Getting my daughter off of my sons title
When my son wanted to buy a house he didn't have good enough credit so my daughter had to put her name on the title as well because she had better credit. Now several years later my son wants his house back and my daughter wants to buy her own house but can't because her credit is tied up in this house. My son can't refinance because he is not working. Is there a way to get my daughter off the title so she can be free of this house? We are in Hillsboro, Oregon
Your son needs to refi. Its probably not being on the title to the house that's the issue. Its being on the loan. The only way to get her off the loan is to refi. Your son needs to get a job and qualify for the loan on his own. If that's not possible, sell the house and pay off the loan that way.
Yes he tried to refinance but he hasn't worked in a couple of years. He is on disability. He was in Afghanistan a couple times with the marines so now has some issues he needs counseling for but won't go. I wish I could make him get a job but can't. My daughter is stuck in this deal and now wishes she would have never help him get the loan. Her and her family of 4 need to buy but are stuck. I was hoping there was some loophole or something that can get her free. Her Credit is being held hostage :)
Yes, that's exactly what's happening. Her brother is holding her credit hostage. Anytime someone co-signs a loan they should assume they are 100% responsible for paying off that loan. Sounds like he's making the payments, so at least she's not stuck with those. Hopefully they're being made on time because late payments will damage her credit, too. He should get his act together or sell.
The only alternative is for her and her husband to have enough income to qualify for both loans at once.
Yes I agree with you completely. It just makes me mad that my son is trying to move her and her family out. They can't afford to buy so have to waste money on renting. I believe he is planning on selling eventually but not soon enough. Really sucks for my daughter.
In many locations renting is actually a better deal than buying. You pass up the opportunity for value appreciation, but how did that work out for folks who bought in 2006? When you buy with a mortgage you are "renting money". Yeah, you can deduct the interest, but you're still paying. You're just paying with pre-tax dollars rather than after tax dollars.
Further, there are costs involved with buying and HUGE costs involved with selling.
Don't fall for the BS the real estate industry puts out. Ads often say "buy for the cost of rent" and compare rent to the PITI payment. These ads completely gloss over that many, many costs associated with owning. When you rent and the furnace quits on the coldest day of the year, you call the landlord and they get it fixed. When you own, its completely on you. Along with many other costs.
There are benefits to owning. But there are very real costs that are often overlooked in the rent vs. buy calculation.
Hey @Matt Salinas sorry to hear about your son's disability. Do you by chance know what percentage his disability rating is? I'm not sure what county he is in but a lot of places if he is over 70% disabled he doesn't have to pay property taxes. This can definitely help with a refi, also is this a VA loan? I wish I could offer more advise but there is no way to just remove yourself from a loan, but depending on his disability the VA has some great programs that might be able to help.
Originally posted by @Matt Salinas:
When my son wanted to buy a house he didn't have good enough credit so my daughter had to put her name on the title as well because she had better credit. Now several years later my son wants his house back and my daughter wants to buy her own house but can't because her credit is tied up in this house. My son can't refinance because he is not working. Is there a way to get my daughter off the title so she can be free of this house? We are in Hillsboro, Oregon
Hi Matt,
Your son might not need to refinance, but your daughter might need to find a lender with fewer restrictions.
If you're still short of the 12 months, keep it clean and simple. Have the son pick an account that doesn't have a bunch of hard to explain large deposits going in, and make payments from that account and only that account.
If you don't want to wait that 12 months, note that jobs aren't the only form of mortgage qualifying income. VA disability, etc, counts too.
Send your son a s/f from a random internet stranger.
Thank you for all the great feedback! It's a hard situation since my son is being an as#hole about it. My daughter has 3 kids and 2 with autism. He is wanting her out right away and she can't find anything that she can afford just yet. Always something!
Hey @Matt Salinas sent you a message about your son. Hit me back.
Great work again @Chris Mason