Timing on when I can have quit claim fliled?

ccinfant · Joined: 26 Dec 2008 Posts: 2 1.60 Dollars($)

My Fiance and I are trying to buy a home. We were told by our bank we will need a co-signer b/c my fiance is self employed and seen as a risk to the bank. His mother is willing to co sign. However, in NY State, and b/c it's an FHA loan, her name would also have to go on title. I feel uneasy about this b/c I don't want ownership with anyone aside from my fiance/spouse, especially if co-signer can claim ownership on a home she never invested into. So when can we have the quit claim filed by her? can this be done at the time of closing? What is the timing on this?

gmakerley · Posted: Fri Dec 26, 2008 9:47 am Post subject:

as far as your lender is concerned (and the fha as well), there is no "right time" since your mortgage is going to have a due on sale clause in it. yes, there is the likelihood that your mortgage will be assumable, but i doubt that's a method by which you can switch ownership in a suitable fashion.

you noted that your future mother in law would have the right to claim ownership on a home "she never invested into." i beg to differ: co-signing on the note to ensure your ability to purchase is a major investment. if you or your fiance are unable/unwilling to make payments on that mortgage, guess who will have to? the act of faith that she is showing is a big investment, and you need to respect that much, at least.

i understand your quandary, and i appreciate your desire to be the sole owners of the home, but you may just have to sweat it out for a while. i am also hopeful that your lack of ease with the situation doesn't have anything to do with your relationship with his mom.

you'll need to iron out a few wrinkles in these relationships (it seems) so as to get over the hurdle of the co-signature requirement.

ccinfant · Joined: 26 Dec 2008 Posts: 2 1.60 Dollars($)

No, it has nothing to do with any wrinkles in our relationship, just trying to avoid any possible legal issues in the future.

smithsussane · Posted: Sun Dec 28, 2008 10:33 pm Post subject:

Hi ccinfant!

As far as I know, it will be difficult for you to remove a co-signer from the mortgage and the property. If your fiance's credit improves so that he can qualify for a loan himself, then the lender may be ready to refinance the mortgage in his name and remove his mother from the mortgage. After this she can quitclaim the property to both of you. If your fiance's credit does not improve, there are chances that the lender may ask him to find another co-signer for the mortgage.

Feel free to ask if you have further queries.

Sussane

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