Here's the story: Me and my fiance cosigned a house for my mom and a house for my uncle. Mom's house is $700,000 and uncle's is $800,000 for a combined total of $1.5 million in real estate under our names.
We did a credit report check recently and found out mom hasn't made a house payment in 6 months and uncle pays but is late.
My FICO score went from 689 to 551 and fiance's went from 660 to 503. Yes, it's THAT bad. So bad in fact that we were turned down from buying timeshare and trying to get a condo. We have to move in 3 months and no one will take us due to our scores. We even tried renting a room and got turned down due to score.
I know refinancing is the best way to be permanently removed as opposed to quit claim.
Should we hire a lawyer? Would that do any good?
Also, are we entitled to half of the equity on both houses since we are primary?
We were planning on getting married next year and getting a place of our own but now it's not going to happen.
2006-08-25 21:32:24 · 13 answers · asked by jaycie685 2 in Business & Finance ➔ Credit
We would like to know how to be permanently removed from both parties so we can start to rebuild our credit.
Thank you to all who respond!
2006-08-25 21:33:48 · update #1
Forgot to add this:
We are both 26 years old and live in San Diego, CA.
2006-08-25 21:34:38 · update #2
It sounds as if you need Quit Claim Deeds on both properties. Get your names off of those titles and loans ASAP. The damage has already been done and now you need to rebuild your own credit scores. Talk to a mortgage broker or a Real Estate attorney for more information about how to get started.
Here's a link to more information on Quit Claim Deeds: http://homebuying.about.com/cs/realestateglossary/g/quitclaim_deed.htm
Good luck!
2006-08-25 21:48:48 · answer #1 · answered by Angie P. 6 · 0⤊ 0⤋
Well, since your mom hasn't made a payment in 6 months there's no re-fi in her future. Foreclosure and eviction are more like it.
Unfortunately you can't just get yourselves removed from the loans; it doesn't work that way. I'm quite surprised that your mother's lender hasn't come after you yet for the arrearages.
If you're on the deed as owners probably the only thing you can do is sue for partition and buy out her equity. Once you deduct the outstanding payments there probably won't be much to pay her anyway. You'll be held liable for the debt as a co-signor so you might as well get her off the deed. Whether you evict her is up to you. If you're not on the deed, you're pretty much screwed.
Not a lot you can do in your uncle's case since he is paying.
Yeah, a lawyer sounds like a good idea!
2006-08-26 01:40:28 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
This is what you do! List both homes since you are on the Title. So when you parents and uncle walk out they see a for sale sign. Call you cursing and you state you messed up my credit and future life. How does it feel not to know this was going to happen. Ok so that is what I would do. Here the deal. Even with those low of scores you can still own a home bad is you will hate the interest rates. I would state you refinance both and get the equity out. Half to the wedding and half to a new home. Since its in San Diego you will need at least 120K am sure to find a decent property as a down payment. If your mom has not paid in 6 months than I am sure Foreclosure status may of started. Unclse maybe talked to him and find out the deal. If you need me to do a market anaylisis on your property I can do it for FREE since all that information is FREE to me. Lets discuss this and get you two out of trouble.
2006-08-27 19:03:22 · answer #3 · answered by Openthathouse.com 4 · 1⤊ 0⤋
You'll have to refinance the mortgage to have your names removed. I'm amazed that you could get that size of a mortgage to begin with, because 60 credit scores aren't that great. If you gave any money toward the down payment, then you would be entitled to some of the equity if the house was sold. Otherwise, it's up to your mom and uncle if they want to share. You could press this issue in court, but then you'd be destroying a family relationship. good luck
2006-08-26 05:30:04 · answer #4 · answered by what the heck? 3 · 0⤊ 0⤋
bostonianinmo's answer is the only intelligent one here!
You can not get your name off the loan without the bank's permission, and that is not likely.
Your mom/uncle will not be able to refinance in their name unless they can pass the credit check. Since their credit has been hurt as bad as yours then that's not likely either.
So you have two options. Kick out mom/uncle and sell the home, or figure out how you can refinance under your name.
But the damage has now been done to your credit, and I don't see any way to quickly restore it.
2006-08-26 05:57:15 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Holy cow! Well, I hope this was a lesson for both of you. Go see legal advice immediately! A lawyer will be able to tell both of your options. The hardest way out of it would be bankruptcy, but that will demolish both credit ratings for 7 - 10 years! Since you're young, figure in 10 years.
2006-08-25 21:39:45 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Contact a credit couselor:
Credit Counseling Programs
http://www.complete-debt-info.com/category/Credit-Counseling-Programs.html
2006-08-25 22:39:58 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Wow, serious issues. I would DEFINATELY invest in an Attorney before looking into refinancing. I know its family, but you may have to persure legal action to force payment or sale of the properties in order to free yourselves of this debt.
2006-08-25 21:40:53 · answer #8 · answered by Anonymous · 1⤊ 0⤋
I'm no expert but I know one thing: You need to talk to a lawyer!!! Make it an attorney that specializes in Real Estate. You need to dissociate yourselves from these two houses as soon as you can.
2006-08-25 21:40:27 · answer #9 · answered by Ellen J 7 · 1⤊ 0⤋
my advice would be to go to the lender and explain the situation. Tell them you want a refi and ask NICELY for them to remove the negative info from your credit report.
They might not, but asking is free.
2006-08-26 02:24:15 · answer #10 · answered by jgain 3 · 0⤊ 0⤋