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I bought a home for my sister in California over 6 years ago. She got a great deal but was unable to qualify for a loan so I was asked to buy the home under my name (so the house is legally mine).

I was told by the agent and mortgage broker that the process of transfer would be easy and could be done through a quick claim deed. I have then found out that's not true and only title gets transferred. The note and liability still stays under my name.

I've taken zero interest in the property since day one with all the monies ( down payment, monthy payments, etc) being taken care of by my sister. I also do notclaim the property on my taxes.

I have asked the bank for a loan assumption but was denied due to my sister's bad credit. She is up to date on all the payments but I feel uneasy about the future. Any advise on what I can do abut this mess?

Thanks,
Mig

jameshogg · Posted: Tue Jun 01, 2010 9:33 pm Post subject:

Hi Mig,

It is true that the property can be transferred with the help of a quit claim deed to your sister but it won't remove your mortgage liabilities. Your sister will have to refinance the loan to remove your liabilities towards the mortgage of the property. In order to do so, she will have to improve her credit. Your sister can check out the given page in order to know some steps to improve her score:
http://www.mortgagefit.com/credit-rating/credit-repair.html

Thanks

Guest

[url]You will have to have your sister refinance the property in her name, or outright sell it to your sister. But if your sister has bad credit, then she might not be able to be approved for the loan. it's a sticky situation. I would suggest a short sale to your sister, but it will affect your credit a slightly negatively and your sister will still have to get a loan to purchase the property.[img=right] Very Happy

oswingrant · Joined: 13 Mar 2010 Posts: 57 0.39 Dollars($)

[url]You will have to have your sister refinance the property in her name, or outright sell it to your sister. But if your sister has bad credit, then she might not be able to be approved for the loan. it's a sticky situation. I would suggest a short sale to your sister, but it will affect your credit a slightly negatively and your sister will still have to get a loan to purchase the property.[img=right] Very Happy

[/img] http://www.mortgagecrisistips.com

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