Updated about 7 years ago on . Most recent reply
Property under one name, loan under someone else’s name.
Has anyone ever had a property under their name but the mortgage is under someone else’s name? Who picks up the interest expense? Should the property owner pick up the interest expense even though the mortgage company issued a 1098 to the other individual?
Most Popular Reply
@Francis Mendo - The mortgagee is the lender... I am sure they have involvement.
It is not about who actually makes the payment... but who the agreement is between.
Similar scenario... My wife had a car loan in her name when we were dating but I made the payment. If I did not pay the loan, then her credit would have taken a hit and the repossession process would have been between the bank and her. Again, the agreement was between the bank and her... not me.
If the land owner wants to receive the tax deduction, then they should refinance the outstanding balance and have the loan in their name.