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josesanchez1202 · Joined: 19 Jun 2011 Posts: 2 1.51 Dollars($)

I purchased a home with my Mother a few yrs back and now i would like to buy another home on my own. If I quick claim her the house would it be easier for me to buy another house?

gmakerley · Posted: Sun Jun 19, 2011 4:23 pm Post subject:

Jose, the key is this: is there a mortgage on that home, and are you obligated as a borrower? If there is and you are, then quit claiming your interest in the property won't mean much other than your relinquishing your ownership rights. You'd remain liable for any mortgage.

If there's no mortgage on the home, then it might help you to quit claim, but that depends on what tax and insurance obligations you'd have on the house. If they're negligible in relation to your income, I doubt it would hamper you in attempting to purchase a new home.

Quite frankly, when you sit down with a loan officer, these are queries that you ought to be able to get frank and accurate answers to. I suppose you're trying to solve the problem before it occurs, however. That's not always necessary, and it's not always possible - especially depending on what current obligations you might have in regard to that house.

In other words, if I knew more, I'd give you a better, more defined answer.

josesanchez1202 · Joined: 19 Jun 2011 Posts: 2 1.51 Dollars($)

Yes, its a mortgage on the home and I was the cosigner for the loan. I just want to purchase me a home of my own because i'm tired of renting this loft where i'm at now and I don't want it to look like i'm trying to purchase a rental property.

gmakerley · Posted: Sun Jun 19, 2011 6:23 pm Post subject:

But wait...you don't even live in that house now, is that right? That being true, any reasonable lender (and yes, UNreasonable ones clearly exist) would not anticipate that you're lying about seeking a new primary residence if you are currently paying rent. Now if all your mail goes to the house that you own, they'll question you about that, but if it's clearly simple to see that you are living in a rented place now, they ought not be concerned about your lying in order to purchase an investment property.

I think you're okay either way...as long as your income is sufficient to carry whatever debt you have (including the other mortgage).

gmakerley · Posted: Sun Jun 19, 2011 6:24 pm Post subject:

And, I might add....if it can be documented that your Mom has been paying the mortgage for at least the most recent 12 months, most lenders will accept that documentation and not consider the debt as an ongoing obligation of yours.

Guest

George, yes my mom has been paying the mortgage there by herself for over 3 yrs and I have been renting a place the whole entire time. So let me make sure I understand you correctly. So there is no need for me to go and get a quick claim deed If I can show I havent been staying there and as long as I have the income to show that I can afford the new property?

Guest

George, yes my mom has been paying the mortgage there by herself for over 3 yrs and I have been renting a place the whole entire time. So let me make sure I understand you correctly. So there is no need for me to go and get a quick claim deed If I can show I havent been staying there and as long as I have the income to show that I can afford the new property?

gmakerley · Posted: Mon Jun 20, 2011 8:19 pm Post subject:

Certainly you'll need to run this scenario by your loan officer, but you are reading me right, yes. As a general rule, if you're a borrower on a loan that's being paid by someone else, lenders will ignore your obligation as long as you can document those third party payments. What they'll look for is, preferably, canceled checks from your Mom showing those payments made.

As long as your income can cover what you're about to do, then you ought to be home free.

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