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quit claim deed

Posted on: 20th Jan, 2007 03:11 pm
wanting to find out what to do in my situation. i have owned my home since 03 and currently the only one on title. i am trying to get a equity loan or line of credit right now but my credit isnt as good as my fiancee's. i was told by the bank that i am going to get the equity line from that i could quit claim her so that we could get the equity loan using her credit instead. ?, is this correct and if it is would the 1st mortgage show in her name now on credit reports or just the equity loan. thanks
Hi Flyboy,

Welcome to Mortgagefit discussion board.

Yes as her credit score is better than yours if the loan is taken in her name then she would get competitive interest rate. You need to quit claim to make her part owner of the home as it is necessary for the person taking out a loan to have ownership rights over it.

Thanks
Blue
Posted on: 20th Jan, 2007 03:21 pm
As she will be taking out the equity loan by her name, the reports will show only this loan and not the 1st mortgage.

Jeff Buckley
Posted on: 20th Jan, 2007 03:26 pm
would i still have all responsibility over the first mortgage as far as payments and everything? she wouldnt be responsible at all for the first mortgage just because i add her using the quit claim
Posted on: 20th Jan, 2007 03:29 pm
Hi,

She is not named as a co-borrower for the 1st mortgage, so it won't appear on her report. Just by having ownership of the house will not make her liable for the 1st mortgage.

Let me also advice that you inform the 1st mortgage holder that you would be taking a equity loan and she will be included as co-owner of the house.

"would i still have all responsibility over the first mortgage as far as payments and everything? she wouldnt be responsible at all for the first mortgage just because i add her using the quit claim"
She doesn't have responsibility to pay for the mortgage for which she is not a co-borrower. You will have to continue making the payments as before for the 1st mortgage.

Blue
Posted on: 20th Jan, 2007 03:37 pm
Posted on: 20th Jan, 2007 03:41 pm
"she wouldnt be responsible at all for the first mortgage just because i add her using the quit claim"
If you want to have her share some of the payment responsibility for the 1st mortgage then inform the lender about it and get the mortgage refinanced to include her as a co-borrower.

But if the rate for your first mortgage is better than what the current rates are then it would be better not to go for a refinance as then the lender will charge you current rates and might result in increase in your monthly payments.

David
Posted on: 20th Jan, 2007 03:47 pm
Flyboy,

A joint tenancy with right of survivorship will be the option for you to choose. With this type of ownership if in case something happens to you, your wife as the joint tenant will automatically receive the title share held by you and no one else will have any claim over the said property.
Posted on: 20th Jan, 2007 04:00 pm
Hi Flyboy,

Welcome to the forum.

If you wish to use your fiance's credit to qualify for the home equity loan, then you can either make her the cosigner or the co-borrower.

If you make your fiance the cosigner, she will be responsible for the debt only when you fail to pay it off. However, if your fiance is the co-borrower, then she will be equally responsible for the monthly payments.

Now, once you make your fiance the cosigner, she will not have any ownership interest in the property. But if she is the co-borrower, then you can add her name on the title through quit claim deed.

Hope you will benefited from this information.

God bless you.

Samantha
Posted on: 22nd Jan, 2007 03:21 am
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