home equity loan. I am scared that after taking the loan, what if she doesn't pay the equity loan? Is there any way out for me? I don't trust my brother or his ex wife at this time. I don't want to be sued by the bank for loans she may take out on the house once her name is on the deed. Please help me and give me advice on what to do. My intentions were good but now they are threatening me. I don't want their house and only want to get out of a messy divorce. by Jasdee_255_775 from Hicksville, New York. Mar 16th 2013
Charlie Sparks (CharlieSparks)
#8 ranked lender in New Mexico - 401 contributions
A nightmare indeed. First of all, I wouldn't sign of on the deed if your name is on the loan. This seems to be the only power you have. You would be giving up ownership and retaining liability on the note. Tell them if she wants you off the loan they need to figure out how to improve her credit so she can refinance in her name solely. If her credit is that bad I doubt any bank will approve her for a new loan, even if it is to pay off an existing equity line. Besides waiting for at least 12 months since the last 30 day late mortgage payment she may have to pay off any outstanding collections or judgements she has in order to finance it herself. She should get in touch with a local mortgage professional from this forum to access where she is now and what she needs to do. In the mean time, the nightmare is more theirs than yours. I hope it all works out for you.
Raymond Denton (Raymond)
#10 ranked lender in Ohio - 224 contributions
Listen to Charlie - do what he suggests.
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,843 contributions
Sorry to hear of your mess... But this is a great example of why you should never co-sign or finance something for someone who can't do it on their own. No matter what the good intentions, unless you are 100% ready, willing and able to make "their" payment, don't do it. There is a reason a lender won't lend to them... Good luck.
Joy Goldbeerg (jgoldberg)
#101 ranked lender in New York - 14 contributions
I would not sign anything over to her or anyone else for that matter, if you do that you have NOTHING. at least now you own the home with your brothers , if you sign a deed over you own nothing and still are obilgated for the payment and it will continue to effect your credit report. I would really speak to your brothers and put the home up for sale , You may want to also speak to an attorney. Should you have any other questions, you can feel free to call me at 631-559-3586 after 9am tommorow morningThank you Joy GoldbergAccurate Capital Corp.www.accuratecapital.com
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